Oil and gas: financial community, investors and counterparties

We recognise that technical asset risk is a major concern. What is the real geological structure in the subsurface? How producible are the hydrocarbons? How reliable is a production forecast? How reliable is a company’s internal validation process? It may be difficult to be sure of the quality of information available.

Technical risk associated with a particular asset, project, or proposal for financing is often harder to assess, or more uncertain, than the traditional financial risks.

To give confidence, from a financial profession perspective, we can provide an in-depth statistical review and validation of the accuracy of such as:

• production forecasts
• reportable quantities such as HCIIP
• reserves classified by PRMS categories

Working with professionals such as geophysicists, reservoir engineers and petroleum economists, we can undertake thorough, technically competent review of technical asset risk.

Supporting your due diligence process, we can apply actuarial valuation and pricing techniques to give you a fully integrated view of risk, including:

• non-transferrable, inherent risks such as subsurface risk
• inherent risks transferrable through hedging or insurance arrangements
• external risks such as commodity pricing, or fiscal regime change
• traditional financial risks
• assessment of the impact on corporate valuation and capital management
• assessment of the quality of existing risk management processes

We can also support review of high value proposals such as a Field Development Plan, applying our Validation Framework of questions developed in partnership with industry experts.