Planning and evaluating options for the commercial, technical and economic feasibility of sulphur disposal.
The Situation
The client manages and oversees oil production in excess of two million barrels a day (one of the top ten oil and gas producers). It currently produces approximately 10% of global sulphur output as a by-product of its core business. The long-term market outlook indicated projected losses related to ‘involuntary’ sulphur production thereby requiring a strategic assessment and planning for alternative commercial options for their sulphur disposal.
Approach
- Integrated team of management and technical consultants deployed at the client site to engage relevant stakeholders
- Structured approach to designate, select and evaluate commercial, technical and economic feasibility of various option scenarios
- In-depth technology review and recommendation
- Detailed business case development and facilitation of stakeholder support
- Market scenario modelling and risk mitigation planning
- In-depth regional and global market research and recommendations to ensure viability of each recommended option
- Short term and long term execution planning
Results
- Identified three major commercially viable options for consideration by the executive team
- Showcased business case for change and roadmap for both local and international development to government partners
- Structured process to aid decision making and mitigate risks
- Defined $3.3 – $8.2bn investment business cases for global sulphur downstream investment with potential specific partnership recommendations
- Dynamic financial model to validate CAPEX and OPEX requirements based on a technical evaluation for each option plus raw material (sulphur) consumption, IRR and NPVs based on regional selection
