Case Study

International Oil Company

The Fire

  • One of the world’s largest International Oil Companies wanted to reduce their offshore exploration risk exposure while capitalizing on their proprietary advanced intellectual property technology.
  • Increasing over-regulation by Bureau of Safety and Environmental Enforcement.
  • Declining commodities, industry BOP monitoring rates and Industry Day Rates.
  • Multi-billion-dollar offshore exposure.

The Rescue

  • Conducted an assessment and valuation by interviewing essential department heads.
  • Developed a comprehensive business plan which included complex 60-month proforma financial projections and revenue model.
  • Recommended spin-off of IT IP into another entity to reduce exposure, while developing a contract to provide services back to the company at a significantly lower cost.
  • Assisted company in obtaining a key certification.
  • Engaged central team members with a working live cash flow 5-figure financial model.
  • Recommended additional contractor income stream by offering advanced technology services to other competitors.
  • Locked in industry low costs over a 10-year period with an option to lower them if day rates dropped below certain levels.

The Result

  • Reduced overall risk exposure.
  • Improved cash flow.
  • Increased revenue and profitability.
  • Improved relationships with regulatory agencies.