Global Oil Storage Terminal
Executive Summary
Global Oil Storage Terminal plans to invest in a storage terminal with total capacity of up to 8,000cbm in district of Liquica, Timor Leste. The storage tanks has been calibrated in anticipation of the demand and growth of the country.
The objective of this storage terminal is to provide a one stop service for petroleum products, such as low sulphur diesel, gasoline, lubricants, bitumen. In addition, we will embark on setting up the first biofuel production facility in Timor Leste. This is in line with the country’s plan to lower the emission of green house gas in the future. Furthermore, a warehouse will be set up to provide sales of marine equipment and chandelling services to ships visiting Timor Leste.
Unlike other terminals in Timor Leste, which wholesales directly to end users, Global Oil Storage provides a different business model that allows local and international traders to co-load petroleum products and lease the storage tanks. This service can be provided through effective fuel management and operational team, that schedule and arrange fuel tank segregation in accordance to the fuel quality.
We intend to apply for Bonded Tanks to explore a new business sector in Timor Leste. Bonded status will enable us to break bulk and cater to bunkering as well as conduct “milk runs” to small islands in Indonesia and the Pacific ( such as Marshall Islands and Solomon Islands). The facility will also allow us to explore supply of bunker to the fishing fleets in the Arafura Seas to the East of Timor Leste.
The source of revenue is mainly from the leasing of tank storage to the local and international traders. The revenue is highly dependent on the turnover volume of the petroleum products. If the turnover is low, the revenue collected will be low. If the turnover is high, the revenue collected will increase accordingly. Therefore, it is important that the terminal is able to control the cost of operations and ensure efficiency, hence, optimising the revenue.
In addition, we will be investing in the area of Biofuels production from Used Cooking Oils (commonly referred to as “UCO”) and crude soy oil. We intend to set up a biofuel unit inside our terminal to turn used cooking oil and/or other renewable materials into biofuel for local consumption.
When operational, this set up can produce up to 4,000litres of biofuel for the local market. When we achieve this milestone, we intend to apply for ISCC Certification to facilitate the exportation of biofuels to our existing clientele in the region.
We hope that this investment project will help to stimulate the local petroleum market and allowing business owners to have greater control over their inventory and cost management through the leasing of our storage tanks.
Since 2012, Global Group’s presence in Timor Leste has contributed positively to the energy security of the country and we have trained many local employees in various aspect of the petroleum business such as fuel management, operation, marketing and accounting. We hope to continue to do the same in the biofuel sector.
GLOBAL OIL STORAGE TERMINAL
Our Vision
To be customer’s first choice in the area of petroleum supplies and risk management. Providing best-in-class wholesale and retail level oil supplies and services through continuous improvement driven by integrity, trustworthiness, responsibility, teamwork and operational excellence.
Our Values
Safety transcends all other desirable objectives, service is the key to our success, we work together as a family.
Our Mission
Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company and serves as the standard against which we weigh our actions and decisions.
- Energy that comes alive through focus on societal well-being
- To create value and make a difference
- Protecting the health of our employees, the environment, and putting safety first at all times
- Aim to achieve customer satisfaction and operational excellence through striving for quality and quantity (QQ) assurance
Objective
- To be a one-stop wholesaler of petroleum products to the Republic of Timor Leste.
- Providing high quality and right quantity at an affordable prices to our customers.
- Provide value-added services such as chandelling, water supply, provisions, marine equipment and lubricants.
- To participate in the demand growth for petroleum products through providing leasing of storage tanks to local and international traders.
QHSSE Policy
Quality Policy
We are committed to providing services that satisfy our customers’ needs and expectations for quality, performance and safety by fostering a business culture that trains, develops and encourages our people to continually improve in all aspects of our operations.
Health, Safety, Security & Environment Policy
Safety is the fundamental core value to all aspects of our operations.
1.0 Company Summary – Global Oil Storage Terminal
Global Oil Storage Terminal is a Timor Leste registered company, is part of the Global Group of companies, with operations in Singapore, Timor Leste, Indonesia, and Asia Pacific. With our associates and partners, we are involved in the oil and gas industry and investments into infrastructure development.
In Timor Leste, the Group is involved in the downstream petroleum business that imports and provide wholesale fuel supply to construction companies and petrol stations. With our own downstream supply chain from procurement, quality control and logistic deployment; we are able to provide efficient, round-the-clock fuel supply services.
Since 2012, the Global Group has hired and trained capable Timorese and provided extensive hands-on training in the business of petroleum trading both in the domestic and international markets. Since then, several have risen thru the ranks to become trusted partners as well as shareholders of the Company.
The training covers various aspect of the downstream business such as:
- Fuel Management
- Fuel Operational and Safety
- Fuel Marketing and Development
- Business start-up and credit financing
The training covers various aspect of the downstream business such as:
2.0 Management Structure
The management struture will consist of the board of directors that will appoint a qualified and experienced General Manager to oversee the managers. The management is structured to cover important function of the terminal such as:
- Operational Department
- Health and Safety Department
- Engineer and Maintainence
- Business Development (local and international)
- Accounts and Finance
To bring in foreign talents with experince in operating a terminal based on international standards is critical to the proper functioning of our terminal as well as the training of our future leaders in our Company.
2.0 Management Structure (cont’)
3.0 Products and Services
Global Oil Storage Terminal has designed an 8,000cbm storage facility for onshore and potentially even offshore petroleum supply. Terminal facilities consist of 2 custom-built tanks of 4,000 cbm each, utilising the Cement Timor Jetty for the purpose of discharging into the storage tanks and supply of marine bunkers.
In addition, warehouse space will be outsourced to a qualified third party who is capable and interested to cater for various business prospect such a chandelling, slop treatment, marine equipment supplies and lubricant supplies.
- 1. Diesel (Grade: 5000ppm to 10ppm sulphur max)
- 2. Gasoline (RON 98, 95 and 92)
- 3. Biofuels
- 4. Slop treatment
- 5. Marine warehouse (Marine spares and lubricants)
- 6. Chandelling and fresh water supply
Biofuels is another exciting development that we intend to introduce into Timor Leste. The need to extend our protection of the environment is critical. We intend to set up a biofuel unit inside our terminal to convert used cooking oil and other renewable materials into biofuel for local consumption. As a start-up, we believe the volume of production will be modest. However, all journeys start with the first initial steps. We intend to lobby the relevant departments for support in this initiative across the country.
Our experience and success in this sector is reflected in our operations in Indonesia. We are currently one of the leading players in the renewable materials sector in Indonesia. With storage capacity of more than 30,000 cbm in Belawan, Palembang and Banteng. The materials are exported to refineries world-wide for the production of biofuels.
In Timor Leste, we intend to rally the restaurants and other sources for their used cooking oils and convert these waste oils to usable biofuels for local consumption. The processing plant will be able to produce up to 4,000L of biofuel per month.
The production of biofuel will also be of assistance to Tibar Port. Based on international practice, it will be mandatory for ocean going vessels to utilise biofuel blended bunker by 2025. Without this, the Tibar Port will not be able to function at its full capacity.
The technology of biofuel production will be from the USA. Depending on the volume of raw materials collected, we will be able to produce up to 4,000L of biofuel monthly. If the demand requires, we can import raw materials from West Timor. Logistically, collection points will be set up in various locations in Dili and certain districts. We will encourage local partners to collect and deliver the used cooking oils to our processing plant in Liquica.
4.0 Target Market
In Timor Leste, the existing terminals are built to support and provide fuel wholesale directly to customers. As these storage facilities do not lease tankage to local petroleum companies, the local companies that intend to get involved in trading activities such as fuel importation and fuel storage are unable to do so efficiently.
Another limitation is the strong financial backing required to build and operate a terminal as well as operational capabilities, which prevents many local companies from advancing their businesses to a higher level.
To fill this gap, we intend to build a storage facility to provide and facilitate this group of traders, who do not possess the financial strength nor the knowledge to invest in a storage terminal.
For international trading firms, the Company believes that the ideal location of the terminal will allow break bulking of petroleum products to serve the neighbouring remote Indonesian islands and the nearby Pacific Islands, and other vessels that call on Timor Leste for their marine bunker requirements.
In the biofuels sector, our processing plant will be set up in the same compound. With a production capacity of 4,000L of biofuel per month, we would be able to cater to some of the requirements of Tibar Port as well as other sea faring vessels visiting Timor Leste.
This unit will also create a new business sector for our local partners for the collection of used cooking oils from different districts. As a collection center, the terminal will be able to centralise the treatment and production, control the quality and storage of the biofuel better.
Conclusion
The design of the storage terminal is planned in phases to ensure maximisation of volume turnover, and has the allocated space for future expansion of storage tanks to accommodate the demand growth of the country’s economy.
Phase 1A lays the main foundation work for the terminal construction that includes the important functions and safety of the terminal. The design is to provide the flexibility to accommodate subsequent expansion of the terminal (Phase 1B) while the existing terminal remains operational. The budget is also planned in construction phases to ensure that the costs of operations is optimised while maximising turnover volume in order ensure profitability to the Terminal. The profit will subsequently be channelled back for further investments planned in Timor Leste.
The investment for the storage facility will generate tax revenue for the economy, create market efficiency and price competitiveness, energy security, create job opportunities and training for the citizens of Timor Leste.
Furthermore, the manufacturing of biofuels can create a new business sector in Timor Leste. This plant can open up an entirely new business sector in the country. With the collection, processing and production processes, there will be numerous new opportunities for local companies to participate in the biofuel industry.
