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Technical: Strategic Planning – Investment Planning and Optimisation

Client engaged Downstream Advisors to review its Capex program over a two year period.

Area of Expertise:

Technical

Project Example

Refinery and Petrochemical Group Capex Review


Context
  • Covid19 pandemic limiting physical meetings

  • Time critical mission with deliverables required less than two months after kick-off


Approach
  • Review of every single capex line item.

  • Every capex item got summarized in a one-pager evaluation sheet

  • Expert judgement and critical review was applied to identify lower-cost alternatives and low- to no-value added investment items

  • Local teams were heavily involved in the review as the owners and experts of their own units


Analysis
  • Over 1000 capex line items reviewed

  • Projects cost reductions split between project cancellations, reductions, delays and postponments

  • Every project modification thoroughly discussed with business teams.


Outcome
  • DAI recommendations implemented as such

  • Overall Capex program was reduced by 120M$/y with no or little profit impact


  • Business teams fully onboard with proposed changes



KEEP IN TOUCH

DOWNSTREAM ADVISORS, INC.

HEAD OFFICE

REACH US

EUROPE

5151 Belt Line Road, Suite 375

Dallas, Texas, 75254

T : +1 972.980.7215

136 Avenue Orban

1150 Brussels, Belgium

M : +32 473.34.34.97

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