OQ - Company presentation · 2020-06-18 · World Market Leader • OQ Chemicals is an industry...
Transcript of OQ - Company presentation · 2020-06-18 · World Market Leader • OQ Chemicals is an industry...
Care Share Dare
OQ - Company presentation
Care Share Dare
16 Oil and gas fields -
155,000 barrels per dayPortfolio
of 35+ products6,200
Employees
15Downstream Plants
in 11 cities 2000 +
Customers in 60+ countries
*
* As of last valuation at Dec. 31 2018
Omani State-Owned Company Started in 1996 (Oman Oil Company) & 1982 (Oman Refinery Company)
Portfolio Size EBITDA Investments
$16 B $2.3 B 54
9 companies have come together as OQ
2
Care Share Dare
Global PresenceOperations spanning 15 countries
USA
Mexico
Brazil
Singapore
ChinaJapan
India
Pakistan
Oman
UAETurkey
GermanyNetherlandsUK
Spain
Includes Production Site
Sales Office Only
Key
3
Care Share Dare
Our Journey Continuing to grow since our foundation in 1982
Oman Refinery CompanyCommissioned as the first refinery in Oman, with a capacity of 50k bpd
Oman Oil CompanyEstablished as a wholly-owned entity by the Govt. of Oman
Oman Gas Company
Oman Oil Marketing Company(omanoil)
Oman Trading InternationalFounded OTI
Oman Refinery Co. & Sohar Refinery Co. MergerFormation of Oman Refineries and Petrochemicals Company
Oman Oil Company Exploration & ProductionEstablished to optimize Omani upstream participation via JVs and operated oil & gas fields
Salalah MethanolProgramme AppleIntegration of Oman Refineries and Petrochemicals Co., Aromatics Oman Ltd., & Oman Polypropylene Co.
OrpicCreated following the initial phase of the integration
OXEAAcquisition of OXEA
Duqm Refinery and Petrochenicals ComplexSigned development partnership agreement with KPI
NAKHLA ProgrammeExploration of value generation across Oman’s oil and gas sectors between Oman Oil Company and Orpic
OQ Brand LaunchDuqm RefinerGround-breaking ceremony
Salalah LPG & Salalah Ammonia Project Foundations
Sohar Refinery Improvements
20182017 2019 2020
20102011 2009 20072013
20001996 2003 20061982
RebrandingOXEA is rebranded as OQ
4
Care Share Dare
Upstream Downstream CommercialExploration and
productionGas processing and transmission Refineries Petchem and
specialty chemicals
Logistics Marketing and trading
Our Value ChainIntegrated assets operating across the full value chain
Suppling products to:
+60 countries
International Oil andGas Markets
5
Care Share Dare
20%
80%
60%26%
14%
47%31%
22%
Non-Core Upstream
Contribution of 2019 EBITDA
USD 2.3 Bn
Non-Core Upstream
Proportion of Valuation (2018)
USD 16 Bn
International
Oman
Proportion of Valuation (2018)
USD 16 Bn
Downstream Downstream
Our Portfolio Balanced portfolio, focused in Oman
6
Care Share Dare
Primary downstream is comprised of oil-based products. Prices are highly-related to oil prices (e.g. transportation fuels).
OQ’s downstream value chain produces products that touch many consumer sectors, reducing correlation with oil prices and adding a margin of more than$2Bn / year
Barrels Per Day Oil and Condensate
Production
OQ Gas Transmission
System
Duqm PetchemAromaticsLiwa PlasticsChemicalsOMIFCOMethanolAmmoniaLPGSamahram Petchem*
End products with no direct threat of substitution across many sectors and industries:
• Textiles• Sports equipment• Automotive parts• Consumer electronics• Furniture• Paints, inks & coatings• Kitchen appliances• Detergents• Medical equipment• Pharmaceuticals• Adhesives• Fertiliser• Others
Primary downstream with demand growth at riskKeroseneSulphurPetroleum cokeGasolineJet FuelGasoilFuel Oil
Natural GasProduction
27% NGLS & other feedstocks for methanol, fertilizers and GTL
ElectricityLNGIndustry (Power and heat)Refinery fuelOil field steam generation
End products
Feedstocks for Further processing
LNG exports and Bunkering
Notes: Data is projected for 2026. Includes Liwa Plastics, Duqm Refinery and LNG Bunkering Projects. Samahram demand not includedSM3 is standard cubic meters.
36% exports
37% End products
PolypropylenePolyethyleneEthylene GlycolsAldehydesAlcoholsEstersPolyolsAminesHigher AlcoholsHigher AldehydesCarboxylic AcidsSpecialty EstersAmmoniaMethanol
64% domestic use
32% Oman Downstream
68% Exports
41 Mn
147SM3/Day
8%
24%
MAF-Sohar 1,-Sohar 2 & Duqm
Refinery)
Refineries
Our Business ModelDiversify and Add Value
7
Care Share Dare
Our Strategy
Care Share Dare
One OQOpportunity to unlock synergies in a large portfolio
Global Integrated Energy Company
Reach globallyMaximise value chain
Share resources
Deliver long-term growth Create value and ROI
Offer smart energy for better living
Sustainability
Improve input costsOptimise logistics
Invest in innovation
Business Excellence
9
Care Share Dare
An Integrated energy company delivering Sustainability & Business Excellence, the Omani way
Our AspirationsCustomers are central to our business
Talent• Our people thrive globally
• We are proud of the talent we grow
Hydrocarbon• Manage 1 million barrels of oil
equivalent per day• Add at least USD 25 of value per barrel
in our downstream business
Financials• Minimum of USD 1B dividends
declared per year as of 2029 onwards• Increase value to shareholder funds
from USD 8B contribution to USD 30B market capitalisation
Nation• Facilitate international & local private
participation in the oil and gas sector
• Double our GDP contributions to USD 20B
Customers
10
Care Share Dare
Our AspirationsThe bar is set high for our 2030 aspirations
1M
Barrels per day managed
$25+
Of value added per barrel in downstream
2x
Double OQ's 2019 EBITDA and
valuation by 2030
$1B+
Of dividends for our shareholders
11
Care Share Dare Cop
yrig
ht ©
201
9 b
y Bo
ston
Con
sulti
ng G
roup
. All
right
s re
serv
ed.
POSITIONED AS A LEADING INTEGRATED ENERGY PLAYER
POISED FOR GROWTH
Upstream Downstream
2018
Group formation
2019
Launch of OQ brand
2022
Block 65
2020
LiwaPlastics
Salalah LPG and Ammonia
Block 60 –Bisat
2023
Block30
GB LNG Bunkering
2025
Block47
2026
Duqm Petchem
2027
Block52
2028
DuqmRefinery
First Renewable
Energy Projects
First Retail project
Samahram
GB GTL
Pre FID
Our AspirationsPipeline includes many exciting projects for continued growth
12
Care Share Dare
Our Strategic PrioritiesProject delivery for 2020
Block 60Expansion
Achieve total working interest average daily
production of 24 kboe/day in 2020
DuqmPetchem
Progress tendering and
financing in support of a FID in
2021
Project
2020 Objective
ProjectSamahram
Complete detailed feasibility
study
GreaterBarik
FID of LNG Bunkering Project
SalalahLPG
Project completion and
commencement of commercial operations
LPIC
Project completion and
commencement of commercial operations
13
Care Share Dare
OQ Chemicals
Care Share Dare
OQ ChemicalsWorld Market Leader
• OQ Chemicals is an industry leader for products likePropanol, 2-Ethylhexanol, Butanol, Butyl Acetate and1,3 Butylene Glycol.
• OQ Chemicals is market leader for synthetic fattyacids in the C3 to C9 acid range.
• We have strong market positions in Europe and the US.
• We increase capacities to strengthen our marketposition and to support our customers’ growth.
• Our 1,000+ customers across different industriesguarantee our business stability and robustness.
No.1
15
Care Share Dare
TokyoNanjing
AmsterdamMarlOberhausenMonheim
HoustonBay CityBishop
Production Sites
Mexico City
Singapore
Bishopapprox. 35
Bay Cityapprox. 180
Amsterdamapprox. 25
Marlapprox. 70
Oberhausenapprox. 850
Nanjingapprox. 50
Chemicals FootprintOperations across the globe
16
Care Share Dare
2012
2013
2014
2017
2018
2019
2022
2026
Start up of new Specialty Esters unit #2 in Oberhausen
Start 1.3 BG capacity increase project in Bishop, USA
Revamp acid unit #2 to support growth strategy in animal feed business (Oberhausen)
Implementation of TCD-Diol Debottlenecking project in Oberhausen
Start up of new Propanol 2 in Bay City, USA
Rebranding as OQ Chemicals
Acid Debottleneck
Alcohol expansions in Bay City, USA
Start up of new Specialty Derivatives plant in Nanjing, China
Start up of new Carboxylic Acid unit #3 in Oberhausen
New TCD train
New Acid Train
Duqm Petchemplant
Strategic HighlightsContinuing investments to remain a market leader
17
Care Share Dare
Poly
ols
AldehydesAlcoholsEsters
EthylenePropyleneButeneHigher OlefinesNatural Gas
Raw materials Oxo-Intermediates Oxo-Derivatives
Process Process
Syngas
Hig
her
Ald
ehyd
es &
Spec
ialty
Der
iva
tives
Aci
ds
Spec
ialty
Est
ers
Am
ines
OQ products find many applications in everyday life
Value ChainFrom raw material to application components
18
Care Share Dare
Diversified product portfolio Applicable in a wide range of end-uses
Applications: Lacquers, Polymer Additives, Flotation Chemicals, Flavors & Fragrances
Oxo-Intermediates Oxo-Derivatives
Aldehydes
Applications: Lubricants, Siccative, Flavors & Fragrances, Polymer Stabilizers, Feed Additives, Corrosion Inhibitors
Alcohols
Applications: Chemical Intermediates, Cosmetics, Paints & Coatings, Printing Inks, Pharmaceuticals,Pharmaceuticals, Solvents
Esters
Applications: Chemical Intermediates, Flavors & Fragrances
Higher AldehydesApplications: High Solids Coatings, Powder Coatings, Cosmetics, Lubricants, Polymer Additives
Polyols
Carboxylic AcidsApplications: Agrochemicals, Rubber Chemicals, Polymer Additives, Pharmaceuticals, Surfactants, Dye Intermediates, Specialty Chemicals, Corrosion Inhibitors
Amines
Applications: Plasticizers, Lubricants, Coalescing Agents
Specialty EstersApplications: Plasticizers, Lubricants, Flavors and Fragrances, Surfactants
Higher Alcohols
Applications: Surface Coatings, Lacquers & Paints, Polymer Additives, Lubricants, Solvents, Disinfectants
19
Care Share Dare
• Lacquers & Paints• Lubricants• Printing Inks• Flavours & Fragrances
• Automotive & Transportation
• Industrial Goods• Construction & Real Estate• Consumer & Retail• Pharmaceuticals• Cosmetics• Print Media
• Propionaldehyde • n-Butyraldehyde • Isobutyraldehyde • n-Butanol• Isobutanol• n-Propanol• n-Propyl acetate • n-Butyl acetate• Isobutyl acetate • 2-Ethylhexanol
Oxo-Intermediates Oxo-Derivatives
OQ
Pro
duct
s
Aldehydes / Alcohols / Esters Carboxylic Acids Polyols Amines Higher Aldehydes Higher Alcohols Specialty Esters
• Propionic acid (AF)• n-Butyric acid (AF)• Isobutyric acid• Valeric acid (HP)• 2-Methylbutyric acid• 3-Methylbutyric acid• Heptanoic acid (HP)• 2-Ethylhexanoic acid• Pelargonic acid
(HP+ HALAL)• Isononanoic acid• Isopentanoic acid
• Lubricants• Siccative• Flavors & Fragrances• Polymer-Stabilizers
• Verbraucher & Einzelhandel
• Industrielle Güter• Kosmetika• Agrarindustrie• Verpackungen
Key
App
licat
ions
• 1,3 Butylene Glycol• TCD Alcohol DM• Neopentyl Glycol• TMP
• High Solids Coatings• Powder Coatings• Cosmetics • Lubricants• Polymer Additives
• Konstruktion & Immobilien
• Automobil & Transport
• Elektroindustrie• Kosmetika
End
mar
kets
• Propylamines• Butylamines• 2-Ethylhexylamines• n-Octylamine• Dimethylbutylamine
• Agrochemicals• Rubber Chemicals• Polymer Additives• Surfactants• Dye Intermediates
• Chemical Intermediates
• Flavours & Fragrances
• Performance Chemicals
• Agrochemicals• Flavours &
Fragrances
• Plasticizer• Lubricants• Coalescing Agent
• Agrarindustrie• Automobil & Transport
• Verbraucher &Einzelhandel
• Konstruktion &Immobilien
• Pharmazie• Printmedien
• Verbraucher & Einzelhandel
• Industrielle Güter• Verpackungen• Pharmazie
• Automotive & Transportation
• Consumer & Retail• Healthcare & Medical• Construction & Real
Estate• Cosmetics• Pharmaceuticals
• Lebensmittel-verpackungen
• Medizinische Geräte
• Konstruktion• Automobil
• n-Undecanal• n-Nonanal• 2 Ethylhexanal • C13/C15 Aldehyde• Isovaleraldehyde• Isononanal• Valeraldehyde• Propionaldehyde
• 2-Methylbutanol• 3-Methylbutanol• n-Heptanol• n-Nonanol• 3,5,5-
Trimethylhexanol (Isononanol)
• TCD Alcohol M
• OXSOFT 3G8• OXSOFT DUO 1• OXSOFT DUO 2• OXSOFT TOTM• OXSOFT TOTM ST• OXOSOFT GPO• OXFILM 351• OXLUBE L9-TMP
• Consumer & Retail• Industrial Goods• Cosmetics• Agriculture• Packaging
• Construction & Real Estate
• Automotive & Transportation
• Electronics Industry• Cosmetics
• Agriculture• Automotive &
Transportation• Consumer & Retail• Construction &
Real Estate• Pharmaceuticals• Print Media
• Consumer & Retail• Industrial Goods• Packaging• Pharmaceuticals
• Food Packaging• Medical devices• Construction• Automotive
Diversified product portfolio Applicable in a wide range of end-uses
20
Care Share Dare
Precursors Intermediates Derivatives(higher) Alcohols
Syng
as
Polyols Acids (Specialty) Esters Amines
C2
C3 Pro-pylene
Ethylene
C4
C8
Butene
Other Precursors
HigherOlefins
Aldehydes
n-Valeric Acid
Isobutyric Acid (AF)
n-Butyric Acid (AF)
2-EH-Acid
2-Methylbutyric Acid
2-Methylpentanoic Acid
Propionic Acid (AF)
Isopentanoic Acid
3-Methylbutyric AcidHeptanoic Acid (HP)
Pelargonic Acid (HP)
Isononanoic Acid (M)
1,3 Butylene GlycolTCD Alkohol DM
NPG
TMP
n-Propanol
2-EH
n-Butanol
Isobutanol
2-Methylbutanol
3-Methylbutanol
n-Heptanol
n-Nonanol
Isononanol
Higher Aldehydes
3-Methyl-butyraldehyde
2-Methyl-butyraldehyde
n-Valeraldehyde
Isobutyraldehyde
n-Butyraldehyde
Propionaldehyde
OXSOFT L9-TMP
n-/Isobutyl Acetate
OXSOFT 3G8
OXFILM 351
OXSOFT TOTM (ST)
n-Propyl AcetatPropylamines
2-EH-Amines
Butylamines
Other Amines
Integrated Production PlatformOverview of the process behind our products
21
Care Share Dare
The OQ day starts
Return home2.00 pm | Lubricants for aircraft turbine
Home project4.00 pm | Wall paint
Lunchtime12.00 pm | Refrigerator, food packaging, disinfectants
Manicure1.00 pm | Nail polish
Kids playing outside3.00 pm | Football, sole of a sports shoe, sun protection cream
Housekeeping11.00 am | Detergent, polishes andCleaning agents
Shopping10.00 am | Plastic bags, thermal paper(parking ticket), food packages
Bringing the car to a workshop9.00 am | Aluminum rims, tires, motor,Safety glass, cable and line systems
Having a shower8.00 am | Shampoo, shower gel, perfume
Watching a movie7.00 pm | Blu-ray / DVD
Yard work6.00 pm | Weeds-Ex, extension cablefor lawnmower
Break5.00 pm | Hand cream
A Day with OQ ChemicalsWe’re with you every hour of the day
22
Care Share Dare
OQ Chemicals in our daily lives: Automotive vehicles
• Butyraldehyde, Oxsoft 3G8: PVB safety glass liner
• Butyl Acetate: Automotive top-coat systems
• Trimethylol Propane: UV car coatings
• Neopentyl Glycol: Aluminum rims powder-coatings
• 2-Ethylhexanoic Acid, Di-n-Butylamine: Vulcanized rubber, adhesion promoters in tires
• Butanol: Acrylic water-based coatings
• TCD Alcohol DM: Touchscreen displays
• DOTP: Upholstery, seats, mats
• 2-Ethylhexanoic Acid: PU foam for dashboards & seats
• Isononanoic, 2-Ethylhexanoic Acids: Synthetic lubricants
• 2-Ethylhexanoic Acid: Coolants
• 2-Ethylhexanol: Cetane improver in Diesel fuel
Outside Inside of vehicle interior Motor compartment
1
2
3
4
5
6
7
8
9
10
11
12
1
23
45
678
9
10 1112
Average of ~7,5 kg of OQ chemicals in a car
23
Care Share Dare
10
2
3
4
5
6
7
8
11
12
13
14
15
16
17
18
1
16
17
15
13
14 1 93
6
5
87
114
12
Household Care
Building
Outdoors
2-Ethylhexanonic, Isononanoic Acids: Sun care products1,3-Butylene Glycol: Skin creamPropionaldehyde, Isovaleraldehyde, Heptanol, Isononanol, Undecanal: Perfume & fragrances
n-Butanol: Exterior architectural paints
2-Ethylhexanoic Acid:Interior architectural paints2-Ethylhexanoic, Isononanoic Acids: PVC window frames
Pelargonic Acid: Garden HerbicidesIsobutyraldehyde: Garden fertilizers
Valeric, Isononanoic, Heptanoic Acids: Jet turbine lubricants
Valeric, Heptanoic, Isononanoic Acids: Refrigeration system lubricants
Propanol: Disinfectants
Neopentyl Glycol: Appliance coatings
Pelargonic Acid: Detergents
2-Ethylhexanoic, Isononanoic Acids: PU flexible foams
2-Ethylhexylamine: Home pest control
Oxsoft TOTM: Cables
TCD Alcohol DM: Glass fiber, Blu-ray,
Pelargonic Acid: Auxiliary in food production
OQ Chemicals in our daily lives: Modern Living
9
2
10
18
24
Care Share Dare
Any Questions?OQ Chemicals GmbH
Rheinpromenade 4a40789 Monheim am RheinGermany
Tel. +49 2173 9993 0
www.chemicals.oq.com
25
Care Share Dare
Any Questions?OQ Chemicals Corporation
15375 Memorial Dr. Houston, TX 77079 USATel. +1346 378-7300
www.chemicals.oq.com
26
Care Share Dare
Any Questions?OQ Chemicals Nederland B.V.
Amsterdam Esters PlantHornweg 101045 AR AmsterdamThe Netherlands
Tel. +31 (0)20 448 9555Fax. +31 (0)20 613 55 34
www.chemicals.oq.com
27
Care Share Dare
Any Questions?OQ Chemicals Corporation
P.O. Box 1141Bay City. TX 77404-1141USA
Tel. +979 241 4000Fax. +979 241 4279
www.chemicals.oq.com
28
Care Share Dare
Any Questions?OQ Chemicals Bishop, LLC
P.O. Box 9Bishop, TX 78343USA
Tel. +361 584 6920Fax. +361 584 6934
www.chemicals.oq.com
29
Care Share Dare
Any Questions?OQ Advanced Derivatives Nanjing Ltd.
1204, New Century Plaza288 East Zhong Shan RoadNanjing. 210029P.R. China
Tel.: + 86 21 5451 0681Fax.: + 86 21 5451 0682
www.chemicals.oq.com
30
Care Share Dare
Thank you…
31