Oct 23 2017
3 min read
Axens is one of the very few technology companies in the world qualified to perform BFS for its client and therefore to promote the project to Financial Institutions.
BFS will serve as solid basis for negotiations with possible partners and financial institutions.
It must contain the relevant technical and financial features that demonstrate that the Project is technically feasible, managerially sustainable, financially profitable, socially acceptable, and not detrimental to the environment. If required, the BFS presents relevant recommendations to avoid and/or mitigate negative impacts on the project.
It addresses 4 major areas in detail:
It’s not only technology wise, but also the coherence of the technical data used by the different contributors (licensors, engineering companies,…) during the project lifetime, the final product pools blending, the consolidated utilities and wastes summaries, etc…. Having one set of eyes reviewing and cross-checking the relevant data ensures the project can go to EPC phase without major design changes or negligence and assure the potential investors and financial institutions that the project is technically consolidated using proven technologies.
Market and Competition study
To ascertain the attractiveness of the project through project lifetime, a market survey is crucial to provide the insights over the future products supply/demand for key targeted markets, the derivers affecting the market as well as price sets. Axens also analyzes the potential competiveness of the Project against potential local and regional competitors.
Financial & Economic Analysis
Axens provides Total Investment Cost Estimates for the project based on the international accepted practice of AACE and the associated Financial analysis, Sensitivity analysis taking into account the conditions of the Oil & Gas Sector and the client’s requirements on financing fundamental parameters. Through this analysis, Axens may provide recommendations and advisory services for improving the economic indicators of the project in order to increase the attractiveness of the project.
Project Execution and business model
Axens will review the status of the Project Execution Plan and the business model that has been put in place for conducting the engineering and construction steps of the project. The remaining stages up to commissioning of the new facilities will be evaluated along with strategy analysis (SWOT) to be sure that all critical steps are properly identified and examined. Likewise, several mandatory project documents will also be reviewed, such as the Environmental Impact Study, and legal documents – Feed Supply and Products Off-Take contracts, and the EPC Contract, among others. The objective is to guide the client and the financers to establish fair, clear and transparent relationships with all parties during the project life.
All project risks will be identified and corresponding mitigations will be worked out throughout the study.
The main key values and competitive edge of Axens as BFS executer are:
|A large experience conducting BFS in the frame of grassroots or major revamping projects. Axens team of experts not only has the experience in conducting such studies but also has a deep understanding of all key factors impacting project feasibility
|A dedicated project team with competencies of technology, project execution, operation, business strategy, etc…are assigned by Axens Performance Programs (P²) in Axens HQ, France, to help the client in an independent and efficient manner
|Team-up with IFP Energies Nouvelles (IFPEN) for the financial analysis and Market analysis. IFPEN is a public-sector research, innovation and training center active in the fields of energy, transport and environment. A team of economic engineers working at IFPEN Economics and Information Watch and Management Division (IFPEN-EWI) will support Axens with combined expertise in oil reserves, O&G market and economic sciences. IFPEN boasts exceptional documentary resources and a unique capital of economic and Oil & Gas market knowledge gleaned over several decades of experience
|And mostly, Axens provides its supports and accompany client’s team, as adviser during strategic discussions or assisting in presenting the results, to financial institutions, investors or strategic partners, upon request.
While providing services worldwide, Axens’ latest references are located in Middle East where Axens Performance Program (P²) is currently in charge of developing BFS for two major investment projects in the region. This gives Axens a unique position and full knowledge of the new era of refining and petrochemical industry as well as current and future visions, perspectives and challenges of these industries.