Oil, Gas & Power: Refineries Case Study

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.

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.

Refineries case study

£65Bn of valued annually

500+ valuation assignments conducted each year

Over visited

of clients are incorrectly insured

About Rushton International

Rushton International is an independent and impartial asset valuation and advisory firm. We specialise in the valuation of plant, equipment and buildings for insurance purposes. With our team of qualified and accredited valuers, we have the experience, qualifications and expertise to value any asset, anywhere in the world.

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    Insurance Valuations

    Insurance Valuations

    Rushton International is a tried and trusted name in insurance valuations. Our valuation advice assists clients, risk managers and their brokers to accurately and confidentially set sums insured for the fixed assets in their insurance programme.

    Financial Valuation

    Financial Valuations

    We work with our clients to deliver comprehensive valuation advice for financial reporting purposes. By using our sector experience and market knowledge we are able to assist with the valuation of plant, equipment and other specialised assets in order to estimate fair value for GAAP and IFRS financial reporting purposes.

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    Asset Management

    Rushton International provides asset management solutions that are tailored to our clients’ needs. Our work ranges from asset verification, preparation of computerised asset registers and updating asset registers.