Refinery Reliability
Strategy and Business Excellence | Consulting

Success in the asset-intensive process industries demands cost leadership. Industries such as upstream, midstream, refining and petrochemicals are capital-intensive, generate higher fixed costs and lead to higher minimum efficient scale (MES). MES is the output level – a function of scale and complexity – at which long-run costs are at a minimum thereby delivering sustainable competitive advantage. The implication of this is that assets operating below the MES have to drive competitive advantage in their business over shorter horizons.

Where capital is constrained, market volatility is high and significant capital investment isn't a viable option, achieving production-centric competitive advantage is vital – that doesn't just mean scale and complexity.

Delivering production-centred competitive advantage starts with holding the optimum portfolio of assets and projects in relation to the business environment for which capital can be allocated most effectively, feedstocks sourced and products placed into the market. In doing so, ensuring working capital efficiency. Thereafter, smart operations delivering manufacturing excellence through focused technology application, production integrity and sustainable workforce development ensures safety, cost containment and overall enhancement of profitability.

Investment Decision Support

Enabled by KBC Energy Economics' capabilities in petroleum market economics analysis derived from the acquisition in 2002 of Petroleum Economics Ltd (PEL), we deliver data-driven investment decision support to asset owners and operators to help them deliver maximum value to shareholders through:

  • Business and financial analyses / modelling
  • Crude and product price forecasts based on market fundamentals
  • Market insights, studies and competitor analyses
  • Crude valuation based on 5-cut yield gross product worth (GPW) methodologies
  • Capital allocation and portfolio evaluation
  • Feasibility studies, investment appraisals and due diligence (technical, commercial and HSE)


Our solutions are ROCE-optimised; they help in the planning of investments / divestments and development of operating strategies. We define, discover and develop sustainable investment concepts that meet the needs of the market over the life of the asset as efficiently and profitably as possible, entailing minimum capital expenditure. We deliver solutions for commercial optimisation of assets taking into account the full value chain, including product market demand, competitor pressures, facility processing constraints and feedstock supply options.

Business Operating Models

In asset operations converting strategy to results requires the alignment of people, systems, and tools to deliver safe and reliable production while ensuring value to all key stakeholders. This goal is achieved by integrating the Business Operating Model (BOM) with the Organisational Model, defining clear decision rights and governance, and monitoring and driving results through proper performance systems with the right metrics and incentives. How that goal is achieved is at the core of proper application of Operational Excellence. In this area we help asset owners and operators get three elements right to deliver Operational Excellence:

  • Operating models built on a sound strategies that incorporates asset and organisational strengths and capabilities
  • Integrated operating management system (OMS) processes that are aligned and enable the production plant and organisational discipline to execute industry best practices flawlessly, day-in day-out
  • Business practices aligned with underlying corporate philosophy with a sense of ownership and desire for top performance.



Our Operational Excellence model contains the processes, practices, and procedures of how the business should be operated and monitored, and how the staff interact with and influence the business. The model outlines the vision, objectives, and ambitions of the business, defines the operating business model and continuous improvement process, and clarifies the roles, behaviours, codes of conduct, and governance that the staff utilise as part of their involvement in the business.

 

Outlooks on Energy

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