Due Diligence for Downstream Petroleum Marketers

Antea®Group's approach to due diligence with petroleum marketers takes into account decades of experience working in this niche market. To capture this experience, Antea Group has teams that are dedicated to downstream Oil & Gas clients’ due diligence work.  

The key to meeting clients’ needs on these types of due diligence projects is to allow for flexibility in scope and schedule, conducting the right level and detail of review to complete the deal. In some cases, a situation may allow a timeline of only a few days, while other deals may span several months. Scopes may vary from a high-level data room review, to detailed capital expenditure (CAPEX) reviews of infrastructure, as well as quick Phase I Environmental Site Assessments (ESAs)/Phase II ESAs. We provide recommendations and guidance, but at the end of the day, it is up to our clients to decide what comfort level they need to have with the risks, and how much they want to invest in the due diligence process.

Downstream petroleum transaction work often involves a portfolio of a large number of facilities situated across a wide geography. Having the ability to collect data quickly at the facility-level for a large number of sites, while still maintaining a perspective on what is material to the transaction is critical. Antea Group has developed unique systems to manage the types and amounts of data that typically need to be reviewed. From the data, we are able to summarize the associated risks and trends into a concise message to our client within the context of the unique transaction. At the same time, having the necessary data and research gives our clients confidence that our advice is well founded and accurate according to the characteristics of the portfolio.

Desktop reviews 

To screen the targets for known issues, data room reviews, review of commercially available databases, and review of publicly available information from regulators, agencies, or otherwise

Incident Summaries

Provides a summary and status of known releases with a path to closure analysis for each incident

CAPEX/Infrastructure Analysis

Evaluate underground/aboveground storage tank systems and associated infrastructure for longevity, compliance with applicable standards, and projected CAPEX going forward for operational continuity

Site Visits

To review the site operations, conditions, infrastructure, interview personnel, and assess the potential for neighboring or regional issues

Sensitive Receptor Analysis

Evaluate the neighboring or regional settings for potential third parties that may pose an above-normal risk in the event of offsite contamination migration

Interviews

Interviews with facility-level personnel geared around specific topics (culture, management systems, organization, pending litigation, formerly owned properties, etc.), as well as the C-suite team to ferret out less tangible issues

Phase I Environmental Assessments

Assessments per ASTM E1527-13 standards, or modified to reduce costs, or add non-scope considerations as may be requested by the client

Phase II Environmental Site Assessments

Assessments Used to confirm and/or characterize potential subsurface contamination risks in cases where too much uncertainty exists (i.e., soil, groundwater, soil vapor)

Statistical Risk Modeling

For situations involving significant uncertainties, Antea Group utilizes commercially available risk models (e.g., @Risk) to analyze the potential liability costs and provide the client with reasonable and representative estimates to use in their financial modeling of the portfolio valuation

Material Compliance Reviews (MCR)

A formal review of site conditions and operations to identify compliance risks that are material to the deal, associated with applicable environmental, health, and safety regulations

Financial Reviews

Evaluate reserves, operational budgets, and planned CAPEX for indications of known liabilities and/or discrepancies with expected expenditures

ESG and Financial Sustainability Risks

To serve the needs of global financing institutions as well as corporate requirements for ESG standards, following applicable standards, directives, or frameworks such as SASB, NFRD, SFDR, EBRD or IFC performance requirements 

Integration Risks

Due diligence with foresight to understand EHS challenges from a post-acquisition integration standpoint (merging management, systems, policies, procedures, and cultures)