International and Direct Refined Petroleum Trading Operation FTZ

Opportunity Snapshot

Investment Opportunity

Petroleum products trading direct from suppliers/refineries to licenced importers in various countries. Mainly Gasoil, Gasoline, LNG and LPG (crude).

Direct trading of refined products (ago gasoil, diesel, gasoline ron91/93 etc., jet fuel, sometimes LPG & LNG, occasionally crude).

Target markets: West African Region, e.g. Nigeria (massive importer), Ghana and their neighbours; Asian markets (India, Philippines and their connections, etc.); possibly EU (for example Belgium has a big supermarket group with 3000 own vehicles plus 100 own filling stations and growing a.o.))

Transaction size: usually slots of 15kMT to 30kMT per product and per client, some spot deals but also steady clients with term contracts.

Delivery from refineries and/or title holders’ suppliers direct to importers off-takers. Hence no brokers, agents etc. coupled with a professional but lean operation (no unnecessary excesses) resulting in an attractive margin based on growing volumes.

Based on initially up to 2 regular importer clients per target market, and positioning for growth.
Within 5 years the aim is to be a trader to be reckoned with, going for own vessel(s) and depots in the target markets.

Using Dubai/UAE as the HQ with qualified & experienced staff, small trading team supervised by an experienced US or EU expat, in this strategically located zero taxation nation with excellent infrastructures, also benefiting from the increasing refining capacities in the Gulf Region. Refining supply contacts also from Singapore, Malaysia, Arab Gulf (real connections with royals) (next to, if need be Italy, Portugal).

Extra care for ongoing training of key personnel via professional post graduate/practical courses (a.o. the O&G programs of the Joint Oxford & Princeton universities held in UK & Singapore etc.). Hedging & risk management.

Competitive Advantage

As compared to the main big traders (Litasco, Glencore, Trafigura, Vitol, etc) same basic structure, but lean, avoiding any unnecessary excess, resulting in less overheads.

Hence being able to offer attractive pricing while maintaining a correct service & integrity. Creating an own niche market based on quality, experience, also connection in emerging markets.

Still aiming at expansion & growth, phase-wise, careful to upgrade staff & financial capacity, in order to sustain steady growth. Always looking for new opportunities and be pro-active. Involve the locals in the emerging target markets to create an added value and create good-will with the appropriate authorities.

The promoter has over 20 years Africa experience and formerly with a large EU independent.

Envisaging own depots & distribution outlets, possibly partaking in refining (Nigeria and Ghana) in target markets.

Rationale for the deal

Coupled with competitive advantage, the above emerging markets present a huge opportunity; Nigeria is a massive importer and Ghana according to its smaller population as well, likewise Asia too is a massive market importing huge volumes of refined products.

Hence there's room for a competent niche player, also with, after initial positioning, room for growth.
These markets are the playing grounds of many a major trader, so opportunity is a given fact.

The promoter has over 20 years of experience in these markets with a large EU independent which enjoyed several official crude contracts with a refinery processing agreement.

Once Ghana, and especially Nigeria got their act together as oil producing nations, we can also switch to becoming a refining partaker and exporter of products.

Use of financing

Establish the corporate structure in Dubai and office infrastructure and all related to having a HQ in UAE with resident visas etc.

Experienced staff recruitment with supervision of a very competent experienced expat (known head-hunter).

Improve the representative offices in target markets (local reps are available but can be upgraded).

Opportunity for the investor

We are looking for serious investor(s) be it silent investor(s) or even one that may bring added value.

Depending on the investment amount an equity proposal can be negotiated with an attractive package, possible with a buy-out after 5 years.

Due to confidentiality, more details & financial projections, can be provided to serious investors. Surely a high reward package can be given or possibly a hybrid package of equity/debt with buy-out might be envisaged. It all depends on the amounts and type of investor.

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