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Recent Projects |
The following examples of projects undertaken recently for clients give an indication of the breadth and variety of Channoil Consulting’s experience - but our full capability extends even more widely.
- Asset and business evaluation
- Bunkering
- Business reorganisation
- Crude oil production and marketing
- Crude oil quality banking
- Education and training
- Expert witness
- Finance
- Refinery performance improvement
- Refinery valuation
- Risk management
- Storage and logistics
- Strategic development studies
Asset and business evaluation
Our knowledge of industry hardware coupled with our extensive commercial experience make this area one of our major strengths, which is regularly employed in advising potential buyers or sellers of assets including state privatisations.
Examples include valuations of: a southern European marketing and trading organisation; a South American refining and commercial sales organisation; an FSU coastal refinery; oil terminals in the Baltic, the Mediterranean and the Middle East and the oil assets of a Middle Eastern refinery in liquidation.
As other outlets for high sulphur fuel oils diminish, the market for ships' bunkers assumes greater importance. We have long experience in the fuel oil trade. In the past year (2005)we have prepared a major multi-client study on the future of the fuel oil and bunker markets, given recent new sulphur limits in Europe. We have undertaken several studies on bunkering businesses in the Middle East and Europe.
Business reorganisation
Commercial pressures continue to create the need for reorganisation and restructuring. As past supply & trading managers, we have experience of the issues and understand the processes required to drive business change in the trading and downstream business. We have recently advised a range of entities from affiliates of large integrated organisations, to refiners, to downstream marketers, to potential new entrants, on trading and risk management organisation, controls and incentives.
Crude oil production and marketing
Our experience of both the technical evaluation and the marketing and trading of crude oil is invaluable in the development and promotion of new crudes.We have recently advised on the potential markets, transportation and valuation of crude oils in the North Sea and African markets, where factors such as acidity, pour point and contaminents were significant.
Skilled negotiation of the basis for entry of a new crude into an existing pipeline systems is the key to maximising value. Our experience includes a working knowledge of the value adjustment mechanisms and quality banking mechanisms for oil pipelines in several areas of the world. In the past year, we have prepared the ground for the renegotiation of the value adjustment system on one of the largest North Sea crude oil pipelines.
Channoil Consulting’s staff deliver the Oil and Energy Trading Economics module as part of the Masters course in Energy, Trade and Finance at the Cass Business School of London’s City University. This practically oriented, highly interactive module has proved extremely popular with the Business School and its students.We regularly deliver other training programmes, both through conference organisers and for specific companies. Thus Channoil’s staff are thoroughly experienced in delivering such programmes and can design specific solutions tailored to clients’ requirements.
We have provided advice relating to disputes on such matters as industry practice on oil trading procedures, losses, demurrage, quality, pricing mechanisms and risk management. we have executives who understand what is required of expert witnesses and have experience of this process through the courts.
Finance
Our considerable knowledge of the financing of the international oil trade has been put to use for a good number of clients. Projects have included helping to negotiate a long-term revolving inventory financing, arranging trade pre-finance for major Russian companies and broking an escrow financing package for the refurbishment of three Eastern bloc refineries. We have also arranged a blanket insurance policy for two large FSU trading groups.
Refinery performance improvement
Advising refinery management how to raise the level of operating performance to the best international standards through better practice and hardware improvement is one of our key skills. We have visited and made recommendations to two major Central European refineries on raising standards of operation and so improving financial performance. We have conducted a detailed study of feedstock supply options for several North American refiners.
Refinery Valuation
We have the experience to provide technical and operational due diligence and economic evaluation of refining assets. For example, we recently carried out such work in connection with the sale and purchase of a European refinery.
The volatility of oil and gas markets means that managing price risk is an essential part of managements' responsibilities. We have worked within companies to set up structures and procedures to assess, monitor and control the risks inherent in dealing in oil and gas markets.
We have provided numerous studies for the construction or extension of oil terminals. We have valued terminals, assisted with sale/ purchase negotiations, negotiated storage options and assisted with development of logistics.
Strategic development studies
We have conducted several strategic studies of existing and potential investment projects.
We have acted as advisors (together with PricewaterhouseCoopers) to Ukrtransnafta, the Ukrainian state oil pipeline operator, on the commercialisation of the Odessa-Brody crude oil line. This pipeline has the potential to supply up to 45 million tonnes per year of crude oil from the Black Sea to the markets of Central and Western Europe, bypassing the Turkish Straits. Our work has involved regular liaison with senior level representatives of governments, major oil producers and refiners, pipeline operators and other industry players in the region, reinforcing our deep insight into the oil transportation and refining business in Central Europe.
Other examples include an investigation of the Indian oil market, an assessment of the economic viability of a new oil export terminal, and a preliminary study for a new refinery construction. A comprehensive report on the FSU's export potential has recently been completed.