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Baker & O'Brien Releases Third Quarter 2020 Edition of Energy Expert: Issues in Focus

November 19, 2020

This quarter’s Energy Expert newsletter profiles three recent Baker & O’Brien engagements, including a refinery business loss, an EPC dispute, and a securities class action matter.  We hope you find the articles interesting and insightful.


Quantifying Refinery and Petrochemical Business Losses: What is the Correct Methodology? - Kevin Waguespack     

A petroleum refinery experienced an emergency power outage that caused equipment damage and a prolonged time to return to normal operation.  Engaged to review the damages claim, Baker & O’Brien assessed:  (1) plant economics; (2) the validity and achievability of the "production plan;" and (3) the typical on-stream performance of the plant.  Our expert report outlined the categories of loss and quantified the damages, which would place the plaintiff in the same position it would have been but for the incident.

 

Gas Processing Plant - Extreme Climate Construction Dispute Leaves One Party in the Cold - Bill Jackson 

Disputes between owners and EPC contractors are often about schedule and budget.  Baker & O’Brien was engaged to opine on the impact of the extreme climate location on project execution considering personnel capabilities and the quality of fabrication and construction work.  Our findings pertaining to mitigation plans, field modifications, logistics plans, site living conditions, and labor productivity were presented to an arbitral tribunal in report and orally.

 

Negative Project Outlook Hits Shareholder Value: What was Known and When? - Shawn McDonald  

As a publicly traded chemical company, an Owner was required to report its progress on an expansion project to its stockholders.  When costs and schedule were reported to be significantly overrun and delayed, stockholders filed a securities class action lawsuit alleging that misrepresentation resulted in a decline in market capitalization.  Baker & O’Brien investigated project management and execution, including progress measurement to assess whether the contractors’ progress reporting was reasonably aligned with the Owner’s contemporaneous reports to its stockholders.



The complete newsletter can be found here:  Energy Expert Newsletter - October 2020