Red flag reviews and due diligence for oil and gas transaction support

Understanding the existing and potential technical challenges and value drivers of an unfamiliar asset can be a daunting task, as can trying to get the most value when divesting an existing asset.

Our energy team has significant experience in providing the full spectrum of transaction support, both buy-side and sell-side. Many of the team have held senior roles with major international operators. They have decades of oil and gas expertise, with a diverse range of skills covering any aspect of the potential transaction so you can be confident we can provide a fully integrated team that supports your specific transaction objectives.

Our sell-side support includes collating data for the assets (or company) to be sold, managing your data and building the sales case, preparing an Information Memorandum, hosting physical and/or virtual data-rooms, bid assessment and negotiation strategy and support.

We also have a wealth of experience in buy-side support, with over 50 data-rooms/evaluations completed globally in the past 5 years, on assets with a combined estimated value in excess of US$10 billion.

We offer a two-phase approach to due diligence:

  • a red flag review
  • detailed due diligence

The red flag review is intended to act as an initial screening tool for clients. The review identifies any aspect of the asset or transaction that may prevent the client from moving forward or any aspect that has significant risk with potentially serious consequences.  It will classify any issues identified using a traffic light scheme, including areas that require further due diligence or which may require additional data to be made available in order to evaluate uncertainty or risk fully. The review can encompass all aspects of an asset, from sub-surface to export facilities and will sense check the feasibility of any proposed or planned field (re)development.

Detailed due diligence builds on the initial red flag review. It enables a deep dive into the potential transaction, during which our multidisciplinary teams can address a wide range of technical and commercial aspects. Additionally, we can review any health and safety issues and the environmental, social and governance (ESG) credentials of the asset or vendor.  If required, we can provide an independent commercial valuation of the asset.

All due diligence exercises are carried out by the same teams that have extensive experience in preparing reserves reports or Competent Person’s Reports. As a result, the information gained during the due diligence can be incorporated into such reports if required, compliant with any of the major global stock exchanges to assist you in raising finance for the transaction.

Recent transaction support

  • Physical data-room hosting for farm-in opportunity on an existing oil producing development, offshore Nigeria.
  • Transaction due diligence for a potential portfolio acquisition, UKCS, with estimated transaction value of US$2.1 billion. Work included subsurface technical evaluation, facilities and cost engineering and complex economic modelling of interconnected hub processing and transportation agreements to provide transaction valuations and evaluate upside potential.
  • Transaction due diligence for a potential portfolio acquisition, onshore North Africa, with estimated transaction value of US$1.0 billion. Work included subsurface technical evaluation, including review of volumes and risking for an existing exploration portfolio.
  • Transaction due diligence for a potential oil and gas asset acquisition, onshore Egypt, with estimated transaction value of US$250 million. Work included evaluation of a proposed field redevelopment including secondary recovery and enhanced oil recovery programmes.
  • Transaction due diligence for a potential portfolio acquisition, offshore Malaysia, with estimated transaction value of US$3.0 billion. Work included subsurface technical evaluation of multiple oil and gas assets, review of operating and capital cost budgets, asset integrity and HSE review.
  • Transaction due diligence for a potential oil asset acquisition, onshore US, with estimated transaction value of US$15.0 million, including subsurface technical evaluation, environmental due diligence and transaction strategy support.
  • Red Flag reviews

    • Gordon Taylor

    Red Flag reviews - a high level, independent review of acquisition targets in the oil and gas sector.

    Read article
  • Securing funding for oil and gas exploration in a zero carbon world - the RPS carbon intensity approach

    RPS’ Jason Canning discusses the dual impact of low oil price and the transition to zero carbon, on future hydrocarbon exploration and production.

    Read article
  • Essential upcoming ESG issues for investors & corporates

    Matt Farnsworth, Technical Director – Sustainable Business, ESG & Transaction Advisory, focuses on the EU Disclosure Regulation of the Sustainable Finance Action Plan, from March 2021, and the impact this will have on how an organisation conducts its due diligence, portfolio monitoring and investee company stewardship and engagement.

    Read article

Get in touch

Bradly_Jim_Websize.png

Jim Bradly

Upstream Consulting Manager – EAME +44 (0) 20 7280 3300 EMAIL
Taylor_Gordon_20181812.png

Gordon Taylor

Director, Consulting +44 (0) 1483 746 500 EMAIL
Woking | UK
Kirchin_Andy_09119_waistup_LowRes.jpg.jpg

Andy Kirchin

Managing Director - Technical, Training and Advisory +1 281 448 6188 EMAIL
View profile »
Houston - Chasewood | US
Joseph Tan

Joseph Tan

Regional General Manager - Kuala Lumpur +60 3 2732 8272 EMAIL
Kuala Lumpur | Malaysia

Get in touch

Your contact information:

All fields are mandatory *

Message: