"Crude oil processing and realization of liquid petroleum products to end consumers"

Project description

WORKING CONCEPT
(organization a highly profitable business)
"Crude oil processing and realization of liquid petroleum products to end consumers"
Organizer – OOO "-" – affiliated structure of "Union of oil and gas Industrialists of the Russian Federation".
Task: to organize on a permanent basis purchase of raw material (crude oil) from producers to supply its refineries, to food processing and implement them directly to end consumers.
The organizing team has high administrative resource, enabling:
• to enter into contracts to purchase crude oil directly from its producers (ROSNEFT, GAZPROMNEFT),
• to enter into contracts with certified refineries for processing on mutually beneficial terms,
• use real customer base-products for entering into long-term contracts for sales of petroleum products.
To solve this problem it is necessary:
1. To negotiate with a potential partner ("- "), which are interested to participate in this business.
Conditions:
• Partner has a private financial capacity to entry into this business.
• Partner agrees to payment of the first volume of crude oil (50.000–100.000 tons) under a direct contract with the manufacturer. (1.150.000.000 RUB–RUB 2.300.000.000).
2.To open a new company account in the Bank coordinated with a Partner with 100 % control over the movement of capital and goods.
3.To fix this p/s the required amount to confirm the solvency of the new company and its ability to pay invoices producers for crude oil and its transportation to the refinery.
4. To enter into contracts:
• for crude oil (manufacturer),
• for delivery of crude oil to refineries (W.d. transport or by pipeline, depending on the volume),
• refinery processing of crude oil to the agreed volume of holiday products
• sale of finished products to the end consumers (pickup or WFP on the basis of 100 % prepayment).
Financial calculation (approximate):
The cost of crude oil from the producer ≈ 23.000 RUB/t.
Delivery to the refinery: ≈ 1.000 RUB./t (calculated separately in the formation of the contract).
The recycling process: ≈ 2.300 RUB/t (≈ 10% of the cost of crude oil), or oil refinery takes a certain percentage of crude oil as payment for their work.
Total direct costs: ≈ 26.300 RUB/t.
The minimum contract for the purchase of crude oil: 50.000 tons per month – 600,000 tons per year. (1.315.000.000 RUB per month 15.780.000.000 RUB per year)
Maximum quota (already agreed) on raw materials: up to 100,000 tons per month is 1.200.000 tons per year.
Reserves:
Storage at refineries: 500 RUB./t. (reserve in case of delay of export of the finished product by the consumers).
Additional cost: 1.000 RUB./t. (reserve in case of unforeseen expenses).
Total: 27.800 RUB/t.
Implementation: 37.800 RUB/t (Considered to be the volume of crude oil).
Income: 10.000 RUB/t.
Taxes, salaries, maintenance of premises and other: ≈ 5.000 RUB./t (≈ 50 % of income).
Net profit: ≈ 5.000 RUB/t.
Allocation of net profit:
• 10 % (500 RUB/t) – capitalization of enterprises
• 40 % (2.000 RUB./t.) – Partner (10% of the costs) (funding),
• 40 % (2.000 RUB/t) – the Organizer (the company's management and the "administrative resource").
Turnover (planned) cost 30 calendar days.
When the output volume of 100,000 tons per month obtained the contract for pumping of raw materials to the refinery through the pipe. Up to this point we carry oil "the wheels.
The increase of the company's revenues can be achieved by increasing the share of realization of motor oils with self-organized production in its packaging and implementation.
All the figures are approximate and are subject to change, but the principle payments will remain exactly that.