Creating Value by De-Risking Upstream Oil and Gas Investments

Challenge

An international investment management organization needed transactional advisory and technical environmental support to acquire more than 51,000 acres of upstream assets. The target assets included more than 1,600 wells and ancillary production operation facilities that required thorough evaluation for significant environmental issues and related potential compliance or production constraints.

Solution

TRC provided a team of seasoned exploration and production experts to implement an asset-wide evaluation program that included: site inspection teams equipped with TRC’s proprietary mobile technology/data collection systems; the creation of a GeoDatabase catalog of over 1,600 high priority production wells/facilities; and a management database that delineated baseline conditions for each site. TRC’s assessment included a detailed risk quantification, cost estimates to address individual known and potential environmental risks, and an environmental Social Governance Assessment.

Result

The client was able to timely evaluate, identify, quantify and negotiate deal terms related to identified material environmental defects, leading to the successful $900 million acquisition.