GTST Mauritania 2018

completed

The proposed project involves IFC’s participation in a syndicated, uncommitted and secured Revolving Credit Facility to Addax Energy S.A. (‘’Addax’’ or the “company”) to finance Mauritania’s petroleum products import needs for 2018-2020 (the “project”). Addax Energy SA is the trading arm of Oryx Energies SA, a Swiss company, majority-owned by private investment group, The Addax and Oryx Group Plc (“AOG”), founded in 1987. In Mauritania, Addax’s operations are managed by Maghreb Oil Ltd. Addax is contracted to source and import petroleum products for sale to local mining companies and local oil marketing companies (“OMC”), which are licensed to operate as retailers and distributors in the country.  The proceeds of IFC investment will be used by Addax to purchase various liquid fuels from around the world markets and store those at aboveground storage tanks (ASTs) facilities located in Nouakchott and Nouadhibou, Mauritania. Nouadhibou terminal is part of an old refinery built in 1978 and stopped operations in 2000.  The terminal has 20 ASTs but GIP is utilizing 12 ASTs distributed as follow: 2 X 5,000 m3 ASTs for gasoline, 2 X 7,500 m3 ASTs for jet fuel, 2 X 25,000 m3ASTs for fuel oil, 3 X 7,000 m3, 2 X 8,000 m3 and one 40,000 m3ASTs for gasoil.  The company is renovating the other 40,000 m3 AST to be used for gasoil, which is expected to be operational in July 2018.Both the terminals in Nouakchott and Nouadhibou are owned by the Government of Mauritania but managed by management companies. The Nouakchott terminal is managed by Société Mauritanienne des Hydrocarbures et du Patrimoine Minier (SMHPM) and the Nouadhibou terminal is managed by Société de Gestion des Installations Pétrolières (GIP), a subsidiary of Société Nationale Industrielle et Minière (SNIM), the largest state-owned company in Mauritania. Nouakchott terminal has ten ASTs  built in 2004 with a capacity of 60,000 m3 distributed as follows: 3 X 2,000 m3 ASTs for jet fuel, 2 X 3,500 m3 for fuel oil, 2 X 2,500 m3 ASTs gasoline and 3 X 14,000 m3 for gasoil. The Government through the managing company (SMHPM) has issued tenders for construction of three more tanks; two for fuel oil and one for gasoil.Both terminals are served by a network of pipeline linking the storage tanks to the conventional buoy mooring (CBM) intake point. Two 24-inch pipelines each feed the ASTs with gas oil, while 16-inch and 10-inch pipelines supply fuel oil and jet fuel respectively at Nouadhibou terminal.  In Nouakchott terminal, only two 18-inch pipeline are linked to the tanks. The fuel is retrieved from the terminal by tanker trucks connecting to a four island “top loading” in Nouakchott and two in Nouadhibou terminal. In both terminals, the jetties are approximately two kilometers from the tank terminals.  The ships dock about 500m and 800m from the shore line for Nouakchott and Nouadhibou respectively and there is no visible coastal erosion.For this project, the ASTs are considered as associated facilities for the proposed revolving credit facility. The E&S risks and impacts for the ASTs and associated infrastructure will be managed by the respective management companies.