Supporting downstream projects: the EBRD approach 27 th January 2017 - - PowerPoint PPT Presentation

Supporting downstream projects: the EBRD approach

27th January 2017

Where we work?

• Operat

ations s in n 36 countries across central and eastern Europe, central Asia, and the Mediterranean.

• In 2011, the Bank

expanded its region of

• perations to include

Egypt, M Moroc

• cco,
• ,

Tunisia a a and J Jordan an (Southern and Eastern Mediterranean region

• r SEMED).
• In 2015, the Bank was

granted a special mandate to operate in Greece and C Cyprus until 2020.

• Also, in 2015,

Lebanon

• n was granted

full EBRD membership and will become country of operations.

2

Introduction to EBRD Refineries Case studies

EBRD T RD Top 5 investees i in 2015 ( (EU EURm) 1 Turkey 1,904 2 Ukraine 997 3 Egypt 780 4 Kazakhstan 709 5 Poland 647

3

A key investor in the extractive industries sector

• Long track recor
• rd:

175 projects for a total of EUR 7.65 billion net cumulative investment.

• Stron
• ng t

team: 30+ bankers distributed across the EBRD region:

• Permanent presence in

Russia, Kazakhstan, Mongolia, Ukraine, Egypt and Turkey.

• 2 in-house mining and

petroleum engineers involved in technical appraisal, due diligence and monitoring.

• Access to additional

expertise (consultants).

• Key s

sectors:

• Oil & Gas up-, mid-, and

downstream.

• Metal ore mining.
• Services Industry.
• 500

1,000 1,500 2011 2012 2013 2014 2015 8M 2016 O&G Mining

Signe ned b bus usine ness vo volume

• C. Asia &

Mongolia, 34%

• E. Europe

& Caucasus 26%

• C. Europe,

13% Russia, 5% SEMed, 7% S.E. Europe, 7% Turkey, 6% Greece, 2%

Operating a assets by by ins nstrum ument Operati ting a asse ssets by su sub-sector

• r

Po Portfo folio by by region

EUR million

Oil & Gas 63% Mining 37% Equity 7% Debt 93%

Introduction to EBRD Refineries Case studies

• Co

Common a and d preferred s

• stock. Typically, up to 20%

minority stake.

• Support to stra

rategic i inve vestors rs. . Share of development- stage risk.

• Lo

Long term rm p partners

• rship. Long exit horizons (5-10 years).
• IPO par

articipatio ion as as an anchor in investor: Increased credibility and comfort to investors and financiers.

• Board re

repre resentation. . Positioning as neutral party (“honest broker”) providing commercial/technical advice and promote best Corporate Governance practices.

• Flexible l

loan structure. Senior/subordinated, mezzanine, project finance, convertible debt, reserve-based, bond issues.

• Up t

to 1/3 o

• f the t

total p project costs.

• Long

g tenors rs. Up to 10 years, tailored to needs.

• A/B syndic

icat atio ion s structures. Preferred creditor status. Mobilization of commercial credit under the Bank’s umbrella.

• Co

Co-finan ancin ing/Par aral allel l lendin ing.

• Mult

lti-cur urrenc ncy lend nding ng. EUR, USD or local currency.

Debt Equity

4 Public equity (IPOs/ FOs) Strategic investor Equity financing Private/ state

• wned investor

Financial investor Public debt Convertible Debt / Equity Asset financing Project financing Senior corporate facilities Corporate bonds Private debt Debt financing Alternative financing Products Borrowing-base Loans

EBRD product flexibility – Tailored to the client’s needs

Loan with warrants

Introduction to EBRD Refineries Case studies

Oil & G & Gas as

Equity Exploration / Early Stages Development / Growth Mature / Expansion

• Flexible f

financing solution

• ns:

Reserve based lending, trade finance, convertible debt, early equity are some examples of the Bank’s wide product range.

• Support across

st stag ages o s of devel elopment ent. The EBRD works with strong sponsors in pre-development stage financing, mine/field development, project expansion and services providers .

5

Financing across the Natural Resources value chain

Mezzanine / Sub-Debt Reserves Based Senior Debt

Introduction to EBRD Refineries Investments in oil & gas infrastructure

6

Recent transactions – Midstream Oil & Gas

Lukoil–Sha hah Deniz Stag age 2 2 2015, Azerbaijan USD 4 450 m million Senior A/B loan Offs ffshore gas field d develop

• pment

PICO P Petroleum G Group 2015, Egypt USD D 50 m milli llion Reserve-based loan Offs ffshore oil l & & gas s extrac action Irku kutsk O k Oil 2014, Russia USD 1 150 m million Senior loan & stand-by facility Onshor

• re o
• il &

& gas as extrac action Advanced E Energy S Systems 2015, Egypt USD D 28 m milli llion and USD 1 170 m million facility Senior Loan & Lead arranger Offs ffshore o

• il

field services OMV MV Petrom – KOM M Munai ai 2014, Kazakhstan USD 2 200 m million Senior A/B loan Onshor

• re o
• il &

& gas as extrac action Romga gaz 2013, Romania USD 2 200 m million Initial Public Offering Onshor

• re gas

s extrac action Improve ved P Petroleum Recove very 2014, Egypt USD 5 50 m milli llion Reserve-based loan Onsh shore o

• il &

& g gas s field d develop

• pment

Kuwait E t Energy C Company 2013, Egypt USD 4 40 m milli llion Senior loan Onsh shore o

• il &

& g gas s extrac action Serinus Energy 2013, Tunisia USD 6 60 m milli llion Senior loan & Convertible Note Onsh shore o

• il &

& g gas s field d develop

• pment

Zhanros Drilli lling 2012, Kazakhstan USD 2 22,5 m milli llion Senior loan Onshor

• re o
• il

fiel eld s ser ervices KUB G Gas as 2011, Ukraine USD 4 40 m milli llion Senior loan Onsh shore g gas s field d develop

• pment

Beresk ska Gaz az - Monolit 2010, Russia USD 1 120 m million Senior A/B loan Onsh shore g gas s field d develop

• pment
• Support to upstream o
• il

and g gas operators and services es c compani nies es. From small and mid- size juniors to regional majors and participants in large project consortia.

• Instruments: corporate

and project finance loans, reserves-based financing, loans with profit-sharing, equity.

• Technical C

Coop

• peration
• n

in energy/resource efficiency initiatives (e.g. Energy Audits, Associated Petroleum Gas flaring studies). Promotion of best environmental, social, health & safety and technical standards.

Merlon Internat ational al 2015, Egypt USD 4 40 m milli llion Senior loan Onshor

• re o
• il

field d develop

• pment

Energean Oil & & Gas as 2016, Greece USD 7 75mil illio ion Senior loan Onshor

• re &

& O Offshor

• re o
• il

field d develop

• pment

Introduction to EBRD Refineries Case studies

STIR Alexandria El Mex Ameriya Assuit Mostorod Cairo El-Nasr Suez Tanta Cairo MIDOR Suez Oil El-Nasr Wadi Feran JPRC

Refinery study carried out by Jacobs consulting-

Focus on Energy Efficiency and product yield improvements

7

Introduction to EBRD Case studies Refineries

Refinery study carried out by Jacobs consulting-

Example: Egyptian Refinery Major Upgrade



Opportunity for Upgrade exists in the refinery through suitable disposition of Heavy Vacuum Gas Oil (HVGO) & Vacuum Residue (VR) to achieve high-value and high-quality refined products



Elimination of fuel oil and asphalt by selection of the right processing configuration is expected to boost margins by approximately 40%.

8

Yields b before a and nd a after i investment nts i in n Hydrocracking ng & Delayed C Coking ng uni units

Introduction to EBRD Case studies Refineries

Refinery study carried out by Jacobs consulting-

Energy efficiency in refineries

9 Introduction to EBRD Case studies Refineries EB EBRD Due D Diligence Pr Process

Fuel (74

74-78% 78%)

Steam (18

18-20% 20%)

Elect ctrici city (4

(4-6% 6%)

• Refineries energy costs of total operating costs has nearly doubled over the past 20 years
• Energy savings are at the heart of upgade programmes.

Refinery study carried out by Jacobs consulting-

Energy Efficiency drivers

10 Introduction to EBRD Case studies Refineries

Operational improvements Good housekeeping Energy monitoring Utility system

• ptimization

Cogeneration Low-grade heat sharing High efficiency motor replacement Heat recovery projects

Heart of the process

Project Summary

11

2016

Signed in

EBRD F Fin inan ance USD 150 million loan to Tüpraş, Turkey’s largest industrial company and the owner of the country’s four active refineries. Pr Project USD 232 million resources efficiency programme, including a new on-site thermal power plant, waste heat recovery system, stack gas treatment, water treatment unit, new fluid catalytic cracker and hydrocracker unit at Kirikkale and Izmir plants. Env nvironm nment ntal I Impact Reduction in NOx and CO2 emissions (270,000 tonnes/year) and water consumption (2.6 mcm/year) as a direct result of the project. Comprehensive Environmental & Social Action Plan (ESAP) to bring the plants in line with EU standards. Transit itio ion I Impact (1) Largest resource-efficiency programme in the Turkish industrial sector to date, fully in line with the Bank’s Green Economy Transition approach. (2) Demonstration of increased competitiveness stemming from efficiency upgrades. (3) Demonstration of OHS standards in line with EU Seveso III directive and beyond national requirements.

Tüpraş, Turkey – Resource efficiency investment programme

Introduction to EBRD Case studies Refineries

Project Summary

12

2016

Signed in

EBRD F Fin inan ance USD 94 million EBRD financing, consisting of a USD 71.9 million senior loan and a USD 21.8 million mezzanine facility to Sonker Bunkering Company SAE (Sonker), a private hydrocarbon storage and trans-shipment company owned by the Amiral Holding and the Egyptian Government. The EBRD financing is part of a larger package with IFC and CIB. Pr Project USD 504 million for the construction and operation of a bulk liquids terminal at the port of Sokhna, on the Red Sea. This infrastructure project is critical to Egypt’s energy security to meet its requirement for gasoil, LPG and LNG imports. Env nvironm nment ntal I Impact Comprehensive Environmental & Social Action Plan (ESAP) has been agreed with the client. Transit itio ion I Impact (1) Promote private ownership in Egypt as Sonker is one of the few independent private players in the sector. (2) Demonstrate the benefits of efficient operation of the hydrocarbons import handling sector. (3) Standards of corporate governance.

Sonker, Egypt – Development of a bulk liquids terminal

Introduction to EBRD Case studies Refineries

21

Co Contact: Anass ss Jound ndy Natural Resources team Tel: +44 (0)20 7338 8265 Email: joundya@ebrd.com Gabriel d l de Lastours Natural Resources team Tel: +44 (0)20 7338 7647 Email: delastog@ebrd.com Dimitri K Koufos Energy Efficiency team, Tel: +44 (0)20 7338 7934 koufosd@ebrd.com,42073387934 EBRD, One Exchange Square London, UK EC2A 2JN

Thank you