Total valid applications valued at N195 million have been received and are in the following categories:
Description
No.
Amount (Nm)
Institutional Investors
2
80.0
High Networth Individuals
10
115.0
Total
195.0
Target Returns on Investment
Period
Net returns on N300m (Nm)
ROI
%
Year 1
110.3
36.8
Year 2
220.5
73.5
Year 3
330.6
110.2
Year 4
439.3
146.4
Invitation to invest
What to invest in
Minimum Investment
You can benefit from the locked-in value in the largely untapped waste management market of the oil and gas sector by investing in the DVCF Waste Management Fund.
The Waste Management Fund promises to be a high yield investment with expected returns of over 280%.
Our survey result shows that significant tank cleaning and waste management budgets of the multinational oil companies lie idle yearly as there are no major operators in that area. The Fund therefore aims at pooling together resources from institutional and high net worth investors to track projects in waste management and sludge handling. Specifically, the funds will be invested in the acquisition of modern state-of-the-art tank cleaning equipments – the SuperMACS and Phaser 1000.
To participate, an investor is required to make a minimum investment of N10.0 million. The fund which is close-ended has a total size of N195million.
Before now tank cleaning, including the disposal of resultant sludge was not regulated. But with the increased environmental awareness and havoc caused by both fire incidents and disposal of the hydrocarbon sludge, government has developed and strengthened control and monitoring of tank cleaning and sludge disposal. The new government disposition is enshrined in Part I Section D, Articles 3.5.3 of the Environmental Guidelines and Standard for Petroleum Industry in Nigeria (EGASPIN : 2002). The structure of tank cleaning venture includes clients ranging from manufacturing plants (chemical storage tanks), drilling companies (mud and chemical storage tanks), producing companies (crude tanks) and refineries (crude, chemical storage tanks) to marketing companies (product tanks)
Potential Market:
Tank cleaning is currently dominated in Nigeria by unskilled companies that have no automated plants and equipment. The scale and method of operation is small, manual, time consuming and very risky. For these reasons, many tanks in Nigeria have not been cleaned since construction resulting in under capacity utilization. The manual operation has made tank cleaning a risky and time-costly exercise putting prospective clients (tank owners) off.
Presently the oil companies as aggregate have a challenge of over 200 tanks due for cleaning. The budget has been there for over two years. Tank cleaning and drill cutting management are principal operations critical for sustainable performance in the oil & gas industry in Nigeria. The trend is well established in the drill cutting waste management as Thermal Desorption technology has been fully accepted in the last two years and also plants fabricated in Nigeria.
Tank cleaning stands to be a “virgin engineering business” to venture into that guarantees quick return on investment (ROI) because no technology has assumed the created vacuum (due to the new guidelines) in the tank cleaning operations and sludge management (that is before now incinerated at best). The engineering business has the following prospects:
Potential Clients and Executable Projects:
Major Oil Producing companies (SPDC; AGIP; ELF; EXXONMOBIL; TEXACO & CHEVRON) having about 2-3 tank farms consisting of about 10-15 tanks each. These are used for crude oil storage. Capacity: diameter ranging from 68-81m; height ranging from 16.5-18.5m. They are referred to as big capacity tanks (BCT)
Refineries (4nos in Nigeria) contributing about 70 BCT
Marketers (principally PPMC) with over 15 depots consisting of 8-12 BCT
Assumptions:
Quantity of big capacity tanks (BCT)= 200numbers
Number available for cleaning per year= 2 tanks (worse case scenario)
Sludge yield per cleaning operation BCT= 2500 cubic meters
Cost: Tank Cleaning for BCT= $1,200,000
Sludge treatment & disposal= $300 per MT
Projected yearly turnover:
Tank Cleaning: 2* $1,200,000= $2,400,000
Sludge treatment and disposal= 2*2500*$300= $1,500,000
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Total Yearly Turnover $3,900,000
DVCF Oil & Gas Positions for the Market:
There are proven commercial tank cleaning facilities in the United States of America. We have procured a $4million SuperMACS and Phaser 1000 Tank Cleaning Equipment from American Cleaning Technology Incorporated ACTi also known as 3i. The facilities are with design process that consists in treating the oil bottom sludge of storage tanks (crude oil, fuel, oil, slop etc). This tank cleaning process allows recovering most part of the hydrocarbons that are present in the bottom sludge (more than 90%), to reduce significantly the clean up costs such as the amount of sludge to be disposed in comparison with the traditional technologies. This tank cleaning technology is directed to provide a profitable solution for the bottom sludge management in the oil industry.
The Phaser 1000 is a stand alone, heavy solid extraction and processing system. Self powered and scroll centrifuge system, it can be fed on two independent sources on the SuperMACS, or by utilizing auxiliary pumps that may be powered and controlled by one of its three auxiliary hydraulic circuits. The heart of the Phaser 1000 solid concentration is a two phase scroll centrifuge. The purpose of the centrifuge is to extract all of the sedimentary solids from the influent stream that has passed through the respective Sweco separators. The Phaser 1000 measures 42*8*13.5 feet and weighs approximately 62,000 pounds.
