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
