A strategically de-risked project with top-tier returns, positioned to become a critical energy hub in one of the world's most advantageous locations. This comprehensive investment opportunity represents a rare convergence of geographic advantage, fiscal incentives, and market demand that positions Salalah as the next generation of energy infrastructure.
16M
Total Storage Capacity
Barrels of world-class petroleum storage positioned at a strategic maritime crossroads
$545M
Total CAPEX Investment
Comprehensive capital deployment across infrastructure, facilities, and operational readiness
$380M
Projected Annual Revenue
Robust revenue streams from storage fees, blending services, and value-added operations
$270M
Projected Net Profit
Strong margins driven by operational efficiency and premium market positioning
50%
Estimated ROI
Exceptional returns reflecting the project's strategic value and competitive advantages
A Position of Unparalleled Competitive Advantage
Salalah's unique combination of location, infrastructure, and regulatory environment creates a compelling value proposition that sets this project apart from competing facilities across the Middle East and broader Indian Ocean region. These structural advantages provide enduring competitive moats that protect returns over the long term.
Geographic Supremacy
Located outside the volatile Strait of Hormuz, Salalah offers unparalleled maritime safety and direct access to global shipping lanes connecting Asia, Africa, and Europe. This strategic positioning eliminates geopolitical risk premiums and provides 24/7 access to major shipping routes, reducing transit times and operational costs for customers.
Exceptional Fiscal Incentives
The Salalah Free Zone provides a 30-year tax holiday, 0% customs duties, and allows for 100% foreign ownership, creating a highly competitive cost base. These incentives translate directly to bottom-line profitability and enable pricing strategies that can outcompete regional alternatives while maintaining superior margins.
Modern, ESG-Compliant Hub
As a new build, the facility will incorporate state-of-the-art technology for efficiency and safety, meeting the stringent ESG requirements of global energy majors. This future-ready design positions the facility to serve the evolving demands of international oil companies, traders, and renewable energy players seeking compliant storage solutions.
The Path to 16M BBL: A Prudent, Phased Approach
Our phased development strategy systematically manages capital deployment, construction risk, and market validation. This approach directly addresses investor concerns about execution risk while preserving the optionality to scale rapidly when market conditions warrant expansion. The two-phase structure creates natural checkpoints for performance validation and strategic decision-making.
1
Phase 1: Foundation & Market Entry
Capacity: 4,000,000 BBL of strategically positioned storage
CAPEX: Approximately $126 Million in focused capital deployment
Timeline: 24 Months from financial close to commercial operations
Strategic Goal: Prove the operational model, secure anchor tenants, establish market presence, and generate early positive cash flow to support Phase 2 financing. This initial phase validates commercial assumptions and demonstrates execution capability.
2
Phase 2: Strategic Expansion
Additional Capacity: 12,000,000 BBL expansion to full scale
CAPEX: Approximately $419 Million in scalable infrastructure
Expansion Trigger: Greater than 80% occupancy in Phase 1 combined with secured long-term commercial commitments from additional anchor customers
Strategic Goal: Scale operations to achieve dominant market position, maximize economies of scale, and establish Salalah as the preeminent energy storage hub for the Indian Ocean region.
Financial Architecture: A Foundation of Stability
In direct response to Investment Committee feedback and extensive discussions with potential lenders, we have redesigned the capital structure to balance return optimization with financial resilience. This revised 70/30 debt-to-equity ratio represents the optimal balance between leverage efficiency and downside protection, providing substantial equity cushion while maintaining attractive returns for sponsors.
Total Capitalization: $545 Million
Balanced Partnership Structure: The 70/30 debt-to-equity framework aligns the interests of equity sponsors and senior lenders, ensuring both parties benefit from project success while maintaining appropriate risk allocation.
Enhanced Financial Resilience: The substantial $163.5 million equity component provides a critical cushion against market volatility, construction contingencies, or unexpected operational costs during ramp-up.
Institutional Investor Confidence: This prudent capital structure demonstrates responsible financial stewardship and significantly lowers the project's overall risk profile, making it attractive to both commercial banks and development finance institutions.
Total Project CAPEX Breakdown
Full Scope Capital Deployment: $545 Million
A transparent and detailed allocation of capital investment for the complete 16 million barrel facility. This comprehensive breakdown demonstrates the thoughtful planning and robust cost controls embedded in the project design, with each component sized to industry best practices and supported by detailed engineering studies and contractor quotations.
The capital allocation reflects industry-leading engineering standards, with storage tanks representing the core asset base, comprehensive jetty infrastructure enabling efficient ship loading/unloading, professional project management ensuring on-time delivery, and prudent contingency reserves protecting against construction risk.
Addressing Investor Feedback
A Proactive Risk Mitigation Framework
Following extensive dialogue with the Investment Committee and potential financial partners, we have systematically addressed every key concern through concrete structural improvements and enhanced governance mechanisms. This responsive approach demonstrates our commitment to building a truly institutional-grade investment opportunity.
Financial Leverage Risk
Original Concern: High leverage ratios could strain cash flow during market downturns or operational ramp-up delays.
Mitigation Strategy: Implemented a balanced 70/30 debt-to-equity structure, substantially reducing financial pressure and enhancing stability. The increased equity cushion provides flexibility to weather market cycles and supports conservative debt service coverage ratios that exceed lender requirements.
Commercial Occupancy Risk
Original Concern: Uncertainty around customer commitments and utilization rates could impact revenue projections.
Mitigation Strategy: Prioritizing the execution of binding contracts with 3+ anchor tenants representing minimum 60% of Phase 1 capacity before achieving financial close. Active discussions are underway with major international oil traders and regional energy companies, with strong indication of interest driven by Salalah's strategic advantages.
Execution & Construction Risk
Original Concern: Large-scale construction projects carry inherent timing and cost overrun risks.
Mitigation Strategy: Adopted a manageable 4 million barrel Phase 1 scope to reduce construction complexity and duration. Enforcing rigorous EPC contract terms including fixed-price commitments, performance guarantees, liquidated damages for delays, and completion bonds from creditworthy contractors with proven track records in comparable projects.
Governance & Oversight Risk
Original Concern: Questions about governance structure and operational oversight capabilities.
Mitigation Strategy: Establishing a professional Board of Directors with qualified independent directors bringing relevant industry expertise. Creating dedicated Audit and Risk committees with clear charters, implementing comprehensive reporting frameworks, and ensuring full UBO transparency with all financial partners to meet international best practices.
Governance and ESG Commitment
Building a Sustainable and Responsible Enterprise
In today's investment landscape, strong governance and environmental stewardship are not optional—they are fundamental to long-term value creation and stakeholder confidence. Our comprehensive ESG framework positions this project to meet the evolving standards of international lenders, strategic partners, and ultimately, exit buyers seeking world-class assets.
Strong Corporate Governance
Independent Board Structure
A professional board with independent directors will ensure robust oversight, bringing diverse expertise in energy, finance, and operations to guide strategic decision-making.
Full Transparency Standards
Commitment to complete Ultimate Beneficial Owner (UBO) transparency with all financial partners, meeting international anti-money laundering and know-your-customer standards.
Dedicated Committee Structure
Establishment of specialized Audit and Risk committees to manage financial integrity, internal controls, and enterprise risk management with regular reporting to the full board.
World-Class Partners
Appointment of top-tier Project Management Consultants and EPC contractors with proven track records in similar energy infrastructure projects, ensuring technical excellence and execution certainty.
Unwavering ESG Commitment
Environmental Stewardship
Targeting ISO 14001 environmental management certification and implementing state-of-the-art monitoring systems for emissions, water usage, and environmental impact. Comprehensive spill prevention and emergency response protocols will exceed regulatory requirements.
Social Responsibility
Prioritizing local workforce development through Omanization initiatives, ensuring fair labor practices, competitive compensation, and the highest standards of worker health, safety, and welfare throughout construction and operations.
Future-Ready Infrastructure
Designing the facility with provisions for future storage of green fuels including ammonia and hydrogen, positioning Salalah to participate in the global energy transition and serve next-generation energy markets.
Climate Resilience
Incorporating climate risk assessments into facility design, with infrastructure engineered to withstand projected climate scenarios and extreme weather events over the 30+ year operating life.
Beyond Storage: The Future of Salalah as an Energy Hub
Long-Term Value Creation Strategy
Our vision extends far beyond operating a simple petroleum storage terminal. We are systematically building a critical piece of global energy infrastructure with multiple value creation pathways and a clear trajectory toward a significant liquidity event that will generate exceptional returns for early-stage investors and equity partners.
Revenue Diversification
Maximizing profitability through value-added services including petroleum blending operations, quality testing and certification services, vessel bunkering, and strategic re-export capabilities that command premium pricing from international traders and energy companies.
Strategic Exit Positioning
Positioned for a high-value strategic acquisition within 5-7 years to a major National Oil Company, global energy trader, or infrastructure fund seeking established assets with strong cash flows and growth potential in strategic locations.
Target Exit Valuation
Based on comparable transactions and industry valuation multiples, we project an enterprise value range of $2.4 to $3.0 billion at exit, representing a multiple of 8-10x EBITDA and delivering exceptional returns to founding equity partners.
The Path Forward
We have systematically de-risked this investment through prudent financial structuring, phased development, enhanced governance, and comprehensive risk mitigation. Combined with Salalah's world-class location and the project's top-tier return profile, all elements are aligned for success.
Investment Committee Recommendation
We recommend proceeding with Phase 1 development, subject to finalization of anchor tenant agreements and senior debt financing terms. This represents a compelling risk-adjusted return opportunity with strong downside protection and exceptional upside potential.
Investment Opportunity Summary
Salalah Tank Storage Facility
The revised Salalah Tank Storage Facility investment plan represents a rare convergence of strategic location, fiscal advantages, proven market demand, and institutional-grade governance. Through systematic risk mitigation and responsive capital structure redesign, we have created an investment opportunity that balances ambitious returns with appropriate downside protection.
01
Secure Financial Close
Finalize equity commitments and senior debt documentation with target close in Q2 2025
02
Execute Anchor Contracts
Complete binding agreements with 3+ major customers representing 60%+ Phase 1 capacity
03
Commence Construction
Break ground on Phase 1 infrastructure with 24-month timeline to commercial operations
04
Achieve Operational Excellence
Ramp to full Phase 1 utilization and validate expansion case for Phase 2
05
Execute Strategic Exit
Position for premium valuation acquisition within 5-7 year investment horizon
"Salalah represents the optimal combination of geography, economics, and timing. This is infrastructure that the global energy system needs—and we have the opportunity to deliver it."