5000bpd refinery example

Modular Refinery Funding “PITCH” Presentation

GENERIC EXAMPLE

WRENConsultingLimited

5,000Bpd Modular Refinery and Tank Farm


This is an example: Modular Refinery can be between 5,000 and 20,000 bpd. This presentation is showing you just what a 5,000 bpd refinery could profit your company.

Sample letter from funding source.

Project Highlights Phase 1 Started with Technical Partner Owner 5 Hectares of land - example $40mUSD Funding Need Off taker – List your IOC or Blue Chip 5,000bpd Refinery – Tank Farm Location on the Refinery


Problems worth solving Increase Nigeria's Refinery Capacity Competitive Prices Refined Products High Quality Products to Market Adding Value Nigeria's Oil Industry Create Employment Opportunities


Our solutions 5,000bpd Refinery and Tank Farm Align with Nigeria's Specs Low Prices Minimum Impact of Local Environment - During Construction and Operation Supply Local Business and Poplulation


Target market

prospectsNigeri

a

KeroseneDiesel

170,000,000 Population

Naphtha – World Market


Supply & Demand NigeriaDuring 2014 there was an estimated shortfall in Nigeria’s production of refined products for 271,2000bpd PMS,44,100bpd HHK, and 101,400bpd AGO.

Your Company is seeking to refine only5,000 bpd of crude oil, there is sufficientDemand for the refined products.

Refined Products Import Estimates


Competitive landscapeCompetitors(Imported)

How our solution is better

Refined Products Questionable Specs Self Refined Products

Tanker Contamination During Shipping Higher Quality and with no exposure

Search for Offtaker Easier access to Market

Higher Prices Competitive Prices

Landed Cost $376 per MT No Landed Cost

Port Congestion Decentralized


Funding neededPurchase Refinery - $8.3mUSDConstruct Tank FarmCivil Works - $25mUSDDeployment Capital - $6.7mUSD

$40M


Potential Sales channels Domestic Petroleum Products

Distribution Product Storage IOC, NOC Trucking and Vessel Export products as requested Develop Retail Outlets


Marketing activities Increase Business Development Staff Work with surrounding depots Develop Retail Outlets


Marketing - SavingsYour Company will not incur the following fees that the importer are charged. Source PPPRA – as of 3/3/2016


Off taker AgreementsWhen it comes to obtaining funding this is one of the critical areas that must be addressed with urgency. If you don’t have agreements(LOI or Contracts) with a IOC or Blue Chip it will be very hard to get Foreign Funding.


Crude Supply60% of the supply of crude will becoming from NNPC, and is guaranteed by the Government. When a client obtains the LTE from DPR the agreement confirms the supply of 60%. 35 Billion barrels in a overwhelmingly large hydrocarbon reserve in Nigeria.

The reaming 40% of the needed crude will becoming from ____________

This is another critical issue that must be addressed to ensure funding.


Date Timeline

March 15, 2016 Phase 1 Technical Partner Completed

May 16, 2016 Funding Received from WREN Option

June 6, 2016 Phase 2 - Fabrication Begins and Construction

April 24, 2017 Refinery Arrives in Nigeria

June 12, 2017 Refinery Operational

Potential Timeline


Partners and resources

Vfuels

VFuels Designs, Engineers, and Fabricates Modular Topping Plants, Modular Refineries, and Modular Gas Plants

WREN Consultimg LimitedAdvisory firm that specializes in helping small to mid-size Oil and Gas companies in Nigeria. Focus on internal operations and funding.

Nationwide GroupAs International Fund Providers, we specialize in creating custom tailored finance solutions based on the specific needs of our clients.Nationwide Finance works with the largest lending institutions and Export Credit Agencies (EAC) across the globe. As well as, a proprietary network of boutique banks, private finance institutions, and equity firms.

EPC TBD

Funding option will determine the EPC Company that will manage and construct the tank farm.

Engage with WREN and we bring a full solution – Refinery Technical Partner, EPC(Tank Farm) Partner, and Funding Partner.

We blocked the names of the companies on this slide.


Financial projections


Following based on 5,000 bpd at $55 per Barrel

Cash Flow Projection


Balance Sheet Projection


Profit and Loss Projection


Projected Financing


Projected Direct Cost


Projected Revenue


Conclusion


The slides were based on a 5,000 bpd refinery at $55 per barrel, and you could see that the profit per year was over $43mUSD. Take the same projections at $35 per Barrel the profit margin will be greater because the refined products here in Nigeria are still high.

If you are in a position to consider such a project please feel free to contact the Senior Partner of WREN Consulting Limited at [email protected] or call 08034192892

mailto:[email protected]