NOT AN OFFICIAL UNCTAD RECORD. A Risk Management Company.
-
Upload
benjamin-hart -
Category
Documents
-
view
216 -
download
1
Transcript of NOT AN OFFICIAL UNCTAD RECORD. A Risk Management Company.
We today have a direct presence in We today have a direct presence in 33 countries33 countries
with a staff of 1800 qualified with a staff of 1800 qualified personnel,personnel,
supported by a network of 97 supported by a network of 97 agents.agents.
Headquartered in GenevaHeadquartered in Geneva
Geneva : Group Headquarter
« To provide our Customers integrated risk management solutions through superior credit support, inspection, quality assurance, delivered world-wide by a team of professionals applying the best technology. »
Our Mission,Our Mission,
Our Our MissionMission
The ACE - AUDIT CONTROL & EXPERTISE Group
Our Risk Management Services,Our Risk Management Services,
Our Our ServicesServices
ACE Pre-Loan Survey (Due-Diligence)ACE Pre-Loan Survey (Due-Diligence)
ACE STF Training ServicesACE STF Training Services
ACE Monitoring Services (Inventory & ACE Monitoring Services (Inventory & Receivables)Receivables)
ACE Inspection ServicesACE Inspection Services
ACE Audit ServicesACE Audit Services
ACE Agricultural Credit Management ACE Agricultural Credit Management ServicesServices ACE Credit Shield (Insurance) ServicesACE Credit Shield (Insurance) Services
ACE Collateral Management ServicesACE Collateral Management Services& ACE Field Warehousing Services& ACE Field Warehousing Services
The ACE - AUDIT CONTROL & EXPERTISE Group
"Financing Oil Imports "Financing Oil Imports Using Integrated Risk Using Integrated Risk
Management Management Solutions"Solutions"
Oil Local Marketing Chain- Previously highly regulated -
Liberalization of the downstrea
m marketing
chain
Vertical integration of the Oil Marketing chain from the international level (Majors)
Intervention of
Majors & International banks
on the local
market
Strangulation of
Local Oil Importers
THE FACTSTHE FACTS
OIL FINANCING - MARKET CONSTRAINS
Lack of (or
Weak) Regulato
ry Mechanis
m
Since Oil or Product Finance is Since Oil or Product Finance is mainly mainly
A MULTI-STEP LOAN A MULTI-STEP LOAN MANAGEMENT…..MANAGEMENT…..
« TRANSACTIONAL » FINANCING
The BANKS, The INSURERS & ACE need to The BANKS, The INSURERS & ACE need to
know:know:Oil Specifications Market Environment (if it is a buyer or seller market)Logistics aspectsStorage and Refining CapacityTransportation availabilitySecurityTime CyclePrice MechanismsSelling Mechanism (Firm Offtake or Speculation)
EVALUATION OF THE TRANSACTION EVALUATION OF THE TRANSACTION TO BE FINANCEDTO BE FINANCED
The preparation of the terms of the facility agreement The preparation of the terms of the facility agreement requires full knowledge and in-depth understanding of requires full knowledge and in-depth understanding of
the Risks associated to the transaction.the Risks associated to the transaction.
« TRANSACTIONAL » FINANCING
PARTIES INVOLVED IN THE TRANSACTIONPARTIES INVOLVED IN THE TRANSACTIONThe bank/Insurer & ACE have to know the various The bank/Insurer & ACE have to know the various players involved in the transaction in order to players involved in the transaction in order to secure the collateral and remove the lien of the secure the collateral and remove the lien of the parties :parties : First Stage Buyers, Suppliers, Exporters Traders Transporters Refineries Tank Farm Operators Forwarders Shipping Agents Insurers Brokers
One objective only : One objective only : Completion of the Completion of the transaction in facilitating transaction in facilitating Repayment of the loanRepayment of the loan
« TRANSACTIONAL » FINANCING
- 90/10 Principle -- 90/10 Principle -90% of Imports are done by 10% of Actors90% of Imports are done by 10% of Actors
1.1. Majors (International Integrated Oil Majors (International Integrated Oil Company)Company)Between 5 to 10 operating in the country,Very well equiped with logistic and infrastructures,They own their own terminal, tank storage and distribution outlets.2.2. Small ImportersSmall ImportersHigh number in operation,Very few or outdated logistic and infrastructures,Rarely possess terminal or tank storage and distribution outlets
COUNTRY - OIL IMPORT STRUCTURE
- 90/10 Principle -- 90/10 Principle -90% of Imports are done by less tan10% of 90% of Imports are done by less tan10% of
ParticipantsParticipants
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
In Tons
Majors Independent Importers
Group of Importer
Crude Oil & Products Imports 2002-2003
Crude Oil
Products0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
In Tons
Majors Independnt Importers
Group of Importer
Crude Oil & Products Imports 2001-2002
Crude Oil
Products
COUNTRY - OIL IMPORT STRUCTURE
Tank Farms,Tank Farms, Most storage facilities owned by the Majors. Very well equipped and allowing
good storage conditions when owned by Majors. Ill equipped when owned by small importers.
Refinery,Refinery, Old refining facility
Under-maintained and decaying processing machinery, with diminishing refining capacity. Output covers about 50% of Products internal demand.
COUNTRY - OIL IMPORT STRUCTURE
Deregulation of Oil & Product Import Deregulation of Oil & Product Import Marketing ChainMarketing Chain Registered importers increased very quickly.
But most of them had, no own storage facilities.no prior experience of dealing in petroleum.Imports were segmented into small lots.
Effective regulatory mechanism was left to basic « Supply & Demand » rule. As a result, Small product import lots bypassed existing
storage facilities to go directly to retail pump stations.
Tax body was unable to control effectively the numerous and small imports.
Adulteration of products by mixing increased and further boosted by differential grade taxing.
Product standards varied drastically within the country.
Minimum safety standards were not met by newly created retail distribution network.
COUNTRY A – CHALLENGE
Liberalization of downstream petroleum marketing was prompted by the previously described situation to promote competition.
It resulted in serious changes to the importing structure….
Field Tank Farm Receipt & Receivables Field Tank Farm Receipt & Receivables Financing Financing
coupled with, coupled with,
The idea would be to
Use in synergy Field Tank Farm receipt & Receivables financing with
Multilevel biotechnical and chemical cargo marking process - which applies unique DNA codes - allowing for unequivocal identity proof of ownership and source of Oil/Products cargo,
With permanent real time monitoring for Tank Farm storage through the use of an integrated IT graphic solution combining permanent sensor and ultrasonic measurement technologies with Web enabled reporting using ACESMART.
AN ACE RISK MANAGEMENT SOLUTION
1.1. DNA Cargo Tagging,DNA Cargo Tagging,2.2. IT Real Time Tank Storage Monitoring,IT Real Time Tank Storage Monitoring,3.3. near real time fully secured over the near real time fully secured over the
web reportingweb reporting
Wide Area Network, via IP: dial up, GSM, wireless, satellite or a combination of all, depending on conditions & existing infrastructureACE On-Site interventions for: -Marking / Tagging -Sampling & Analysis (Country Wide)
AN ACE RISK MANAGEMENT SOLUTION
Oil/Products Tank Storage or Refinery Complex
ACE On-Site Real Time monitoring network & sensorsACE Central Server
Pre-Operation Phase - ACE will
- Identify Tank Farm / Terminal - Survey Tank Farm / Terminal - Approved Tank Farm / Terminal Sub-Lease from owners Operate Tank Farm/Terminal
Pre-Operation Phase - ACE will
- Survey Refinery Process - Approve Refinery Facility Sub-Lease from owners Obtain Weaver & Consent from owners
Pre-Operation Phase - ACE will
- Identify Field Tank Farm - Survey Field Tank Farm - Approved Field Tank Farm Sub-Lease from owners Operate Field Tank Farm
ACE Integrated Risk Management Solution - Collateral
Management & Monitoring -
Concept
CR
UD
E O
IL
TANK FARMStorage
REFINING
PROCESS
TANK FARMStorage
TANK FARMStorage
TANK FARMStorageOPERATION PHASE
ACE will - Monitor Processing - Control Quantity out - Control Weight out - Control Quality out - Attend & Monitor Transport
OPERATION PHASE - ACE will
- Control Distributed Quantity - Control Weight Out - Control Distributed Quality
TRANSMIT TO FINANCIER
Delivery Documents.
OPERATION PHASE - ACE will
- Control Quantity and Weight In - Control Quality In - Approve/Refuse crude oil entry - If approved, DNA Tag oil cargoTRANSMIT TO FINANCIER Quality/Quantity/Weight Cert. Issued Tank Farm Receipt
OPERATION PHASE ACE will
- Control Quantity out - Control Weight out - Control Quality out - Attend & Monitor Transport
Pre-Operation Phase - ACE will
- Identify Tank Farm / Terminal - Survey Tank Farm / Terminal - Approved Tank Farm / Terminal Sub-Lease from owners Operate Tank Farm
Pre-Operation Phase - ACE will
- Identify Field Tank Farm - Survey Field Tank Farm- Approved Field Tank Farm Sub-Lease from owners Operate Field Tank Farm
ACE Integrated Risk Management Solution - Collateral
Management & Monitoring -
Concept 2
PR
OD
UC
TS
TERMINAL/TANK Storage
TANK FARMDistribution Storage
TANK FARMDistribution Storage
TANK FARMDistribution Storage
OPERATION PHASE - ACE will
- Control Distributed Quantity - Control Weight Out - Control Distributed Quality
TRANSMIT TO FINANCIER
Delivery Documents.
OPERATION PHASE ACE will
- Control Quantity out - Control Weight out - Control Quality out - Attend & Monitor Transport
OPERATION PHASE - ACE will
- Control Quantity and Weight In - Control Quality In - Approve/Refuse product entry - If approved, DNA Tag product cargoTRANSMIT TO FINANCIER Quality/Quantity/Weight Cert. Issued Tank Farm Receipt
The LEGAL Nature of ACE Risk Management Services
The Depositor relinquishes possession of the property;
This is the legal term describing the relationship when the ownership of personal property resides in one person and possession of it is in another.
ACE assumes « exclusive, continuous and notorious possession of the property ».
Two conditions are necessary for « Bailment » to exist,
BAILMENT CONCEPTBAILMENT CONCEPT
The depositor of the goods is known as the « Bailor »
The person engaged in storing the goods of others for compensation (I.e. the Collateral Manager) is known as the « Bailee »
Oil/Products Import Structure – Legal Agreements
- “All Risks” plus misappropriation.- Professional Indemnity, Fraud & Omission.- Political Risk (confiscation, expropriation, nationalization & Depossession).
CMA & CSS Agreements
Assignment of
Insurance
Sale & Purchase AgreementAssignment of Farm Tank Receipt & Proceeds
Procurement/Purchase Contract
ACEACE
Insurance Company
Distribution Network
Financing Bank (SPV)
Transporters
TANK FARM
Storage
REFINERY Process & Storage
Small Importers
TANK FARM
Storage
Transporters
SUPPLYER
Lease/Sub-Lease,
Weaver & Consent
Agreements
Transport, Weaver & Consent
Agreements
Refining/Storage or
Tolling Agreement
Transport, Weaver & Consent
Agreements
Lease/Sub-Lease,
Weaver & Consent
Agreements
Purchase,Weaver & Consent
Agreements
Oil/Products Import Structure – Product Vs Cash
Product Grade ACE Tank Farm Receipt
ACE crude Oil Tank Farm Receipt
Grading
ACETank Farm Receipt
CMA & CSM Fees
Transporters
Distribution Network
TANK FARM
Storage
REFINERY Process & Storage
Small Importers
TANK FARM
Storage
Transporters
SUPPLYER
Revenue Authority
ACEACETax & Duties
Transport Fees
Processing/Storage Fees
Storage Fees
Cash for Procureme
nt
Transport Fees
Storage Fees
Financing Bank (SPV)
Financing Bank (SPV)
Proceeds from Sales
Field Tank Farm Receipt Financing
Benefits of implementation for StakeholdersBenefits of implementation for Stakeholders1. To Tank Farm Operators/Refinery Reduce number of small counterparties. Eliminate bypassing of existing infrastructure. Constant monitoring of storage conditions and stored quantities.2. To Small Importers Reduced transactional obstacles (economies of scale). Reduced transactional cost (economies of scale). Access to Tank Farm financing (Field Tank Farm Receipts).
4. To Financing Institutions Securitized warrant based financing. Access to unratable and previously non-financed borrowers.
3. To Tax Authorities and Consumers No more tax evasion and increased cargo tracebility capacity. No more Fuel alduration. Improved Quality & Safety Standards country wide.
Near Real Time, On-Demand, Secured Near Real Time, On-Demand, Secured and direct access to reliable data...and direct access to reliable data...
Creates integrity & transparency in the transactionCreates integrity & transparency in the transactionResulting in Value Chain creation…Resulting in Value Chain creation…
We, at ACE, are know ready for this challengeWe, at ACE, are know ready for this challenge
ACESMART
COMPLETE VISUAL & FRIENDLY TO USE INTERFACE
Tank 9
JET FUEL A1JET FUEL A1
GASOILGASOIL
UNLEADED 95UNLEADED 95
UNLEADED 98UNLEADED 98
EMPTYEMPTY
HEAVY FUEL OILHEAVY FUEL OIL
MDOMDO
IFOIFO
(Headquarters) - Rue Richard-Wagner 11202 Geneva – Switzerland
Tel. : +41 22 919 91 11 Fax : +41 22 919 91 19
Email : [email protected]
www.ace-group.net
.... dedicated to Risk Management
ACE Services ....