Project brief

We were appointed to value three refineries and their related assets for a client. The refineries were established in the 1960s, 70s and 80s.

The refineries have been built and then extended to increase capacity over time, with the client owning additional assets such as a housing complex, pipeline and terminal. Due to the expansion of the refineries and the development of new facilities, the client wanted a current and correct reinstatement value for the assets.

Our approach

The valuation team attended the site and collated information on the assets to be valued. Prior to the commencement of the exercise, we requested some information on the assets to be valued. This information was analysed by the project team and inputted into our cost model database.

We agreed on an inspection schedule with the client and completed the site surveys on the designated dates. The valuation team verified the quality of information provided by the client and prepared asset schedules on each facility.

The valuation was completed away from site by pricing the principal assets and preparing a cost model for each facility. In order to check the accuracy of the valuation, we also completed secondary valuations by reviewing the facilities against recent costs of similar assets and by indexing historical values.

Benefits

We helped the client by providing them with a detailed valuation report, which provided a breakdown of value together with a detailed asset register per refinery. The valuation report identified the values for areas of the refinery. This split of values helps with EML and partial loss scenarios.