Phenix Group Ventures Corporation

Phenix’s corporate strategy is to capitalize on the significant current and projected growth in Asia’s energy demand by providing an improved and cost effective method of transporting petroleum products from the Caribbean.

At present petroleum can only be transported from South America to Asia via three routes:

1. Through the Panama Canal: The Panama canal can only handle very small oil tankers at a cost per barrel 145% higher than of a ULCC super tanker; No shipments are being made at this time to Asia through the canal.

2. Around South America using frequently closed routes; there is only two to three months a year that this route can be used. This route has been removed from most shipping companies routes.

3. Around Africa utilizing a very long route currently being use to ship oil from South America to Asia This route route that takes 46 days one way vs. Phenix’s 23 day route .

Currently it takes approximately 46 days of one-way transportation time to ship crude oil from the Venezuela to China and 49 days to Japan. The Phenix 23 /21 day route not only will save money on the transportation of the oil; it will also reduce the need for tankers by approximately 50%

The Phenix pipeline provides significant benefits to currently available transportation methods in the region. The pipeline will offer:

Significant cost savings;
Substantial savings in time which frees up additional tanker capacity;
Allows for the use of super tankers to transport oil to Asia from South America. Currently the largest vessel that can transit the Panama Canal is known as a PANAMAX-size vessel (ships ranging from 50,000 - 80,000 dead weight tons in size);
Increase pipeline safety and uptime. This increases utilization and decreases environmental threats of a spill. Pipelines have the lowest accident ratio when compared with all other transportation methods;

Lessens dependence on a vital world oil transit chokepoint. The Panama Canal has been identified as a world oil transit chokepoint due its potential for closure. Disruption of oil flows through a chokepoint route can have a potential impact on world oil prices.

Phenix will install "state of the art" technology during the construction of the project, in the area of safety, security and control systems, thus avoiding or minimizing operational failures, mechanical failures and corrosion during the operation of the project.

These sophisticated features will continuously monitor pipeline operation to immediately respond to any changes, mitigate environmental impacts and optimize construction and operation of the pipelines.

The pipeline will consist of two marine terminals located at Monkey Point on the Atlantic coast and Corinto Port on the Pacific Coast. Connection between the super tankers and the terminals will be established via deep water off shore buoys. Each marine terminal will be equipped with storage facilities with a capacity of approximately 2 million barrels. The pipeline will be approximately 470 km long and will be located along the Nicaragua Utility Corridor passing from East to West along Zelaya Sur, Chontales, Boaco, Managua, Leon and Chinandega.

The pipeline will consist of dual pipelines; 30 inches for crude oil and 24 inches for Orimulsion. The 30 inch and 24 inch pipelines will be capable of transporting up to 720,000 and 300,000 barrels per day, respectively.

Pumping Stations will be situated in each Marine Terminal for transferring products from storage facilities to the appropriate pipeline. Additional pumping stations will be located along the pipeline in order to maintain product flow and pressure.

Each pumping station will have its own power plant, utilizing product from the pipeline as fuel, with sufficient generating and backup storage capacity to operate each pumping station.

All of the pumping stations will be protected by automatic foam and high pressure water fire suppression systems. In the case of a leak, an automatic system of pressure sensors in the pipeline will use a fiber-optic link to inform the OCC and to close off the emergency valves in the section affected and automatically shutdown the pumping stations.

The Marine Terminal Tank Farms will be located at Monkey Point on the Atlantic coast and Corinto Port on the Pacific coast. The connection between tankers and the terminals will be via offshore buoys situated in deep waters to safely accommodate supertankers (VLCC).Each terminal will have a storage capacity of approximately 2,000,000 barrels of Orimulsión or crude oil.

Storage facilities will be constructed according to state of the art standards, including discreet compartmentalization, protective dykes, surface water monitoring and protection, fire suppression, and tropical storm/hurricane resistant structures.

The Marine Terminals will consist of storage tanks, a pumping station, administrative offices, stores and maintenance shops. A Permanent Terrestrial Emergency Team and a Permanent Marine Emergency Team will be based within each Marine Terminal.