Oil and Gas Consultancy
Mohamed A Mourabiti, Head of Oil and Gas Consultancy
Actuarial and risk management expertise for the energy industry
M & A Resources brings a variety of actuarial and risk management skills to bear on the problems faced alike by the Upstream Oil and Gas industry, and those who provide its finance and manage its risk.
M & A Resources is independent firm of actuarial professionals in the UK; our consultants have many years' experience across a broad spectrum of actuarial skills.
The present environment of low commodity prices, rising exploration costs, and constrained access to capital has increased the need for in depth, accurate and complete analysis of uncertainty, risks and valuation. Many investors and providers of capital recognize that accurate assessment of the quality of assets is inherently difficult, but of key importance.
The Upstream Oil and Gas industry faces unique and complex problems associated with natural uncertainty, project and engineering risks, unpredictable commodity prices, and the associated operational and financial risks. Understanding, managing and valuing the risks associated with uncertainty and natural variation are core skills for the actuarial profession.
By integrating our high quality analysis of uncertainty and risk, decision analysis, stochastic and financial modelling, we can more accurately validate technical estimates and valuations at asset, portfolio and corporate level, providing reports for both internal and public use, compliant with PRMS or local standards as required.
Supporting your due diligence process, we can apply actuarial valuation and pricing techniques to give you a fully integrated view of risk. If multiple partners or state interests are involved, for example in a proposed acquisition of a share of an asset, we can assist in reviewing the associated risks, such as dependence on a partner's financial soundness, continued participation, equipment or skilled personnel.
Risk transfer products are priced to reflect both estimated risk (calculated according to some model) and model risk (which depends on confidence in accuracy and appropriateness of the risk model itself). As a rule, you always pay for uncertainty; reducing model risk will go towards ensuring that you get the best possible quotes, based on the true underlying risk.
In a high cost, low commodity price environment, the depth and quality of decision analysis is ever more important. Bringing an actuarial approach to framing complex decision problems, we can ensure that risk and uncertainty are modelled in full depth in influence diagrams or decision trees. Analysis can include full stochastic modelling, accounting for correlations and dependencies.
We recognise that data quality is fundamental to the quality of risk and decision analysis, and that effective transfer across stage gates can unlock significant value. Uncertainty and risk can persist as a project advances, but information may be lost as the focus of attention shifts, for example from geosciences to reservoir engineers to economists and the legal team. Such losses increase financial risk; we can quantify the impact, and help to ensure that valuable risk data is retained across disciplines.
Working where needed in tandem with industry professionals such as geoscientists, reservoir engineers and facilities engineers, we can provide in depth analyses for the industry at project, portfolio or company level.
We can give a professional opinion on the statistical assessment of the quality of valuations, assets, production forecasts and field development proposals. We can also support assessment of insurable risks such as supply chain interruption, political risks or natural hazard, integrating this with review of non-insurable or hedgeable risks to provide a holistic risk assessment.
For investors and financiers, we can provide an actuarial and financial perspective to support your valuation and due diligence process, for example reviewing the effectiveness of a company's risk management strategy. Statistical and financial modelling and risk based valuations are core skills for the actuarial profession.
We have in-house Insurance and Financial Risk teams, who work with our Oil and Gas team and industry experts at all stages of the asset lifecycle and have access to the best available data to support modelling of all natural and man-made insurable risks.
We have many existing relationships with providers and managers of private equity and debt finance, as well as Insurance, Options and other risk transfer products.
Our Oil and Gas services are tailored specifically for the industry, combining a view of technical uncertainties with a commercial risk and decision perspective across the lifecycle.
If you need to raise capital or finance, or transfer financial risk, we can help you present your proposals and analyses tailored specifically for the financial community. Highlighting the factors of greatest interest to investors can greatly improve their confidence, by simplifying their analysis of technical reports written from an engineering or geological perspective.
Our core expertise includes the valuation of anything involving uncertainty and risk, and capital management. As actuaries, we offer a rigorous set of statistical, analytical and reporting skills and strong professional conduct standards, all of which are core to the actuarial profession.
Review of the availability and impact of different methods of financing and proposals for raising finance. We can provide economic assumption setting, projections for commodity price, interest and inflation, exchange rates, availability of financing options.
Independent review of forecasts and risk analysis, for your existing assets or potential acquisitions. Working with professionals such as geophysicists, reservoir engineers and petroleum economists, we can undertake thorough, technically competent review of technical asset risk.
Technical risk associated with a particular asset, project, or proposal for financing is often harder to assess, or more uncertain, than the traditional financial risks. Building on our in-depth knowledge of the upstream Oil and Gas industry and applying our actuarial expertise in statistics and financial modelling, we can provide independent statistical reviews, in depth.
If you require further information on our Oil and Gas Consultancy service please contact: Mohamed A Mourabiti, Head of Oil and Gas Consultancy +44 79 3553 1912, info@ma-resources.co.uk
We recognise that technical asset risk is a major concern for the Financial community, investors and counterparties. What is the real geological structure in the subsurface? How producible are the hydrocarbons? How reliable is a production forecast? How achievable is the commercialisation plan? How reliable is a company's internal validation process? It may be difficult to be sure of the quality of information available.
Technical risk associated with a particular asset, project, or proposal for financing is often harder to assess, or more uncertain, than the traditional financial risks. Building on our in-depth knowledge of the upstream Oil and Gas industry and applying our actuarial expertise in statistics and financial modelling, we can provide independent statistical reviews, in depth.
M & A Resources has extensive actuarial resources. We have the capacity to react quickly when our advice is needed promptly. We are uniquely placed to help bridge the gap between technical disciplines and risk, natural, geopolitical or economic uncertainty, and finance.
If you require further information on our Oil and Gas Consultancy service please contact:
If you require further information on our Oil and Gas Consultancy service, please contact us today.
Mohamed A Mourabiti, Head of Oil and Gas Consultancy
London, UK