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REFINERIES FOR SALE

REFINERIES FOR SALE

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REFINERIES FOR SALE

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  1. REFINERIES FOR SALE HOUSTON, TEXAS USA 1 Created by: Ajay Sinha, P.Eng., MBA Property of United Group Holding Corp

  2. Table of Contents Page # • World Oil Demand--------------------------------------3 • Texas Refineries Operable Capacity-----------------4 • World’s Largest Refineries (Barrels / Day)---------5 • Offer for Sale--------------------------------------------6 • Refinery #1-----------------------------------------6 • Refinery #2-----------------------------------------6 • Facts------------------------------------------------------7 • Value Proposition---------------------------------------8 • Authorization Letter------------------------------------9 • Schematic of Refinery for Sale-----------------------10 • Questions & Answers----------------------------------11 • Where do we go from here?--------------------------13 • Seller will provide----------------------------------14 • Buyer will provide upfront------------------------14 • What does this all Mean?------------------------------15 • Thank You------------------------------------------------16 2 Created by: Ajay Sinha, P.Eng., MBA Property of United Group Holding Corp

  3. 3 Created by: Ajay Sinha, P.Eng., MBA Property of United Group Holding Corp

  4. U.S. Texas Refineries Operable Capacity (Atmospheric Crude Oil Distillation Capacityas of January 1, 2007) Source: Refinery Capacity Data by individual refinery as of January 1, 2007 4 Created by: Ajay Sinha, P.Eng., MBA Property of United Group Holding Corp

  5. World's Largest Refineries (Barrels/Day) 5 |:--Source: Oil & Gas Journal 1. The Reliance I & Reliance II are adjacent to each other and on completion would be the world largest refinery at a single site. Consisting of 1.2m capacity. Created by: Ajay Sinha, P.Eng., MBA Property of United Group Holding Corp

  6. Offer for Sale • Refinery #1 • 100,000 bbl Capacity / day • Delivery September 2008, Houston • Designed for Crude API of 34 to 36 • Refinery #2 • 50,000 bbl Capacity / day • Delivery July 2008 Houston • Designed for Crude API 34 to 36 SOLD 6 Created by: Ajay Sinha, P.Eng., MBA Property of United Group Holding Corp

  7. Facts • Units are being sold for USD 17,500 per barrel plus commission. • Two interested parties but no deposits have been issued. • In addition to contracted refurbishment, a plasma arc reactor can be added to the final process to eliminate the heavy residues and reduce emissions. • Power plants could be obtained and installed in conjunction with core purchase. • API Spec to 34 – 36. • Plant can be modified to accept crude between API 29 to API 35, or buyer’s destination requirements. (This is the purpose of contracting for purchase before refurbishment is commenced) • The refineries will be brought up to standards before deliverance. It will be sold, under contract, before refurbishment occurs and then final payment will be made when refinery is delivered or operational, depending on terms of negotiations. • The plant is currently closed by one of the Big Oil Majors. • Plant does not have the license to operate at present location but can be relocated to any Non-USA sanctioned nations. 7 Created by: Ajay Sinha, P.Eng., MBA Property of United Group Holding Corp

  8. Value Proposition • Manageable Opportunities: • Ability to expand and capitalize on refurbished refineries are favorable due to current and projected market conditions. • Operational risk is relatively low due to experienced refurbishing firm and their proven track record. • Plant can be modified to meet emissions standards of EURO 1/2/3 or US EPA Standards 2000. • Plasma arc reactor can be added at the final process to eliminate the heavy residues and reduce emissions • Refineries come with tank farms, Civil Engineering, Etc., - A Turnkey Package. • Assistance to buyer to relocate refinery to major North African Country. • Assistance to buyer to obtain operating license and allocation of 100,000 bbl of crude per day from the Libyan Government for long term operation. • Refinery can be retrofitted to handle Libyan Crude (lighter crude). 8 Created by: Ajay Sinha, P.Eng., MBA Property of United Group Holding Corp

  9. Authorized Representative for Seller Authorization Letter To be provided upon receipt of Condition LOI (Attached) and Bank Capability Letter to Purchase 9 Created by: Ajay Sinha, P.Eng., MBA Property of United Group Holding Corp

  10. Schematic of Refinery for Sale 10 Created by: Ajay Sinha, P.Eng., MBA Property of United Group Holding Corp

  11. Refinery Questions and Answers: Page 1 of 2 1)What was the length of time the refinery was operated? This refinery has been assembled from 3 other refineries that were purchased and reconfigured together. All plants were built in eighties and some were shut down 7 years ago and others 2 years ago. 2) What was the last date of operation and capacity under which the refinery operated. (Did it refine 100,000 / bbl/day on the last date of operation)? No, we are adding a 100,000 bbl/day crude unit to 20,000 bbl/day FCCU and all other units such as Coker, etc to bring this unit to a 100,000 bbl/day refining capacity with 60% to 65% conversion rate base on crude oil API 34 to 36. 3) What are the API of crude ranges the refinery can handle? The new configuration would work best with 34 to 36 API but you can use heavier crude such as 28 to 30 API as well to exception of dropping in premium product yields. Furthermore, we can upgrade the unit with gasification units to bring the conversion rate to 85%, 90%, or 100% such that the finished products from these conversions will produce blending components. There are other options as well such as adding reformer for cheaper increase in yields. 4) If refurbished, what would be the Emissions Standards? This is not a simple question to answer but we can always bring the emission below the mandated requirements by the hosting country if the owner is willing to spend the money. To best answer this question, we would need to know where will the refinery be installed. 5) Would it concur to U.S. EPA or Euro Standards? Yes, if we add plasma Arc reactors to process the smoke stacks and amine units to capture the CO2 from the tail gases. 11 Created by: Ajay Sinha, P.Eng., MBA Property of United Group Holding Corp

  12. Refinery Questions and Answers: Page 2 of 2 6) Would the refinery be brought up to these standards before being sold? Yes, we need to know where is it going to be installed. 7) Is the price of USD 17,500.00 / barrel negotiable? The answer is yes based on configuration. For example, if the owner wants to install the tank-farms and power generation equipment as well as perform all the civil elements then the price will be less. However, if the owner wishes to go with higher conversion rate or change the specifications for crude oil and/or install plasma arc reactors, the price maybe increase. 8) Warranty? The current refinery will come with one year warranty and will be around $9,500 per barrel excluding the tank-farms, jetties, racks, civil and power generation. The 60% to 65% conversion rate based on 34 to 36 API crude oil is included in the erection and start-up. There will be 45 days crude oil storage, 15 days refined products storage, 240+ power generation facilities, jetties or docs racks, blending tanks, civil erection, start-up and training for 90 days that will bring the price up to $17,500 per barrel. 9) What is required to secure facilities? A verifiable POF with LOI and deposit of 500M USD to secure the facilities is required. Refineries with these types of conditions and availability are very difficult to attain. We will have 92 refineries for closure between now and 2012. 12 Created by: Ajay Sinha, P.Eng., MBA Property of United Group Holding Corp

  13. Where do we go from here… Seller will provide: • Inspection of Plant to prospective buyers • Presentation of Legal Papers Buyer must release following upfront before inspection & legal papers: • NCND Document (Separate Attachment to be Provided to Buyer) • Conditional LOI on buyer’s letterhead (Attached) • Bank Capability Letter to Purchase Refinery (Attorney to Attorney) 13 Created by: Ajay Sinha, P.Eng., MBA Property of United Group Holding Corp

  14. Conditional Letter of Intent PURCHASER COMPANY LETTERHEAD 7 TH DECEMBER 2007 To: Director on Board Subject: Purchase of Petroleum refinery located in the Untied States With specific reference to the above subject matter, we. __________________________ hereby irrevocably confirm that, on the proviso the Refinery documents submitted to our office meet with our approval, we stand, ready willing and able to move forward with the acquisition of the subject Refinery located in the United States of America. We, ……………………………………………………………………., further confirm that by signature below we have the financial capability to complete the Purchase of the Petroleum Refinery located in the United States as per the terms and conditions stated below. We understand that United Group Holding corp. has been authorized to solicit potential Companies that would have an interest in the Purchase of the refinery and facilities thereof. We accept for the Refinery documentation to be provided to us upon the execution of the following from our office: • THIS DOCUMENT SIGNED AND SEALED • SIGNED NDA • CONFIRMATION ON A LEGAL-TO-LEGAL BASIS THAT FINANCIAL CAPABILITY IS IN PLACE We also understand that the Petroleum refinery has a capability to refine 100000 Barrels per day and that it has to be relocated from the present location. That, the relocation could be done (with the assistance of the refurbishing company) to any Non-USA/UN sanctioned Country [i.e. Libya] wherein assistance for consistent supply of crude oil would be possible. We M/s…………………………………………….hereby acknowledge that, while the base Sale price offered to us is $17500.00 Per barrel (within a certain limit) open to negotiations, it is understood and unconditionally accepted that the agreed to final Purchase price shall include and/or incorporate a 3% (Three Percent) of Total price as commissions for facilitators (United Group Holding Corp & associates) involved. UPON RECEIPT AND APPROVAL OF ALL DOCUMENTS, WE ARE PREPARED TO MOVE FORWARD Thanks Regards 14 Created by: Ajay Sinha, P.Eng., MBA Property of United Group Holding Corp

  15. Add plasma arc reactor: Eliminates heavy residues & reduce missions • Expand and capitalize on refurbished refineries • Low Operational risk • Modified  emissions standards of EURO 1/2/3 or US EPA Standards 2000. • A Turnkey Package: Tank farms, Civil Engineering, Etc. • Relocation Assistance to buyer’s destination country. • Assistance with operating license and allocation from Libyan Govt. • Retrofit for Libyan Crude. What does this all mean? OPPORTUNITIES CRUDE REFINERY HOUSTON BUYER DESTINATION $17,500.00 / BBL (Libya)

  16. 16 Created by: Ajay Sinha, P.Eng., MBA Property of United Group Holding Corp