NeoTerra Energy & Chemicals Group Business Plan — Management & Governance

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Section 9 · 10 of 15

Management & Governance

Delivering a multi-phase, capital-intensive process-industry programme demands institutional-grade leadership across energy and process engineering, project finance, feedstock and commodity management, and the governance a multi-source DFI-and-ECA consortium requires.

9.1 Executive structure

Position

Responsibility

Chief Executive Officer

Strategy, partnerships and stakeholder relationships

Chief Operating Officer

Plant operations, production and utilisation

Chief Financial Officer

Project finance, treasury, controls and reporting

Technical / Engineering Director

GTL, chemical and fertiliser process delivery

Feedstock & Commodity Director

Gas/LNG sourcing and commodity-risk management

Commercial Director

Offtake, distribution and export contracts

Table 9.1 Executive management structure.

9.2 Governance & controls

A capital programme of this scale and complexity requires a board with independent, DFI and strategic-partner representation, a dedicated project-management office for process-plant delivery and cost control, rigorous feedstock and commodity-risk management, strong environmental and permitting compliance, and the covenant, inter-creditor and reporting infrastructure a multi-source funding consortium requires. Milestone-based drawdowns, a debt-service reserve and independent technical oversight of the GTL and chemical plants provide protection through the build.

NoteTechnical and feedstock execution capability is paramount

For a GTL-and-chemicals megaproject, the depth of process-engineering, feedstock-procurement and project-delivery capability is as important as the commercial thesis, arguably more so. Diligence should test the technology partnerships and performance guarantees, the gas-supply arrangements, the EPC contracting and cost-control approach, and the independent technical advisory around plant commissioning. The quality of these technical and feedstock arrangements will do more to determine the outcome than any single financial assumption, and should be the centre of gravity of due diligence.