Acquire a fully operational oil and gas asset with annual production contracted a year in advanceThe Business
This oil refinery, slated for completion in September 2009, has been designed to provide gasoline, diesel and black oil to the local market of a major Siberian city, in one of the most industrialized regions of Russia. The refinery is being constructed by a company that has already completed several similar facilities.
The refinery is owned by a Russia limited liability company that currently has four independent shareholders. The Company is managed by two of the shareholders who have technical experience in the refining industry. The Company owns the refinery, which is sited on land with a fifty year ground lease, which also provides for future purchase at below market price.
Market
The refinery will serve the local market for gasoline, diesel and black oil with production of up to 80,000 tons per year. The local market currently has a significant shortage of these products. There is little local competition that might influence local market prices. The entire year’s production is contracted for sale in advance, which means that commercial risk is minimized.
Projected oeprating results are as follows:
Turnover € 34 m
Costs 30 m
Profit before Taxes € 4 m
Income tax (20%) 0.8 m
Net Profit € 3.2 m
The project has been fully financed and the shareholders are seeking the sale of 100% of the Russian company that owns the refinery.
Sector: EnergySegment: RefiningRegion: RussiaFinancing Size: $5m to $20mContact: Rainer Stawinoga
Company: Russia ConsultingTelephone: +7 925 505 0479Email: [email protected]