CEG's capabilities in Commercial Advice have been developed
through our experience working in the oil, gas, chemical and utility
industries. Our services in these sectors comprise three main areas:
Policy Advice to Governments /
Oil & Gas: Litigation Support
CEG's capabilities in Commercial Advice have been developed through our experience working in the oil, gas, chemical and utility industries. Our services in these sectors comprise three main areas:
- Transaction Support;
- Policy advice to Governments; and
- Oil and gas litigation support
A common feature is our ability combine industry insights with application of financial and analytical skills. Taken together, we help clients understand underlying values of the assets involved or business issues in question.
The CEG Commercial Advice team provides support to transactions in a range of ways, ranging from portfolio strategy, market analysis and target identification to commercial, technical and market due diligence. We also handle transaction valuation, negotiation and completion components. In all cases, CEG’s success is derived from our ability to apply a unique blend of industry and financial skills. Whether the transaction is a transformative merger, a bolt-on acquisition or a green-field project, CEG is able to provide top quality advice and support to investors in the energy industry.
We also have the knowledge to develop financial models in a “bank friendly” manner and experience in explaining the credit story to banks and other financing sources and negotiating terms and conditions.
- Due diligence, valuation and negotiation support for an inward investor in a greenfield refinery and petrochemical plant in China
- Assistance to a UK listed independence during its acquisition of onshore production in the UK
- Commercial due diligence and valuations of potential downstream oil acquisitions in Western Europe
- Feasibility study for a prospective Middle East petrochemical complex, including feedstock analysis, product market & portfolio screening, preliminary technology recommendations, initial financial models and preparation of information packages for potential EPC contractors and lenders
- Advised a joint team from an international oil company (IOC) and a petrochemical major to identify joint venture petrochemical opportunities using methane and ethane feedstocks in North America
Policy Advice to Governments
The CEG Commercial Advice team has deep experience advising governments on issues affecting the energy / oil & gas industries. We have created energy master plans for governments to ensure maximum value is created for developing countries. Other examples include contributions to policy and commercial issues affecting gas and oil pipeline developments, together with assessing the economic impact of proposed government sponsorship for energy investments. Our specialists have also worked to successfully achieve privatisation and the associated restructuring that is often required to make a successful transition from a state-owned entity to the private sector.
- Energy Master Plan for Jordan
- Decision Support tool for a government in East Africa evaluating options for a new oil export pipeline
- Economic and technical review of a greenfield export refinery on the west coast of Canada
- Provided advice to various petrochemical and refining companies on the impact of emerging legislation concerning methyl tertiary-butyl ether (MTBE) use in gasoline and the potential response options
- Review of emissions (mainly greenhouse gas) intensity of certain EU petrochemical sectors to provide a better understanding of energy costs and carbon offsets
Oil & Gas: Litigation Support
CEG’s Commercial Advice team is able to deploy their deep industry, valuation and due diligence skills in support of major litigation cases for clients. Quite often actual operational experience is essential on these assignments, which when combined with strategic and commercial expertise can generate unique insights and effective results.
Since assignments can be analytically-driven, at times linked to topics where we have unique insights, surprising insights can emerge. A recent example is oil and gas market manipulation, where we have unique insights and capabilities.
- Prepared an expert report on best practice in corporate finance (Wincanton Holding BV vs. OAO Rosneft)
- Supported a client in a case involving disputed valuations of undeveloped oil reserves in the Russian Arctic
- Evaluated alleged manipulation of spot oil prices in Europe
- Acted as accounting experts in a dispute related to accounting treatment of costs and taxation
- Acted as experts in PGNiG vs Gazprom long term gas agreement price re-opener