Capability Assessment

A major refiner was looking to move into the refined product trading space and needed an independent insight into its current skill sets and capabilities. Through a series of interviews with management and staff, coupled with group sessions, we provided an evaluation of the corporation’s capabilities and gaps, making recommendations as to what would be needed to establish a successful trading team. We also provided a detailed analysis of their peer landscape and made recommendations as to where in the market they should aim to place themselves (in line with their specific risk appetite and corporate culture).

A major refiner was looking to review and upscale their commercial skill-set around the inputs into the L/P part of the refining process. Through workshops and interviews, Sitreco provided insight and solutions as to how the L/P value process could be improved. This included: advising on best practice; tailor made solutions for individual refineries; recommending new price sets for input into the L/Ps.

Business Development and Business Planning

A major refiner was looking to increase its trading activity and needed assistance in the planning process. We provided a five-year business plan, with recommendations as to how to develop business in managed stages, identified which markets and counterparties to target, what extra resources and assets were needed to support the growth in activity.

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Business and Asset Evaluation and Optimisation

We were employed by a Wall Street Bank to provide an independent assessment of the US$ values of their global oil inventories. This included detailed rationales for the recommended price markers of each individual inventory point. We have also assisted a major refiner in identifying new outlets for their refinery barrels and various producers in finding new offtakers for their crude streams.

Market Studies and Tender Advice

An NGO was reviewing the purchasing processes of a state-owned organisation with a view to recommending improvements and to highlight areas where the process was sub-optimal. We provided insight and advice on the process and tender terms, specifying where these could be improved. A large number of the changes proposed were incorporated into the revised tender process.

Expert Advice

An NGO required expert knowledge for a report on the oil industry in a particular country. We provided detailed insight and analysis, together with recommendations for change. All of our advice was included in the final published report.

We have also provided advice and market knowledge to a number of venture capitalists looking to invest in: shipping, storage facilities and other related infrastructure

Arbitration and dispute resolution

Two oil companies had a dispute over how to evaluate the price premium in a term contract. We were employed to give an impartial ruling on how to interpret the price clause and to set the price of the contract. The clients agreed to settle the dispute basis our recommendations.

Bespoke Training

An oil company was looking to move from marketing their imbalances to actively trading around them. We were asked to design and deliver bespoke training packages – for both their staff and management team. The staff team included: commercial, operations, shipping and back office personnel and the training programme covered all aspects of trading. The management training was an overview of trading, including: risk management, roles and responsibilities, segregation of duties and recommendations around DOA’s.

Why SITRECO?

Long term planning and forecasting can be a challenge. Does anyone know with any degree of certainty where the price of oil will be, or what the global political landscape will look like in five or even two years’ time?

More tangible value can be extracted by making decisions based on shorter term strategies. Sitreco helps clients identify and scope out supply and trading strategies and optimisations which can bring achievable results over the short to medium term. We focus on the specifics of the business and the realities of the market place, providing clear and concise recommendations to enable clients to make confident and informed decisions.

Sitreco’s services and advice are backed by first-hand experience of working on the commercial front-line. We understand how the oil markets work, what factors influence them and use our expertise to add value.

Contact Us

2 Queen Caroline Street, London W6 9DX

+ 44 203 513 8107

www.sitreco.com

info@sitreco.com

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