WLPGA Oceania Regional Summit Exceptional Energy for Australia, New - - PowerPoint PPT Presentation

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WLPGA Oceania Regional Summit Exceptional Energy for Australia, New - - PowerPoint PPT Presentation

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For our families. For our communities. For our islands. WLPGA Oceania Regional Summit Exceptional Energy for Australia, New Zealand & the Pacific Islands 17th-18th May 2016 Gold Coast, Australia Overview of FSMPC & Market

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For our families. For our communities. For our islands.

WLPGA Oceania Regional Summit “Exceptional Energy for Australia, New Zealand & the Pacific Islands”

17th-18th May 2016 Gold Coast, Australia Overview of FSMPC & Market Conditions in Micronesian (FSM) Islands By Maderson Ramon Vital Energy Inc (Guam & Nauru) A Subsidiary of the FSM Petroleum Corporation

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Outline of Presentation

  • 1. Background and Overview of FSMPC
  • Overview of Federated States of Micronesia
  • Overview of FSM Petroleum Corporation – BOD & SMT
  • Mandates, Operations and Accomplishments
  • 2. Issues and Challenges
  • Asset Rehabilitation Program
  • Decline in Sales Volumes
  • Volatile International Oil Price
  • 3. Strategies and Opportunities
  • Voyaging Together 2025’
  • Regional Expansion
  • Coconut for Life (C4Life)
  • Solar Power Installations
  • LPG in Micronesia
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Background & Overview

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Federated States of Micronesia

Source: pictures from www.visit-micronesia.fm; above stats: SBOC, 2010 Census Data

States Pohnpei Chuuk Yap Kosrae FSM/Total

Population 36,196 48,654 11,377 6,616 105,843 Area (sq km) 371.6 121.5 119.5 111.4 n/a Municipalities 12 40 23 4 n/a Rural Pop. % 83.2% 71.5% 92.6% 67.4% 77.7%

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FSM Petroleum Corporation & Its Mandates

  • Created by FSM National Congress in Sept. 11, 2007 (PL15-08)
  • Became operational on July 2008 – purchased XOM Assets in Yap, Chuuk, Pohnpei.
  • Mandate by PL-1508 was for FSMPC to
  • Purchased the assets of XOM & Consolidate procurement of fuel purchases
  • Secure availability, accessibility and affordability of fuel products in FSM
  • Deliver lower energy prices to homes, businesses, and governments in FSM
  • Invest into new and renewable energy sources
  • PL16-68 known as the ‘Coconut Tree Act’ dissolves the FSM CDA and mandates ‘responsibility

for coconut development’ to FSMPC (June 16, 2014).

  • FSM National Energy Policy: Assist where feasible achievement of NEP’s major goal –

“To become less dependent on imported sources of energy by having (1) an increased share of renewable energy sources and having (2) cross-sectoral energy conservation and (3) efficiency standards in place; and therefore, “By 2020 the share of renewable energy sources will be at least 30% of total energy production, while electricity efficiency will increase by 50%. Energy Efficiency referred here would also mean reduction of energy loss.”

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FSMPC BOD & SMT

Senior Management Team

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FSMPC Operations – Regional Entity

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FSM Component Unit Audit - 2014

Balance Sheet Statement P&L Statement

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Issues & Challenges

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Asset Rehabilitation Program

  • An investment of $19.0MM is planned over the next five (5) years to

maintain operational integrity of core import and distribution infrastructure assets.

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Declining Fuel Demand in FSM

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Volatile International Oil Price

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Strategies & Opportunities

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Strategic Framework, 2016-2025

Vision:

“By 2025, Vital FSM PetroCorp is the largest provider

  • f energy life-line products and services in

Micronesia”

Mission:

“We deliver affordable, accessible, and available high

quality energy products and services through innovation to the communities we serve”

Sample of Performance Measures:

 By 2025, 25% of FSMPC customer base will be non-FSM.  By 2025, 35% of Revenue will be from non-fossil.

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Strategic Framework, 2016-2025

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Other Energy Sources: Solar Power

Vital Energy 100kw Solar Installation – Guam / GPA

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Other Energy Sources: LPG in Micronesia

Guam 73% Saipan 14% Palau 8% Marshalls 1% FSM 2% Kiribati 1% Nauru 1% Rota 0%

2015 LPG Market Share in Micronesia

(Estimate of 9-10k mt/yr)

87,861 36,994 26,871 12,190 39,869 17,087

  • 11,391

PNI CHK KSA YAP

2015 FSM Volume Sales (US gallon)

2015 Volume Sale Kero 2015 Volume Sale LPG (Est) $9.75 $11.65 $9.50 $5.78 $4.35 $4.60 $5.30 $0.35 $0.45 $0.47 $0.16 Pohnpei Chuuk Yap Guam

Comparison of Cost / Unit

$/GAl LPG $/Gal Kero

  • Benefits of LPG is well documented
  • Way Forward for LPG in Micronesia
  • Consolidate fragmented markets;
  • Increase volume thru bulk purchase
  • Negotiate better / effective supply logistics
  • FSMPC can be a viable Partner!
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Thank you

Contact Details: Maderson Ramon, GM / Vital Energy Inc. Email: petrocorp@fsmpc.com; Website: www.vitalenergy.fm