The Bold New Venture for Big Capital - Tank Farms for

Hydrocarbon Products Storage & Related Services

 Vision
World-class provider of
independent tanks storage and
related logistics services to
regional and international oil and
petrochemical industries
Business Aspirations
• To provide investors with a unique long-term investment
opportunity that promises superior financial returns in a
strategic sector of the global oil business
• To create a lucrative spin-off business that benefits from
the global network of strong contacts and pool of
expertise connected with the exploration, production and
trading of crude oil resources
• To take business advantage of the ‘dividends’ from peace
and stability in Negeri Sembilan that will enable the
country to become a secure haven for energy securities of
countries in the region
• To promote and develop Negeri Sembilan into a leading
hydrocarbon and petroleum products storage and
transshipment center apart from being an internationally
recognized oil exchange center and oil trading hub
• To offer a new channel of ‘big business’ that will
contribute significantly towards increasing Negeri
Sembilan’s revenue and GDP.
 Why Is This Service Crucial?
The Drivers…
•A ‘warehousing’ facility will allow for better handling of local energy
demands by traditional big buyers in the oil market because it allows them
to plan ahead knowing that they could always rely on the extra supply in
hand at storage areas in case of shortfall

•Limited investment for storage facilities at refineries/terminals has a huge

impact on the other operations involved in the buying and selling of oil. A
tank-for-rent service will be the perfect answer to these storage constraints

•High occupancy rates in existing tank storage facilities around the world is
a healthy indicator for the future growth of this sector. It is also an indication
of the rising demand for strategic ‘warehousing’ for oil supplies as factors of
uncertainty in the international oil market continues to influence pricing and
inventory
 The Drivers…
 Continued economic growth in Asia Pacific will have a direct and
unprecedented effect on global energy consumption. The supply
lifeline needed to feed the demand, will be complex enough to
warrant extra storage facilities for shipment stop-overs and
reserve inventory

 To plan for a “National Strategic Petroleum Reserve” is a major

aim in the drive for nations to ensure their energy security for
continued domestic economic growth. Trusting their petroleum
stocks to the safekeeping of a storage facility located in a
peaceful and stable region like Negeri Sembilan will be a high
priority agenda

 Negeri Sembilan’s coastal area lies along the Malacca Strait –

lucrative oil shipping lane waiting to be tapped
Major oil trade movements
Oil production by area
Oil consumption by area
Oil product consumption – by region
   Services
(Full complement)
Storage and handling of Petroleum,
Gasses & Chemical Liquids..

Blending.. Treatment.. Repackaging..

Distribution & Warehousing

 Products Phases
Short Term
Petroleum products: crude oil, gasoline, kerosene,
Naphtha, Gas oil and fuel oil

Medium Term
Basic Chemicals: e.g. Olefins, Aromatics, Solvents, Resins

Longer Term
Gasses: LNG, LPG, CNG
 Project Economics
(Sample)

Assumptions:
 Tankages: Crude oil (3), Gas oil (2) and Gasoline (2)

 Investments : $ 20 millions (Opex $ 4.5

mils/year)
• Tanks farm : $ 14.2
• SBM/Pipelines : $ 3.8 mils
• Infrastructure : $ 2.0 mils
 Operations:
• Interest rate per annum : 3.5 %
• Maintenances + utilities : $ 2.4 Mil/year
Rental Charge Cents 0.03 Per bbls./day.
 Project Economics
(Preliminary)

Payback Period:
40% Occupancy = 3 years (NPV @16% ($ 49.5
Mil)
30% Occupancy = 3.5 years (NPV @16% ($28.3
Mil)
20% Occupancy = 5 years (NPV @16% ($7.2
mil))

NPV 18% 20% 22%

40% Occupancy = $42.3 $36.2 $31.1
30% Occupancy = $23.5 $19.5 $16.0
20% Occupancy = $4.7 $2.7 $1.0
 Clients / Customers

 Private and state-owned oil

companies
 Refiners / Producers
 Petrochemical companies
 International Traders in petroleum
and chemical products
 Key to Success
 Regional Demand / Supply
imbalances
 Need to export / import or for
intermediate storage
 Operational excellence and flexibility
to accommodate changes in products
flows
 Strategic location crucial factor
 Mix of customers and functions give
stability over time