Untitled

2013 Figures

CONTENTS INTRODUCTION Strategic Growth Our History Key Figures A Global Business

3 5 6 8 13

APPROACH, CULTURE & VALUES Our People Risk Management Compliance SHE Logistics Technology Finance

14 17 18 19 20 22 23 25

TRADING A Physical Trader Crude Oil Refined Products & Energy Metals & Bulk

26 29 30 32 36

ASSETS & INVESTMENTS Terminals Refineries Pipelines & Storage Mining Upstream

38 40 48 54 56 64

US $91 billion TURNOVER

131 million MT VOLUME

~US $2 billion VALUE OF INDUSTRIAL ASSETS

Gunvor Group is one of the world’s largest independent commodities trading houses by turnover, creating logistics solutions that safely and efficiently move physical energy, metals and bulk materials from where they are sourced and stored to where they are demanded most. With strategic investments in industrial infrastructure—refineries, pipelines, storage, terminals, mining and upstream—Gunvor further generates sustainable value across the global supply chain for its customers.

GUNVORGROUP.COM | @GUNVOR

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Strategic Growth Gunvor has evolved strategically to become one of the world’s leading independent commodities trading houses. We trade across a diversified portfolio, operate in more than 35 countries, and possess an industrial asset base valued in excess of US $2 billion.

Shanghai 4

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2009

2010

2011

US $ 91 billion

Dubai

US $ 93 billion

Nassau

Our investments and wholly-owned assets provide greater control over commodity sourcing and distribution, create a foundation for diversified income streams, and give us a significant competitive advantage in the worldwide marketplace.

Revenue US $ 87 billion

Singapore

While Gunvor remains a physical trader at heart, we have strategically invested in upstream, midstream and downstream assets to create a platform for international expansion. Today, Gunvor serves an important role in helping to smooth worldwide energy markets. We source crude oil and refined oil products from more than 35 countries, have industrial assets worth in excess of US $2 billion, and work with more than 70 global financial institutions, balanced across Asia-Pacific, the Americas, the Middle East and Europe.

$91 billion US $ 69 billion

Geneva

G

Gunvor had 2013 revenue of

US $ 50 billion

GLOBAL

unvor was founded in 2000 as a merchant of crude oil and oil products. From the very beginning we differentiated ourselves by committing to long-term business relationships and the application of innovative trading solutions. By combining our regional market knowledge with global logistics we have earned a reputation for reliably acquiring, marketing and moving energy commodities from areas of surplus to those with greatest demand.

2012

2013

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Our History 2000: Founded to trade crude oil from the Gulf of Finland

2005: Increased global diversification of trade flows

2003: Established head trading office in Geneva, Switzerland

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2008: Made first asset investment, Ust-Luga Oil

2007: Opened trading office in Singapore

2009: Opened trading office in Nassau, Bahamas

2009: Added trading desks for coal, natural gas, biofuels and carbon emissions

2011: Opened trading office in Dubai, UAE

2011: Made first coal mining investment, Signal Peak Energy

2013: Listed inaugural bond on Singapore Exchange (SGX)

2012: Acquired refineries in Belgium and Germany

2013: Opened trading desk for metals

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Key Figures NUMBER OF COUNTRIES SOURCING CRUDE OIL & PRODUCTS

NUMBER OF BARRELS OF CRUDE OIL & PRODUCTS TRADED DAILY

GLOBAL BANKING PARTNERS

8

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>35 2.5 million >75

YEAR COMPANY WAS FOUNDED

NUMBER OF EMPLOYEES WORLDWIDE

CONSECUTIVE YEARS OF PROFITABLE OPERATION

2000

ACTIVE

~ 1,600

Africa Americas Asia

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Europe Middle East

9

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discover more

PIPELINE & TERMINAL Baltic Sea, Ust-Luga

SERVICES Tallinn, Estonia OFFICE Amsterdam, The Netherlands

COAL MINING Roundup, Montana

TERMINAL Black Sea, Novorossiysk

REFINERY Antwerp, Belgium

UPSTREAM Lagansky Block, Caspian Sea

COAL MINING Neryungri, Russia

REP OFFICE Ulaanbaatar, Mongolia REP OFFICE Almaty, Kazakhstan

REP OFFICE Beijing, China

REFINERY Ingolstadt, Germany

TRADING OFFICE Geneva, Switzerland

REP OFFICE Shanghai, China JOINT VENTURE Tashkent,Uzbekistan

TRADING OFFICE Nassau, The Bahamas OFFICE Nicosia, Cyprus

REP OFFICE Abuja, Nigeria

TRADING OFFICE Dubai, United Arab Emirates TRADING OFFICE Singapore

PIPELINE David, Panama

Gunvor’s main trading centers are in Geneva, Singapore, Nassau and Dubai. We also operate through service centers, representative offices and branches throughout the world.

Gunvor’s activities along the energy supply chain and physical presence throughout the world provide detailed insights into the nature of the marketplace locally, regionally and globally. Such information supports our ability to identify and capture trading opportunities and enhances our business profitability. Wherever we operate we establish long-term partnerships based on transparency and mutual respect. We aim to share expertise, provide training and build local capabilities so that our trading and investments deliver benefits to the people, communities and businesses we partner with and serve.

TERMINAL Karimun, Indonesia

REP OFFICE Bogotá, Colombia

Map & Locations

A Global Business

COAL MINING Johannesburg, South Africa REP OFFICE Buenos Aires, Argentina

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Approach, Culture & Values To support our commercial activities we created an organizational platform founded on talented people who ensure operational excellence, precise risk management, and meticulous financial controls. Through all our endeavors we maintain the very highest standards. Gunvor values health, safety and the environment, employee rights, compliance with local and international laws, and being a committed partner to governments and communities.

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~1,600 EMPLOYEES

~500 ~500 ~600

Our People Innovative and dedicated. Pragmatic and responsible. The talented people we employ at every level and in each part of our business align growth and profitability with a commitment to good corporate governance.

G

unvor attributes our continuing growth and success to our employees, who provide a tremendous level of commercial and technical expertise across the global energy markets. They are dynamic and engaging, and strive for the opportunities Gunvor provides for growth and development. They further maintain the highest levels of integrity.

TRADING SPECIALISTS

Gunvor is very selective and our standards of performance are high. We encourage creativity and independence, and strive to maintain a diverse working environment. Our more than 20 facilities and operations are run primarily by local management, who provide keen market intelligence and analysis. They are complemented by staff with high strategic value.

TERMINAL OPERATORS

We further believe in developing individuals who have the professional and interpersonal skills to help drive our continuing success. We offer opportunities for professional and personal development, and enable employees to take ownership of their personal growth.

To help foster the next generation of trading talent, Gunvor supports the Masters degree in International Trading, Commodity Finance & Shipping, which is run by the University of Geneva in collaboration with the GTSA (Geneva Trading and Shipping Association).

REFINERY WORKERS

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>75

Number of Global Banking Partners

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Risk Management

Compliance

Our ability to effectively manage the risk inherent in commodities trading is fundamental to Gunvor’s continued development and stability. It contributes to our positive financial performance and helps mitigate earnings volatility.

The regulatory landscape in which Gunvor operates is becoming ever more consistent, comprehensive and transparent. We wholeheartedly support such developments and are proactive in refining our procedures to ensure compliance.

F

inancial, operational and market risks are an integral element of commodities trading and physical supply. They cannot be wholly avoided, but can be planned for and managed. Gunvor maintains sophisticated risk management systems, processes and controls. Risk policies are determined centrally, exposures are analyzed daily, and our procedures are continuously reviewed and updated. Gunvor applies a range of risk management tools to minimize overall exposure at any one point in time. These include: •

Financial derivative instruments to hedge commodity price and foreign currency exchange rate risks

•

Insurance to hedge various operational risks including freight-related and political risks

•

Due diligence prior to acquisition and good management after acquisition to hedge environmental risks

•

Ready access to sufficient capital and funding to hedge liquidity risk

•

Strict policies and procedures to hedge counterparty relationships, fraud and regulatory risks

B

eing a physical energy trader, Gunvor is subject to oversight from more than 70 regulatory authorities worldwide. Virtually every aspect of our business is affected to a greater or lesser degree by regulations covering health and safety, insurance, emission and environmental control, product, cargo and financial crime, international trade and sanctions, and banking, exchange and derivatives market rules. To ensure compliance within such an extensive and constantly evolving regulatory environment, we maintain rigorous corporate protocols and a strict compliance program. This activity is overseen by our Compliance Department, which provides oversight, advice and training for Gunvor trading centers worldwide. In all operations, Gunvor adheres to the laws and regulations to which it is subject, both international and local, in the jurisdictions in which it operates.

Gunvor is proactive in addressing evolving compliance standards. This includes taking steps to strengthen contract language with counterparties to enhance contractual prohibitions against trading with countries and entities under economic sanctions.

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Safety, Health, Environment

0%

Zero Incident Goal:

no accidents and no damage to the environment

Gunvor assigns the highest priority to preserving the health, well-being and safety of our people, our customers and communities affected by our operations; as well as respecting and protecting the environment in the countries within which we do business. We aim for a zero incident approach: no accidents, protection of our staff and no damage to the environment.

A

t Gunvor, we are committed to the following principles and expect all who work in our business to act in accordance with them:

Prevention of Injuries, Incidents & Occupational Illnesses We believe that injuries, incidents, and occupational illnesses are preventable and that incident and near miss reporting and investigation are of fundamental importance in their prevention. Promoting Environmental Protection By operating our business in the most efficient way we work to reduce the impact on the environment and the local communities that surround our operating entities. Our aim is to work in harmony with our surroundings and to provide economic benefit to local communities, our customers and suppliers.

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Compliance with Laws, Regulations & Gunvor Standards We have clear safety, health, environmental, human rights and community expectations within our corporate governance structure. All Gunvor entities are required to adhere to these corporate expectations and to comply with all applicable laws and regulations. We also aim to promote Gunvor expectations across our supply chain, where possible. Learning We have programs in place that encourage learning from incidents. Although we are promoting a zero-harm vision, we understand that incidents can happen, but will do all that we can to avoid their repetition. Continuous Improvement & Commitment High standards required in all areas of safety, health and environment require continuous improvement and commitment by everyone.

Gunvor maintains clear safety, health, environmental, human rights and community expectations within our corporate governance structure.

Auditing, Monitoring & Corrective Action We are committed to setting objectives and targets, auditing, monitoring, sampling and implementing corrective actions to ensure full compliance with our corporate expectations. Personal Responsibility We all have a personal responsibility to prevent harm to ourselves, others, and the environment. Safety, good health and concern for the environment are equally important away from work and are encouraged.

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Tankers

VLCC, oil products floating storage

vessels,

Dry-bulk

Capesize, Panamax and PostPanamax vessels

Logistics

Technology

Our logistics team operates seamlessly with our trading desks to manage freight exposures and to add safety and efficiency to our physical transactions.

Information and Communications Technologies (ICT) provide a secure, integrated global platform critical to Gunvor’s business and related operations.

G

unvor has ready access to logistics assets worldwide, including a large fleet of time-charter vessels, freight, transport, storage and blending facilities. These give us the capability to respond effectively to market trends and create added flexibility for realizing arbitrage opportunities. An important aspect of our logistical resource is Clearlake Shipping, a wholly-owned Gunvor entity and one of the largest charterers of tanker vessels in the world. Clearlake Shipping operates around a fleet of high quality tankers, gas carriers and dry-bulk vessels to accommodate our needs and also those of third-party customers. Reflecting our concern for the environment, we only ever use double-hulled vessels that are less than 20 years old.

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O

ngoing investment in state-of-the-art ICT ensures our global strategies and initiatives are supported in an efficient and secure manner.

Gunvor maintains a number of advanced information systems serving our core business and supporting functions, including Risk, Trading and Financial systems, which consolidate trading positions and financial exposures globally on a daily basis. These allow management to monitor Gunvor’s overall exposure and adopt appropriate measures on a timely basis. Our operations- and assets-related activities are supported by an array of specialist applications, enabling global functions to work harmoniously regardless of location.

Gunvor employs a range of globally consistent corporate systems to support its core business. These include systems for commodities trading, risk and credit management, finance, shipping and operations, compliance and user collaboration.

Information security policies are upheld by the deployment of advanced data security systems and secure data centers that protect data assets globally. Our IT infrastructure is highly resilient with no single point of failure and we have back-up systems and procedures for every degree of disruption.

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Jet Oil Gasoline

LPG Naphtha Natural Gas + LNG Power

Gasoil

Volumes Traded

Finance

Biodiesel Coal

Central to the success of our business are the longterm relationships we have built within the global finance sector. Gunvor is known and trusted for its pragmatic, carefully structured approach to financial management.

Crude Oil

Fuel Oil

Middle East

Europe

North America Other Russia

Revenues by Region

South America

F

rom inception, Gunvor has been successful in building long-term relationships in the financial sector and diversifying its banking partnerships. Today we work with more than 70 leading global financial institutions. As a growing business with interests throughout the world, Gunvor has always sought to establish local partnerships for its investments, such as establishing an independent revolving credit facility specifically for Asia, and creating borrowing bases in the Middle East and the Americas to finance trading operations in those regions. Such an approach has benefited our year-on-year profitability and enabled us to increase credit lines even through the global financial crisis. Our culture is one of financial prudence. We maintain a strong liquidity position and our assets are optimally financed.

Gunvor was the first trading house to establish a factoring program as means of diversifying financial support for oil refining operations. The deal, which was established with GE Capital for our Ingolstadt refinery, was the largest single receivable finance program in Germany.

Africa Asia

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Trading Trading is at the heart of Gunvor’s business. We have expanded our trading portfolio to include the global sourcing and delivery of crude oil and refined oil products, LPG, natural gas and LNG, coal, biofuels, carbon and metals. From our main trading offices in Geneva, Singapore, Nassau, Dubai and Shanghai, we originate and implement physical, single and multi-commodity trading solutions that create value and commercial advantages for our customers and counterparties.

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Precious Metals

Middle Distillates

Thermal Coal

Gasoline

Coking Coal

Naphtha

Iron Ore

•

Geographic—Our relationships and logistical capabilities enable us to source physical commodities and deliver them to locations where they command higher prices.

•

Product-based—Through blending or the multi-use characteristics of certain commodities, such as refined petroleum products, we create added value products that command returns higher than the sum of their constituent parts.

•

Time-related—Utilizing our storage assets, financial skills and cost controls we create and realize margins on agreed forward prices.

LPG Biofuels Natural Gas & LNG Power & Emissions

We have expanded our trading volumes year-on-year in line with our diversification across a range of commodities traded and our strategic investments in upstream, midstream and downstream assets.

131 million MT

of physical energy worldwide— equivalent to the whole annual energy consumption of a country the size of Germany or Brazil.

Volumes

2009

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2010

2011

2012

131 million MT

Heavy Fuel & Feedstocks

In 2013, Gunvor moved approximately

130 million MT

Industrial Metals

G

unvor’s success as a physical commodities trader is built upon a foundation of excellence. We combine the core competencies of marketing, logistics, financing, risk management and compliance with the knowledge and insights gained from sustainable supplier and customer relationships. Leveraging this foundation enables us to identify and realize arbitrage opportunities in the global commodities marketplace:

122 million MT

TRADING

Refined Products & Energy

Gunvor moves commodities from where they are sourced or stored to where they are demanded most. The trust of our customers is based upon our proven record for creating trading solutions that mitigate risk while safely and efficiently delivering quality, convenience and value.

116 million MT

Metals & Bulk

A Physical Trader

98 million MT

Crude Oil

2013

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Gunvor is one of the largest crude oil traders in the world. We offtake crude oil from producers of all sizes and manage its trading, storing, financing and supply to counterparties and clients. Our physical availability continues to expand and diversify, and Gunvor consistently trades more than a million barrels a day.

Crude Oil

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unvor has crude oil trading specialists in offices around the globe—with our primary trading operations in Geneva, Singapore, Nassau and Dubai. They have first-hand knowledge and expertise in the markets, maintain long-term relationships with key market participants— producers, refiners, logistics companies and storage experts —and are actively involved in developing projects related to existing and new crude oil flows.

• Effectively managing market risk

Gunvor’s acquisition of two refineries has created greater opportunities for us to further diversify our crude oil portfolio. Our Antwerp refinery, for example, is able to use a very flexible range of feeds, and provides Gunvor with the option to source and process crudes otherwise previously commercially impracticable.

• In-house market intelligence and analysis

• Long-term relationships in key global markets • Expertise in identifying physical dislocations in the market • Extensive logistics capabilities

• Ownership of key physical assets that complement trading • Ability to structure or pre-finance deals

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Refined Products & Energy

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A

s Gunvor has expanded globally, we have also broadened our trading portfolio into new commodities. From crude oil, we began trading in refined petroleum products, including gasoil, fuel oil, gasoline, naphtha and LPG. Gunvor then further expanded into natural gas, liquefied natural gas (LNG), biofuels, power and carbon emissions. Gunvor’s proven trading model and relationships in the finance sector have enabled our continued and successful expansion.

• Heavy Fuel & Feedstocks • Middle Distillates • Gasoline • Naphtha • LPG • Biofuels • Natural Gas & LNG • Power & Emissions

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Heavy Fuel & Feedstocks

LPG

Middle Distillates

Biofuels

With access and ownership to storage and blending equipment in hubs around the world, Gunvor is able to respond quickly to all kinds of demands for low and high sulphur bunker, as well as for heavy fuel for power generation from 0.3% to 3.5% of sulphur content.

Middle distillate trading represents a central aspect of Gunvor’s trading portfolio. Gunvor trades a full range of middle distillates, including heating oil, diesel and jet.

Gasoline

The biofuels trading desk is one of the most successful ventures of Gunvor’s portfolio. The company combines its blending expertise, risk management capabilities and global logistical coverage to meet customers’ needs with tailormade offers in a wide range of locations.

Natural Gas & LNG

Gunvor’s blending, storage and logistics capabilities enable us to take advantage of arbitrages that arise from often-significant price differentials that exist between or even within various countries.

Gunvor is an established player in the principal European gas markets, both physical OTC and exchange-traded. We secure medium to long-term contracts and partnerships for access to pipeline gas production, transportation and storage, as well as LNG supplies and LNG shipping and regasification infrastructure.

Naphtha

Power & Emissions

Gunvor is one of the leading naphtha traders worldwide. Our secured access to storage capacity in the main ports in which we source volumes provides a significant advantage in terms of flexibility.

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Gunvor is a long term leasor of the largest refrigerated LPG import terminal in Europe, which during 2014 will be expanded by 20 percent capacity. We supply into the European market well over 500kmt of LPG per year. We have long-term contracts for U.S. LPG from new shale gas production, which we trade worldwide.

Gunvor is involved in both origination and trading of carbon emission units. These activities are part of the Kyoto Protocol and the European Union Emissions Trading System.

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Industrial Metals

Gunvor’s industrial metals team operates out of Singapore and Shanghai, trading Copper, Aluminum, Zinc, Lead, Tin, Nickel and Manganese (in refined and raw materials), and Steel.

Precious Metals

Metals & Bulk

B

uilding on the company’s global reach, Gunvor has become a leading trader in Metals and Bulk Materials through off-takes, purchases and marketing arrangements with producers worldwide. Our commercial supply and marketing expertise is complemented by our ability to provide our partners with access to prefinancing solutions across all deal types. Gunvor’s established risk management capabilities further ensures timely and creative solutions to meet our customers’ needs.

Operating out of Singapore, Gunvor supplies customers with risk management, physical purchasing and sales, and market information. Our trading team has deep experience in the global financial and capital markets, and we maintain a network in precious metal trading around the world.

Thermal Coal

Coal is a central aspect of Gunvor’s long-term diversification and growth strategy. In 2009, the company began trading coal and in 2011 began investing in coal mines around the world, including in the United States.

Coking Coal

Primarily used in steel production, coking coal has long been a central part of Gunvor’s coal trading business. Gunvor trades around its own investments in coal mining operations; we also work with producers throughout the world.

Iron Ore

As a complementary product to our established coal trading, iron ore has become a significant part of Gunvor’s trading portfolio. We trade a range of iron ore products and grades, including fine, low-grade and high-grade lump, pellet feed and pellets. 36 GUNVORGROUP.COM | @GUNVOR

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Assets & Investments Gunvor invests in downstream, midstream and upstream assets that strategically complement our daily trading activity, and today maintains a global asset portfolio encompassing upstream production, coal mining, terminals, refineries, pipelines and storage facilities. These assets enable Gunvor to enhance our control over the sourcing and distribution components of our trading platform, diversify our income streams and strengthen our competitive position.

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Terminals

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T

erminals are the most complementary asset investment for our trading activities. They provide ready access to physical energy flows from diverse sources and so enhance our trading positions, while the availability of storage and vessel berthing create time spread and crossgeography arbitrage opportunities. Blending and segregated storage enable us to add further value through the provision of export grade specifications.

• Ust-Luga Oil • Novorossiysk Fuel Oil • Oiltanking Karimun

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STORAGE CAPACITY:

~960,000 m³ Ust-Luga

Ust-Luga Oil

The largest rail-ocean trans-shipment terminal in the world.

G

unvor managed the construction of the Ust-Luga Oil products terminal as a whollyowned greenfield project. It has a projected capacity of more than 30 million metric tons per annum and is considered to be the largest railocean trans-shipment terminal in the world. Operations commenced with fuel oil trans-shipments in 2011. The terminal produces a material stable earnings stream and significantly enhances our logistics capabilities for the transportation of refined petroleum products exported from Eastern Europe. It is currently being further developed to provide additional flexibility for trans-shipping a range of light and dark products, including ultra-heavy fuel oil.

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TANKERS CAPACITY:

up to 300,000 DEADWEIGHT TONS

RAIL TRANS-SHIPMENT CAPACITY: SIMULTANEOUSLY DISCHARGE

four 72-rail TANK CAR TRAINS

NUMBER OF JETTIES:

3

MAXIMUM BERTH:

ca. 330 m

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THROUGHPUT CAPACITY:

4 million

Novorossiysk

METRIC TONS

STORAGE CAPACITY:

119,000 m³ Istanbul

Novorossiysk Fuel Oil

Adding distribution flexibility for shipments to Mediterranean countries and beyond.

T

he Novorossiysk Fuel Oil Terminal, located on the Black Sea, provides an alternative southern export route for East European fuel oil. It complements storage that Gunvor holds in the region. The terminal and storage enable economies of scale for freight by facilitating product reloading to larger vessels including Suezmax tankers. These larger vessels deliver to customers worldwide.

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TANKER CAPACITY:

up to 47,000

DEADWEIGHT TONS

SPEED OF LOADING:

2,500 m³/hour

NUMBER OF JETTIES:

2 parallel 250-meter jetties MAXIMUM BERTH:

one offshore berth

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COMPLETION DATE:

Oiltanking Karimun

Providing a cost effective alternative to petroleum storage in Singapore.

Singapore

G

unvor, in collaboration with Oiltanking GmbH, is undertaking construction of a terminal facility on a greenfield site on the island of Karimun in Indonesia. The Oiltanking Karimun terminal development is strategically significant in that it will provide an alternative to tightening petroleum storage in Singapore. Karimun lies in close proximity to Jurong Island, Singapore’s industrial petroleum and petrochemical hub, and also to existing ship-to-ship operations off the coast.

2015

STORAGE CAPACITY:

750,000 m³ TANKERS CAPACITY:

up to VLCC NUMBER OF JETTIES:

4

The facility will have an initial petroleum storage capacity of 760,000 cbm and will cater for the storage and handling of both light and black oil products. It will be managed and operated by Oiltanking as an independent commercial storage operation.

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Refineries

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R

efineries complement Gunvor’s trading function by creating greater operational efficiency across the supply chain. We leverage our expertise and relationships with crude suppliers to gain access to the types of crude oils processed at our refineries. Gunvor is further investing in our refinery acquisitions, with the goal of achieving operational excellence by keeping Safety, Health and the Environment (SHE) a priority in how we build for the future.

• Independent Belgian Refinery • Gunvor Refinery Ingolstadt

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107,500

CAPACITY:

BARRELS / DAY

NELSON INDEX:

Independent Belgian Refinery

Ideally located in the ARA hub to optimize our logistics and trading.

Antwerp

T

he Independent Belgian Refinery, 100% owned by Gunvor, is situated in the north of the Port of Antwerp. Its location enables us to apply our trading and logistical expertise to optimize its crude slate and maximize product arbitrage opportunities to the most profitable markets at any given point in time. The refinery’s large storage capacity and the flexibility of its installations give us capabilities to handle a wide range of both intermediate and finished products including LPG, naphtha, gasoline, heating oil, VGO and bunker grades.

4.5

DETAILS:

visbreaker as the only residue conversion unit EMPLOYS:

210

CORE EMPLOYEES AND ADDITIONAL CONTRACTORS STORAGE CAPACITY:

1,100,000 m³

Crude oil is delivered with direct access to a jetty. Products can be loaded on tankers for onward worldwide delivery or on to barges and road trucks for local delivery to the North West European market. 50 GUNVORGROUP.COM | @GUNVOR

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110,000

CAPACITY:

BARRELS / DAY

NELSON INDEX:

Ingolstadt

Gunvor Refinery Ingolstadt

Securing product supplies for land-locked European customers.

G

unvor Refinery Ingolstadt (GRI) is a 100% owned inland refinery operating in a niche market. Crude oil supply arrives via the TAL pipeline system, a 753-kilometer pipeline connection from the marine shipping terminal in Trieste, Italy. Products are shipped from the on-site truck-loading rack and railcar-loading facilities. This enables a stable distribution into the local markets. Light products and middle distillates such as gasoline, diesel, heating oil and jet fuel are sold predominantly in Germany and Austria.

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7.3

DETAILS:

2 crude units, a fluid catalytic cracker and the capability to produce bitumen EMPLOYS:

500

TOTAL ON-SITE WORKERS INCLUDING 320 CORE EMPLOYEES SITE:

128

HECTARES

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Nevskaya Pipeline Company Gunvor maintains a 50 percent ownership stake in Nevskaya Pipeline Company, which owns a 4 kilometer pipeline connecting Gunvor’s jetty on the Baltic Sea to Transneft’s crude oil tank farm, which is at the end of Transneft’s BPS-2 pipeline. The pipeline’s full nominal throughput capacity ranges from 20 to 25 million metric tons per year. NPC has throughput agreements in place with major oil producers.

THROUGHPUT CAPACITY:

20-25 million

METRIC TONS PER YEAR

Transalpine (TAL) Pipeline

Pipelines & Storage Investments in pipeline and storage assets provide us with the logistical flexibility to efficiently place different crude grades into various markets, enabling us to quickly take advantage of arbitrage opportunities.

Gunvor has a minority stake in the Transalpine Pipeline (TAL). This is of strategic importance in securing supplies to the land-locked Gunvor Refinery Ingolstadt in Germany. The 753-kilometer pipeline connects the Port of Trieste in Italy (via Italy, Austria and Germany) to the German states of Bavaria and Baden-Württemberg. TAL is managed to ensure that each refinery connected to it receives the required quality and quantity of oil at the scheduled times.

753 km LENGTH:

CONNECTING:

Port of Trieste, Italy, to northern Germany

Petroterminal de Panama Gunvor holds a minority stake in Petroterminal de Panama. The company’s primary asset is a pipeline with a 600,000 barrels per day throughput capacity that links the Pacific and Atlantic oceans. There are also storage locations at both ends of the pipeline with a total of around 9 million barrels split approximately equally between the two coasts. The pipeline offers a shortcut for crude cargoes around Latin America and an alternative to the Panama Canal. It gives us increased sourcing opportunities, a market presence in the Americas and access to additional storage capacity. 54 GUNVORGROUP.COM | @GUNVOR

THROUGHPUT CAPACITY:

600,000

BARRELS PER DAY

9 million

BARRELS STORAGE

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Mining

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C

oal is a central aspect of Gunvor’s long-term growth strategy. Massive increases in electricity generation capacity are expected for emerging markets, which will only be possible with a significant contribution from coal—a fact that is particularly true for China, India and Central Asia. Gunvor’s coal assets are well positioned to supply these markets. We also maintain a full portfolio of offerings, including high quality steam coal, coking coal and anthracite.

• Keaton Energy • Kolmar • Signal Peak Energy

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Keaton Energy

Mining specialist coals in South Africa for domestic and export markets.

K

eaton Energy, in which Gunvor holds a significant stake, is a South African coal exploration, development and mining company whose shares are listed on the Johannesburg Stock Exchange. It produces thermal coal for supply to South Africa’s Eskom electricity utility and a range of specialist coals for the domestic and export metallurgical industries. The company’s assets include two operating collieries, Vanggatfontein and Vaalkrantz, two development projects, Sterkfontein and Braakfontein, and an exploration pipeline. Two of the three seams mined at Vanggatfontein contain thermal coal, while the third seam contains coking coal. The coal extracted at Vaalkrantz is anthracite.

EMPLOYEES:

1,200

251.4 million RESOURCES:

METRIC TONS

RESERVES:

95.9 million METRIC TONS

Johannesburg

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Neryungri

Kolmar

Well positioned for coal exports into the Asian marketplace.

G

unvor holds a significant stake in the Kolmar coking coal mining and processing company located in the Sakha Republic of the Russian Federation. It operates several mines in the East Siberian Chulmakan and Denisovsky coalfields and has licenses for open pit and underground mining production. A significant investment program to expand the existing operating mines and develop new mines is underway. Current expectations are that this will increase coking coal extraction to approximately 12 million metric tons by 2020. Kolmar is well positioned to serve the Asian coal market. It has good connections to the rail infrastructure in Eastern Siberia and the Russian Far East and also to ports on the Russian Pacific coast, including Nakhodka and Vanino.

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EMPLOYEES:

~1,400 >1 billion tons RESOURCES:

OF HIGH-QUALITY COKING COAL

RAW RECOVERABLE RESERVES (UNDERGROUND):

431 million

METRIC TONS

RECOVERABLE RESERVES:

670 million

METRIC TONS

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Roundup, Montana

Signal Peak Energy

Improving production to better serve North American and Asian customers.

T

hrough our U.S. subsidiary, Pinesdale LLC, Gunvor holds a significant stake in Signal Peak Energy. This is a high Btu thermal coal mine with an extensive 30 year coal reserve plus secured rail and port access. Investments in the mine have improved management, safety and production efficiency to the extent that it now has one of the lowest production cost bases relative to U.S. competitors. As part of a joint ownership group with Boich and First Energy, Gunvor’s trading expertise adds considerable value to the mine. Ownership of the mine enhances our competitive position in the Asian market. Signal Peak Energy serves the U.S. domestic market and customers in Asia via transport links to ports on the U.S. and Canadian western seaboard.

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EMPLOYEES:

330

7 trains MAXIMUM CAPACITY:

PER DAY OF 120 TO 150 CARS

RAW RECOVERABLE RESERVES (UNDERGROUND):

431 million METRIC TONS

RAW RECOVERABLE RESERVES (SURFACE):

109 million METRIC TONS

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Lagansky Block We hold an indirect interest in the Lagansky Block license through a joint venture with Lundin Petroleum AB. Acquired in 2009, it was our first investment in oil exploration.

Upstream Gunvor has made select investments in exploration, appraisal, development and production assets as a part of its strategy of diversifying along the energy supply chain. Our expertise in both finance and the oil and gas sector contribute to the realization of overlooked or undervalued upstream opportunities.

The Lagansky Block is an offshore area located in the Russian sector of the Caspian Sea. Contained within the license area is the Morskoye discovery, which has best estimate gross contingent resources of 157 MMboe.

AREAS OF ACTIVITY:

Lagansky Block, Caspian Sea

PA Resources

To increase the scope and geographic diversity of our upstream capabilities we have made a strategic investment in PA Resources. PA Resources is an international oil and gas group that conducts exploration, development and production of oil and gas assets. It already operates in Tunisia, the Republic of the Congo (Brazzaville), Equatorial Guinea, the United Kingdom, Denmark, the Netherlands and Germany and has proven oil production in West and North Africa.

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157 MMboe KNOWN RESERVES:

LICENSES:

21 oil and gas: 7 production & 14 exploration AREAS OF ACTIVITY:

North Sea North Africa West Africa

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