Debt/Equity $5M+$16M for 25%-49% to startup mini-refinery, a cutting edge know-how.
Diversification into oil contracts current operations.
New low-cost solution for 3-step innovative processing instead of 12-step conventional one.
The advanced domestic technology catalyst.
Competitive advantage.
Produces petrol 92-95 and diesel oil.
Output capacity over 300,000 ton per year.
Cost of works $16M.
Several refineries possible upon sufficient funding.
Tech details are to qualified buyer.
Also, the experienced oil operator performs renovation and expansion for oil terminal facility near St. Petersburg.
Access to railway, necessary infrastructure.
The terminal storage capacity of 12,000 ton for light oil.
Cost of works $4M.
Planned additional capacity of 3,000 ton will cost $1M.
Equity position 49% is negotiable for total investments $21M into terminal and refinery.
The terminal and refinery both prospect for profit over $9M.
Opportunity for successful exit.
Despite the attractive margins offered by the industry, listed oil companies are reluctant to spend billions on a new refinery at a time when investors are more concerned about their replacement of reserves.
After years of horrible margins, the last few have produced a remarkable bounce, as refining supply and demand have come into tighter balance.
Over the last year, decidedly old-economy oil refining has proved more attractive for investors than internet.
Yet on the supply side there is unlikely to be a rush to build new refining capacity.
The time to worry will be when investors start believing that super-high refining margins are here forever
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