Executive Summary

LOGIC CHINA EXECUTIVE SUMMARY-INITIATIVES AND STRATEGY FOR THE DEVELOPMENT OF PETROLEUM RELATED BUSINESSES AND INDUSTRIES

  1. INTRODUCTION

    Logic Group of Companies has investment and interest in High Technology Ventures, Manufacturing Concerns, Infrastructure and Property Projects, Mining and Resources Projects throughout the South East Asia Regions, Australia, Africa, Europe, USA and Asia.

    Logic's operating philosophy is Integrity, Trust and Quality.

    Logic is committed to bringing Social Development and the necessary Capital together when countries join the global Economy.

    Logic has access to vast financing sources with diversified backgrounds and emphasis, such as Institutional Investors, Venture Capital, Private Equity, Subordinated Debt, Leverage Funds and Trust Funds. Thus Logic is able to ensure flexibility adaptively.


  2. OBJECTIVE

    Logici's Objective is to invest in companies and projects that show a real commitment to increased profitability and operate in a professional manner.


  3. DEVELOPMENT OF PETROLEUM RELATED BUSINESSES AND INDUSTRIES

    Logic has invested and acquired a number of Petroleum Exploration and Extraction and other Petroleum Related Businesses in the last three years and is currently evaluating possible acquisition of Refineries, Logic intends to increase its commitment in this sector with long term focus, with the aim to list these investee companies and associate companies on World Premier Exchanges in the next 3-5 years, either separately or combined.


  4. INITIATIVES AND STRATEGY

    1. Logic is investing substantial efforts and capital to broaden the supply base and the customer base of the Petroleum Related Companies. The objective is to increase the combined turnover of these companies to a level that is equivalent to 10 million to 15 million MT of various Petroleum products per month.


    2. Logic plans to invest directly or indirectly into the Refineries. (i.e. a vertical integration of the current Downstream businesses of Sales and Distribution to the Upstream Refining of the finished Petroleum Products to ensure constant and stable supplies). Logic is currently evaluating the acquisition of a number of refineries in Europe with an estimated total investment of about US$ 2 Billion. Logic and its partners have also entered into a Joint Venture to provide Working Capital to acquire Crudes and fund the processing of the Crudes for certain refineries in Eastern Russia. Logic is also evaluating a proposal from a USA based Petroleum Exploration and Extraction Company to participate in their proposed Joint Venture to enter into the Business.


    3. Logic has already acquired or plans to acquire or leases on long term basis Tank Storage Facilities in Strategic locations such as Maoming (Guangdong Province of China), Singapore, Rotterdam, Houston, Shanghai, Dalian, Qingdao, Mombassa etc.


    4. Logic works with Platts Singapore Office to develop a Comprehensive Information Network to satisfy the needs of our various Petroleum Related Businesses and Representation Offices Worldwide.


    5. Logic has recently secured the services of a number of former senior employees of some of the Major Oil Companies to spearhead and coordinate the development of the Group's businesses in this sector.


    6. Logic has negotiated or is in negotiation with several International Shipping Groups in view of participating in Equity Expansion required by these shipping companies to renew their fleets and eventually expand their fleets when the world's economy recovers. This will further improve Logic's capability and flexibility in the Petroleum Industry.


  5. CONCLUSION

    Logic has successfully built up a professional team in the Petroleum Trading Business through acquisition, partnership, Joint Ventures and establishment of Representation Offices and Sales Offices worldwide. Logic also benefits from the solid and flexible funding sources from the Group’s traditional Strategic Partners and Investors and can provide the necessary funding for the traditional Petroleum Trading Business and the very substantial additional capital required for Vertical Integration of Downstream Trading Activities with the Upstream Refining Capabilities. With these Logic plans to forge, in the next 2-4 years, a World Leading Integrated Petroleum Conglomerate within the Group.