Upstream, midstream, refining and petrochemical businesses are asset-intensive, requiring high production / throughput volumes of fairly low-priced commodity products to cover high costs of production in order to generate relatively low profit margins. This is less true as products become more niche / specialised.
Maintaining or improving Return on Capital Employed (ROCE) in the process industries largely hinges on management’s ability to control fixed and operating costs to drive profitability, but also capital efficiency associated with upgrades to or development of new facilities / infrastructure. Our solutions to these cost challenges are rigorous, accurate and holistic. We combine technical excellence, deep industry domain knowledge and operating experience to provide solutions in both of these areas:
- Operating costs. We minimise operating costs through energy efficiency optimisation and improvement in asset care and maintenance (including reliability and maintenance). Saving energy is the most reliable way to reduce operating costs and improve environmental performance through CO2, SOx, NOx emissions reduction. Committing the right level of investment into asset care and maintenance is critical for ensuring operational integrity and safety, particularly when equipment replacement costs are high and unplanned downtime can significantly impact profitability.
- Capital project efficiency. We improve capital efficiency associated with development or upgrade of facilities through cold-eyes reviews of concept and feasibility studies. This allows investment objectives to be met with the lowest capital spend. This can be particularly valuable when the viability of increasing production, e.g. in a gas field, on a unit revamp, etc. is contingent on the whole system or plant being able to cope with the new capacity.