Oil, Midstream & Downstream Consulting

Challenge

A major client for a North American refining and marketing company wanted to see how competitive it was against its peers across each of their business segments.

Solution

• Utilized S&P Global Energy (SPGCI) benchmarking expertise and data resources, along with client data, to provide a clear picture of the client’s relative competitiveness in each of the major supply chain segments, including refining, outbound logistics, wholesale, and retail.
• Developed market context to understand how local markets and geography played a role in financial and operational performance.
• Identified specific opportunities where the client could improve operations and grow the business.
• Developed a medium and long-term strategy for each of the business segments.

Results

Senior management, planning and operations staff, and the Board of Directors were given clear actions to encourage future growth.

Challenge

Our client had questions about lower net carbon feedstocks of interest and needed answers.

Solution

• Reviewed the regulatory landscape to understand the drivers for growth in energy transition and sustainability.
• Generated an outlook for the supply of sustainable feedstocks in olefins, hydrogen, ammonia and methanol.
• Reviewed the impact of S&P Global Energy (SPGCI) alternative Energy Scenarios and Net Zero Cases on the sustainable feedstocks supply outlook.
• Reviewed technology pathways and their CO2 footprints versus incumbents.
• Generated a cost analysis to understand the outlook for the cost adders of bio-feedstocks over conventional feedstocks over time.
• Integrated SPGCI’s view of CO2 price outlook under different scenarios into the cost adder analysis.
• Analysed the timing of expected cross overs, i.e. when sustainable pathways become more cost competitive than incumbents.

Results

Senior management, planning and operations staff, and the Board of Directors were given clear actions to encourage future growth.

Challenge

An Eastern European utility company was interested in acquiring a stake in upstream assets producing gas and condensate in Azerbaijan. The investment bank associated with this transaction from the buy side, retained our consulting team to provide an independent commercial due diligence study, which can serve as a key reference for the bid.

Solution

• OMD consulting within SPGCI did an independent valuation of the condensate produced from the upstream assets and provided an outlook on the price.
• The project also included a review and outlook of the condensate market in Europe and the Mediterranean, examining supply, demand, and trade.

Results

The commercial due diligence report was used to assess the bid (on the buy side), and the project led to a successful transaction. The utility company signed a deal to acquire a 5% stake in the upstream assets.

Challenge

A UK-based client was interested in acquiring a stake in a refinery in South Africa. The client retained our consulting team to provide an independent commercial due diligence study for its management team to review in connection with this transaction.

Solution

• We developed a detailed commercial due diligence report that covered an in-depth analysis of the refinery and its capabilities, as well as a global and regional outlook for the refined products.
• A competitive benchmarking analysis was done to assess the competitiveness of the refinery in the region, determining its relative standing
• The project also included a review of the refinery margins, retail and wholesale margins, and analysis of the local downstream infrastructure.

Results

A commercial due diligence report was used to assess the bid (buy side), and the project led to a successful transaction with the client acquiring a 36.36% stake in the refinery.