Our downstream oil team offers a wide range of services to clients globally, providing technical, market, commercial, strategic and environmental advice for grassroots refineries, refinery upgrades, refinery M&A and storage/terminalling projects.
As an independent consultant Nexant does not have any associations with any licensors or EPC contractors, allowing us to provide independent and impartial advice. Nexant is frequently involved at all stages of project development – covering both grass roots developments as well as expansions and upgrades – from initial planning, execution and operation. This involvement includes:
- Provision of project screening, pre-feasibility and feasibility studies
- Independent Technical, Market and Environmental advisory support to Lenders in relation to numerous multi biillion dollar refinery projects
- Independent M&A transaction support covering technical, market, commercial and environmental considerations
Our staff members have considerable refinery and downstream experience with International/National Oil Companies, Licensors, EPC contractors, and lenders to these projects.
We offer detailed knowledge of licensor offerings with contacts throughout the industry. Our extensive in-house knowledge of the petrochemical value chains ensures we are well-positioned to advise on commercial or technical aspects of further processing of refinery streams and the benefits of integration to capture value. With consultants located in all major regions, Nexant offers truly global coverage.
Nexant has a deep understanding of the refinery technical issues that ensure a successful project through:
- More than 30 years’ experience in tracking technology issues from refinery processes to high value chemical production
- Depth of Experience in all refinery technologies: Distillation, Hydrotreating, Hydrocracking, Fluidised Catalytic Cracking (FCC), Solvent Production, Alkylation, MTBE, Reforming (including aromatics), Isomerisation, Residue Upgrading, Base Oil Production, Coking, Visbreaking, Hydrogen Production, Sulphur Treatment and Utility Units
- Providing support to projects for all levels of complexity from simple process revamps through to integrated refinery-petrochemical complexes
- Optimisation of refinery configurations (including LP modeling)
- Extensive experience of opining on project execution strategy
- Numerous refinery monitoring engagements which allows Nexant to give a realistic appraisal of project schedules, capital cost appraisals, contingency levels and forming appropriate refinery lenders reliability tests
Nexant has a solid reputation providing robust market outlooks to test project viability, based on the following:
- Nexant’s global coverage and on-going publication of off-the-shelf market outlooks ensures an on-going capability to analyse historic markets and provide appropriate refined product market forecasts
- Historical and Forecast Refined Product Price and Margin Forecasting under different oil price scenarios
- Solid understanding of competitiveness issues ensuring the correct recommendation of base case sensitivities to test project viability
- Full familiarity with a wide range of feedstock supply and offtake contracts and able to opine on the risks they may place on the project
- Supply, demand and trade analysis
- Consulting experience supporting marketing activities providing a realistic insight on how best to build revenue once commercial operation starts
Nexant has experience in evaluating and articulating risk to project financiers in due diligence assignments and carries out pre-feasibility studies, based on the following:
- Primary objective of undertaking an independent review of the project on behalf of the prospective lenders
- Nexant’s role is to evaluate and articulate to lenders the project and its associated risks
- Nexant aims to work closely with lenders and sponsors to ensure risk are understood to allow appropriate mitigation
- Nexant’s can leverage our understanding of the full value chain from Crude Oil, Refined Products, Energy and Chemicals
The below case studies are typical of recent assignments undertaken by Nexant’s downstream and refining team, and illustrates well the breadth of roles and range of projects that we are suitably qualified to assist with. Nexant has the capability to work across the globe with major consulting offices in Europe, Middle East, Asia and Americas.
Feasibility Study, Grass Roots Refinery and Petrochemicals Complex (SE Asia) Nexant prepared a feasibility study for an integrated refining and petrochemicals complex including configuration evaluation/optimisation, investment and operating cost estimation, market and pricing analysis, financial modelling and implementation planning
Lenders’ Market Consultant, Grassroots Refinery (Turkey) Nexant undertook market due diligence on behalf of lenders for a new complex refinery to be constructed in Turkey, including forecast regional product supply/demand/trade volumes, price forecasts, market entry strategy, review of project financial model and evaluation of risk
Heavy Oil Upgrader Feasibility Study (South America) Nexant was retained by a South American national oil company to prepare a feasibility study that evaluated heavy oil upgrading as a possible element of its future heavy oil production and marketing strategy. The study proposed and reviewed location, configuration (i.e., coking versus hydrogen addition) and size alternatives for a heavy oil upgrader, and identified the best alternative from a technical and economic perspective.
Independent EPC/FEED/PMC Technical Bid Evaluations (SE Asia) Nexant had devised criteria and undertaken independent several technical bid evaluations relating to EPC, FEED, PMC services for major refinery projects covering grass roots facilities and refinery upgrades/expansions
Lenders’ Technical Consultant, Refinery (Russia) Nexant is involved in several Russian refinery upgrade projects. Nexant is currently engaged as technical advisor to the lenders of these projects. This includes opining on technology, configuration, yields, EPC structure, schedule, capital and operating costs. Nexant is also retained to carry out construction monitoring and drawdown of fund support on these projects.
Lender Technical, Market and Environmental Consultant, Grassroots Refinery (India) Nexant acted as independent technical, market and environmental advisor for Lenders relating to the construction of the two largest grass roots refineries ever built in the world in India. Scope of work included reviews of overall configuration, design and technology selection, execution strategy including review of all key third party agreements, project schedule, operations and maintenance plans, project cost, crude oil and refined products supply/marketing plans, market and pricing forecasts, environmental compliance including national standards and international guidelines such as Equator Principles. Nexant also carried our Construction Monitoring including review of project progress in terms of project schedule, cost and performance
Buyer’s Side Technical Due Diligence, Refinery Acquisition (Western Europe) Nexant was retained by a major international oil company to provide independent analysis and evaluation in relation to the potential purchase of an operating refinery in Western Europe. The technical review of the refinery, crude supply pipelines and product terminals detailed the crude processing capability and product range, benchmarked historic performance (utilisation, efficiency, maintenance etc.) and analysed refinery competitiveness.
Lenders’ Technical and Market Consultant, Storage Terminal (Confidential) Nexant was appointed to perform both technical and market due diligence for a terminal to be constructed for the import and storage of refined products. Analysis of current and forecast refinery production, local demand and existing import infrastructure was undertaken to project future throughput volumes at port. Technical due diligence was performed relating to project contracts (including EPC and supply contracts), budget, schedule and operations and maintenance plan prior to financial close. Nexant also developed reliability test for lenders and is presently undertaking implementation monitoring throughout the EPC phase.
Lender Technical, Market and Environmental Consultant, Storage Terminal (Malaysia) Nexant acted as independent technical, market and environmental advisor for Lenders relating to the construction of an oil storage terminal. Scope fo work included reviews of overall configuration, design, execution strategy including review of all key third party agreements, project schedule, operations and maintenance plans, project cost, environmental compliance including national standards and international guidelines such as Equator Principles.
Lender Technical Consultant, Grassroots Refinery (Vietnam) Nexant acted as independent technical advisor for Lenders relating to a new refining and petrochemicals complex in Vietnam including reviews of overall configuration, design and technology selection, execution strategy including review of all key third party agreements, project schedule, operations and maintenance plans and project cost. Nexant also carried our Construction Monitoring including review of project progress in terms of project schedule, cost and performance.
GTL Project Feasibility Study (Alaska) Nexant prepared a feasibility study for a GTL project in Alaska, which included evaluating markets and pricing for GTL diesel, kerosene and naphtha products in Alaska and North Asia. The study also evaluated GTL technologies and the maturity of said technologies for large scale commercial use and estimated the cost of producing these products from the recommended technologies.
Lenders’ Technical and Market Consultant, Refinery Upgrade (Argentina) Nexant was retained by lenders to undertake technical and market due diligence for a major upgrading project being developed at a refinery in Argentina
Refinery Environmental/Safety Assessments (South America) Nexant performed independent Environmental/Safety Assessments for two large expansion projects being developed at South American refineries. Potential environmental and safety risks associated with major process units in the existing refineries and also the proposed expansion projects were evaluated. Major accident and environmental incident scenarios were developed and likely mitigation options for the risks were identified and defined.