Baker & O'Brien, Inc.

Clients

Experience

Financial Institution

Transactions, Project Finance, Turnarounds

Banks and multilateral lenders rely on Baker & O'Brien's extensive industry experience and project management expertise to support their investment banking and loan portfolios. Our consultants have performed due diligence for mergers, acquisitions, divestitures, and project finance; prepared valuations of assets and businesses, and have served as lender's engineer to oversee engineering and construction of large projects. Baker & O'Brien has assisted financial institutions in providing due diligence and serving as independent engineer for a variety of projects, including refineries, petrochemical plants, pulp and paper plants, fertilizer plants, natural gas projects, and toll roads.

Related Experience

  • Acquisition of Crude Oil Gathering System
    Conducted technical and economic due diligence on behalf of commercial bank in conjunction with the financed acquisition of a crude oil gathering system from a major oil company.
    Pipeline, Pricing
  • Ammonia Plant Project Finance
    Served as independent engineer on behalf of a major European bank for the relocation of a 750 TPD ammonia plant.  Work included an assessment of existing and new technology that was to be incorporated in the project.  The due diligence investigation analyzed feedstock supply, reviewed contracts, and inspected progress prior to close of financing.  Monitored construction progress, certified mechanical completion, and witnessed the plant performance test.  
    Commercial Terms Review, Industry Practice/Standard of Care, Operations/Maintenance
  • Ammonia Plant Project Finance
    Served as independent engineer on behalf of a major European bank for the construction of a new world-scale ammonia plant. Prepared a technology assessment, analyzed feedstock supply, reviewed contracts, and advised with negotiation of contracts. Monitored construction progress and mechanical completion, and witnessed the plant performance test.
    Industry Practice/Standard of Care, Operations/Maintenance
  • Asphalt Market Study
    Provided a financial institution with an assessment of the market for paving asphalt in California.  Study focused on current and short-term future markets and included the results of interviews with California paving grade asphalt producers, contractors, and buyers.
    Pricing
  • Bankruptcy Reorganization
    Developed, in conjunction with senior management, reorganization plans for various operating segments of a major trading and transport company. The resulting business plan formed the foundation of the company's successful reorganization and emergence from bankruptcy.
    Operations/Maintenance, Pricing
  • Biodiesel Plant Due Diligence
    Performed a site inspection and advised a potential investor on the commercial and technical risks associated with converting a chemical plant to biodiesel production.
    Physical Asset Appraisal
  • Business/Technology Valuation
    Conducted a due diligence assessment and preliminary economic valuation of an existing business with proprietary technology designed to significantly reduce crude oil exploration and finding costs.
    Pricing
  • Chemical Plant Evaluation
    Provided an independent assessment at a chemical plant of recent maintenance and sustaining capital projects.
    Industry Practice/Standard of Care, Operations/Maintenance
  • Company Reorganization Study
    Following the bankruptcy of a major Singapore-based shipyard, with significant oil interests throughout Southeast Asia, worked with the company's lenders to restructure and reorganize the company's asset base. Made visits to all major company sites and prepared report outlining current status. Recommended the disposition of non-core assets and the reorganization of core assets into a smaller and less highly leveraged entity. Following acceptance of most of recommendations by creditors' committee, company was able to successfully emerge from bankruptcy protection.
    Waterborne/Marine
  • Due Diligence of Gas Gathering and Processing Assets
    Conducted due diligence on gas gathering and processing assets within the Permian Basin in Southeast New Mexico and West Texas on behalf of lending group and prospective purchaser. Conducted physical inspection of the facilities, reviewed operation and maintenance records, assessed gas supply and competitive position, and reviewed financial assumptions and projections to ensure consistency with current gas supply contracts and asset performance.
    Industry Practice/Standard of Care, Operations/Maintenance, Physical Asset Appraisal, Pricing
  • Evaluate Biodiesel Production Facility
    Provided due diligence review of a biodiesel facility in support of project financing. Reviewed capital costs, operating costs, process technology, and maintenance requirements.
    Industry Practice/Standard of Care, Operations/Maintenance, Pricing, Product Quality
  • Financial Model
    Developed a financial model for a large private equity firm to enable estimates of the future financial performance for the major business segments of a large international refining and petrochemical company.
    PRISM Data or Analysis, Pricing
  • Independent Engineer
    Retained as the Independent Engineer for the "grassroots" Tangguh LNG Liquefaction Project in Indonesia.  Prepared the technical due diligence for the US$3 billion facility on behalf of a financial consortium.
    Industry Practice/Standard of Care, LNG, Pricing, Project Feasibility
  • Ion-Exchange Resin Plant
    Performed market study and competitive analysis of an ion-exchange resin plant on behalf of a major government agency bank. Study evaluated the financing of an ion-exchange resin manufacturer in the context of possible sale of the plant.
    Pricing
  • Marine Terminal Development
    Reviewed design requirements and monitored construction, start-up, and operation of a project to develop a bulk liquids terminal.  Work included review of dredging requirement, schedule, and interfaces between this project and a project to export ammonia from the terminal.
    EPC-related, Industry Practice/Standard of Care, Operations/Maintenance, Waterborne/Marine
  • Offshore Pipeline Project
    Served as Independent Engineer on behalf of a major financial institution for a $200 million project to build a deepwater gas and oil-gathering system. Prepared a valuation of offshore pipelines and an onshore gas processing plant for gathering and processing of deepwater Gulf of Mexico oil and gas production in support of structured finance. Certified completion of the project for financial purposes.
    EPC-related, Industry Practice/Standard of Care, Offshore, Operations/Maintenance, Pipeline
  • Paper Coating Plant Project Finance
    Served as independent engineer on behalf of a major financial institution for the construction of a new $100 million paper coating plant. Prepared due diligence, assessed technology, evaluated project scope of work and schedule, reviewed engineering, procurement, and construction contracts, and advised bank with respect to mitigation of project risks.
    Commercial Terms Review, EPC-related, Project Feasibility
  • Valuation of Pipelines and Gas Plant
    Served as independent engineer on behalf of a major bank to value and certify completion of a project to build offshore pipelines and an onshore gas processing plant for gathering and processing of deepwater Gulf of Mexico oil and gas production. The valuation was prepared for the lender in support of $200 million of structured finance.
    EPC-related, Offshore, Pipeline
  • Project Feasibility and Start-Up Assistance
    Retained by a financial institution to conduct an independent assessment of a refinery project to restart and expand idle equipment to produce transportation fuels and lube base oils.  The feasibility analysis included review of project costs, a product price forecast and margin outlook, as well as an assessment of the competitive market environment.  Provided assistance to the lender in structuring terms for loan agreement and establishing project milestones for the funding.  Monitored construction and revamp progress for the lender and certified mechanical completion of the project.  Following start-up of the units, attended performance test runs and provided certifications to the lender that the units met design throughput capacities and products met required quality specifications.
    Pricing, Project Feasibility
  • Refinery Finance Litigation
    Economic damages were claimed by the sponsors of a refinery project in Russia due to a failure to obtain funding from a financial institution.  Examined claim basis, economic assumptions relied on for the project feasibility study, and actual financial results that would have been realized if the refinery had been built.  Provided testimony concerning the relationship between industry margins and the losses incurred by the project sponsors.
    Pricing
  • Refinery Evaluation
    Retained by a financial institution to conduct an independent assessment of an asphalt refinery. In addition to an analysis of the market environment, the assessment included a review of the general condition of machinery and equipment and projected operating performance of the refinery.
    Physical Asset Appraisal, Pricing
  • Refinery Valuation and Due Diligence
    Prepared an analysis of refining and marketing assets for a company that was considering acquisition of shares of a refining and marketing business located in South Korea. The analysis included refining and marketing economics, and due diligence of the facilities.
    Pricing
  • Power Project
    Supported lenders in mezzanine financing for construction of a cogeneration plant in Western Siberia.  Advised as to the collateral value of certain equipment ordered for the project and evaluated the technical capabilities of the company to manage the project under long-term project financing.
    EPC-related
  • Refinery Gasification Study
    Identified and ranked refineries as potential candidates for residue gasification projects.  Screened refineries in terms of their crude capacity, crude slate, bottoms products, hydrogen users, and location to neighboring plants.  Also, provided a macro level review of European countries that would potentially have a synergistic benefit from a gasification project.
    Gasification, Pricing, Project Feasibility
  • Substitute Natural Gas Market Study
    Developed comprehensive market profile of SNG industry and market in North America, including operating and planned facilities, feedstock outlook, project incentives, and environmental issues.
    Environmental, Gasification, Pricing
  • Technical Review
    Performed technical review of chlor-alkali and calcium chloride processes and project plan on behalf of prospective lender. Reviewed the process design packages for the chlor-alkali and calcium chloride production facilities and provided opinions regarding the selected processes and their technical compatibility. Reviewed the project schedule and cost estimate for the facilities and provided input to the prospective lender regarding the appropriate level of contingency. Evaluated the contracting strategy and project execution plan and provided opinions.
    Pricing, Project Feasibility
  • Refinery Operations Snapshot
    Provided client with an estimate of actual crude runs by grade, product yields, and operating costs for a European refinery in 2007 based on our proprietary PRISM refinery database and simulator.
    PRISM Data or Analysis, Pricing
  • Refinery Feasibility
    On behalf of a major Indian industrial organization, prepared a feasibility assessment for a world-scale "grassroots" refinery on the western coast of India.  The refinery started up in 1999.
    Pricing, Project Feasibility
  • Refinery Feasibility Study
    On behalf of a financial institution considering the financing of a "grassroots" refinery project, prepared a detailed feasibility study for the refinery.  The proposed facility was to be based outside of Phoenix, Arizona, where it was to serve the fast growing Phoenix/Tucson area with new "clean burning" fuels.  Analyzed regional product markets, existing and potential competition, alternate crude oil sources and availability, optimum refinery configuration, and by-product disposition.  Attended meetings with potential crude suppliers and product customers.  Feasibility study was also used in negotiations with equity participants.
    Pricing, Project Feasibility
  • Refinery Reactivation and Upgrading
    Worked on behalf of a major investment banking group to evaluate the plans of an independent refiner to upgrade and reactivate its 200,000 barrels per day refinery.  Conducted "due diligence" on the company's plans and specifications, evaluated likely economics, and assessed competitive forces in the marketplace.  Upon closing of the financial transaction, monitored the construction progress, schedule, and budget over a period of four years.  Reviewed all invoices for labor and materials and approved draw down of construction funds in accordance with the contractual agreements.
    EPC-related, Project Feasibility
  • Valuation of Refineries
    Performed valuation of three Russian mini refineries located in Western Siberia.  Work involved market analysis for crude oil and products, logistics infrastructure, refinery configuration and yield, and construction costs.
    Pricing, Project Feasibility
  • Refinery Construction Dispute
    Assisted law firm representing Russian refiner in dispute with U.S. engineering firm that provided a refinery for a location in Russia.  Ascertained construction status of units and reviewed issues in dispute regarding design basis, scope of work, and costs for a modular refinery constructed in the U.S.
    EPC-related, Pricing, Project Feasibility
  • Process Plant Leasehold Settlements
    Assessed the market value of residual operating interests held by a major financial entity in several leased chemical processing facilities. Each engagement included an ongoing advisory role pursuant to successful negotiations for sale of the institution's ownership interests.
    Pricing
  • World Scale Alumina Refinery - Independent Engineer
    Teamed with a mining consulting firm to provide independent engineering support to lenders of a world-scale, multi-billion dollar grassroots alumina refinery to be located in Guinea, West Africa. Reviewed project execution plan and entire design package for the proposed facility, including alumina refinery, power plant, import/export facilities, and all associated infrastructure. Prepared several interim reports during the initial engineering phase before project was abandoned due to political unrest within the country.
    Project Feasibility
  • Terminal Facility Due Diligence
    Conducted financial and operational due diligence on behalf of lenders for a large regional petroleum terminal facility with associated transmix processing and commercial waste treatment operations. Tasks included inspection of facilities, assessment of competitive market position, evaluation of financial performance, and estimation of potential market value for the facilities.
  • Petroleum Terminal Valuation
    Updated valuation of petroleum terminal and trans-mix processing facility completed previously in order to reflect changes in the business environment, and to reflect specific transaction scenarios designated by the client. 
    Pricing
  • Gas Gathering and Treating Due Diligence
    Performed due diligence of West Texas natural gas gathering and treating system. Reviewed contracts and facilities, assessed competition, developed economic model, and estimated market value of assets.
  • Petroleum Refinery Due Diligence
    Prepared a due diligence report on a full conversion refinery, including a review of regional crude oil supply and regional products markets.  Reviewed refinery operations, including high level assessments of refinery safety and environmental performance.  Developed economic model of refinery and estimated market value.
    Pricing
  • Refinery Acquisition Study
    Provided client with five years of operating and financial data from the PRISM refinery database for use in evaluating a potential acquisition.
    PRISM Data or Analysis, Pricing
  • Gasoline and Diesel Terminal Due Diligence
    Performed technical due diligence for terminal assets on behalf of financial firm.  Visited the facilities and reviewed relevant documentation to advise the client on issues concerning the operability, safety, and physical conditions of the facilities and potential future maintenance and capital costs.
    Operations/Maintenance, Physical Asset Appraisal, Waterborne/Marine
  • Refinery Economic Analysis
    Prepared due diligence analysis of refinery technical and economic performance to support a potential working capital loan.
  • Refinery Due Diligence
    Assisted financial client with a due diligence study of a European Refinery.  Visited the site and received briefing from refinery management.  Developed cash flow model of historic and projected operations.  Tuned cash flow model to match past four year's of operations and cash flow results.  Developed five year price forecasts for crude oil and refined products in Europe.  Reviewed operating and maintenance expenses.
    Operations/Maintenance, Pricing
  • Refinery Venture Development
    Performed economic evaluation and developed comprehensive financial models for a West Coast refinery restart and upgrade program.  The engagement included market analysis, evaluation of investment options, and support of project financing efforts.
    Pricing, Project Feasibility
  • Terminal Facility Valuation
    Reviewed the operating results and management projections for a terminal and transmix processing facility to develop an income-based valuation for the business enterprise. This engagement was one of a series of valuations prepared by Baker & O'Brien to support the financing requirements for this business since its inception.
    Physical Asset Appraisal, Pricing
  • CTL/GTL Question-Answer Session
    Presented background information to groups of stock research analysts in New York and Boston on the technologies utilized in gas-to-liquids and coal-to-liquids processes.  In addition, the economics of gasification projects in the U.S. and the role of publicly traded companies in GTL and CTL was discussed.
    Gas to Liquids, Gasification
  • Product Terminal and Transmix Processing Valuation
    Physical asset appraisal and business valuation of a refined product terminal and transmix processing facility. Estimated the replacement cost and deferred replacement value of the physical assets to provide a depreciation basis for taxes. Valued the business enterprise using a discounted cash flow approach based on an analysis and projection of transmix processing and product terminal activities.
    Physical Asset Appraisal
  • Independent Engineer for New Refinery in Egypt
    Technical due diligence for financing of a 200,000 B/D merchant export refinery in Egypt. Our review included opinions on site selection, owner's development plan, supply agreements, offtake agreements, EPC Contracts, refinery unit technologies including sulfur recovery, 'over-the-fence' utility interface, crude oil supply and product export terminal facilities. Our review also included opinions on environmental compliance, licenses and permits, CAPEX, construction schedule, completion risk, OPEX and technical comment to the financial model .
    Commercial Terms Review, EPC-related, Physical Asset Appraisal
  • Product Pipeline Terminal Valuation
    Prepared a terminal valuation based on a discounted cash flow analysis of transmix and terminal businesses and an appraisal of the physical assets.
    Physical Asset Appraisal, Pipeline
  • Wyoming Refinery Appraisal
    Fair market appraisal of a refinery including connecting crude and products pipelines and storage assets to support debt financing. Project included income valuation with forecast prices, discounted cash flows, and replacement cost estimates for the refinery as well as the pipeline and storage assets.
  • Used Refinery Relocation
    Conducted an initial review to identify the status of a proposed refinery project (North Africa) and comment on the potential to utilize the surplus process equipment from a U.S. refinery that had been shut down.
    Project Feasibility
  • Oil Sands Technology Review
    Examined a new oil sands technology for bitumen extraction to identify potential flaws and areas of risk prior to commercialization. Observed performance of and assessed sufficiency of development unit to demonstrate viability and reliability of commercial operations.
    Intellectual Property, Product Quality, Project Feasibility
  • Crude Oil Pipeline System Due Diligence
    On behalf of an investment group, provided technical and operational due diligence of an interstate (FERC regulated) crude oil pipeline system. Our focus included the review of asset integrity, design, system capacity, and operating costs of an existing asset and the design, project execution plan, schedule, cost estimate, and projected operating costs of a proposed pipeline.
    Commercial Terms Review, EPC-related, Operations/Maintenance, Pipeline
  • Refinery Equipment Valuation
    Determined the estimated market value of idle refinery equipment that was designated as loan collateral.  Prepared a report valuing the equipment under different sales scenarios including as an entire refinery, by individual process units, by individual equipment item and as scrap value.
    Physical Asset Appraisal
  • Asphalt Refinery Due Diligence
    Performed due diligence on behalf of a financial institution for funding the startup of an idle asphalt refinery.  Advised client on technical issues related to running black/yellow (Uinta) wax crude in the asphalt refinery.  Work included evaluation of the condition of the process units and infrastructure, assays of feedstocks, analysis of yields, and evaluation of process bottlenecks. 
    Operations/Maintenance, Project Feasibility
  • GTL Facility Due Diligence
    Performed due diligence for a company evaluating an equity investment in a GTL facility under construction.  Reviewed project budget and schedule for completion. Evaluated the amount of contingency included in the budget, confirmed the status of payments to contractors and other service providers, and interviewed project representatives regarding mechanical completion and commissioning plans.
    Environmental, Expert Witness/Testimony, Operations/Maintenance
  • LPG Terminal
    Lenders' Engineer review for development of an LPG terminal consisting of LPG tankage, gasoil tankage, loading facilities, and associated pipelines and equipment.  The facilities were planned to accommodate annual throughput volumes of 1,150,000 tons of LPG and 940,000 tons of gasoil, with minimum guaranteed volumes of 700,000 tons of LPG and 600,000 tons of gasoil with planned future facilities for increased throughput volumes, bunkering operations, and third-party storage.
    EPC-related, Project Feasibility, Waterborne/Marine
  • Lender's Engineer - GTL Plant
    Served as Independent Engineer on behalf of a major Australian bank for the construction of a GTL plant.  Prepared a technology assessment, analyzed feedstock supply, and reviewed contracts.  Inspected equipment and confirmed permits were in place prior to authorizing draw-down certificates.  Monitored construction progress, confirmed expenditures, and compared these expenditures against budget.
    Commercial Terms Review, Environmental, EPC-related, Gas to Liquids, Operations/Maintenance
  • GTL Facility Due Diligence
    Performed due diligence for a company evaluating an equity investment in a GTL facility under construction.  Reviewed project budget and schedule for completion. Evaluated the amount of contingency included in the budget, confirmed the status of payments to contractors and other service providers; interviewed project representatives regarding mechanical completion and commissioning plans.
    Environmental, EPC-related, Gas to Liquids, Operations/Maintenance
  • Gas Recovery Unit Valuation
    Prepared a fair market valuation assessment of a leased refinery gas recovery process unit located within a refinery.  Visited the site and assessed the overall condition of the asset.  Applied a cost approach to value the asset.  The valuation was used by the client to negotiate a buy-out of the leased process unit.
    Physical Asset Appraisal
  • Transmix Facility Due Diligence
    Completed technical, financial, and operational due diligence analysis on behalf of lenders for an existing transmix processing facility and associated terminal.  Tasks included inspection of facilities, assessment of competitive market position, and an evaluation of a new hydrotreater project for ULSD production.
    Commercial Terms Review, Operations/Maintenance, Physical Asset Appraisal, Project Feasibility
  • Terminal Due Diligence
    Performed a technical due diligence of a Gulf Coast refinery tank farm and associated transfer pipelines for a prospective investor.  Reviewed inspection and maintenance records of the assets during a site visit.  Reviewed numerous operating performance documents from a data room.  Prepared a technical due diligence report outlining our findings.
    Operations/Maintenance, Physical Asset Appraisal
  • LNG Due Diligence
    Provided technical support to the sponsor of a multi-train liquefaction project.  The scope of work included:  preparation of a technical due diligence report; in-depth review of the Open Book Estimate (OBE), schedule, and project execution plan; assessment of the EPC contractor’s capabilities and experience; high-level review of geotechnical issues; assistance in the development of an Operating and Maintenance (O&M) plan; input into the formation of sponsor’s project management team; and input into the development of owner’s costs, including appropriate levels of cost and schedule contingency.  Provided support to the sponsor with EPC contract negotiations.  
    Environmental, LNG, Operations/Maintenance, Pipeline, Project Feasibility