We make recommendations on possible financing structures and on the overall technical-economic feasibility. AWR Lloyd relies heavily on local resources and connections to gather information and basic analysis to support recommendations. AWR Lloyd also offers a contractual and commercial advisory service focused on the valuation and negotiation of PGAs, fuel supply contracts and oil lease agreements, in collaboration with client-appointed lawyers. In cases where projects require long-term raw material supply contracts (e.g. B the supply of fuel for electricity projects) or long-term purchase agreements (e.g. .B. tank lease agreements for oil tanks), AWR Lloyd can help identify and select potential suppliers or buyers – and can help negotiate such contracts. For example, AWR Lloyd worked with an oil storage and terminal company in Southeast Asia, which has a storage capacity of more than 2 million barrels, to enter into its first long-term fuel lease agreement with a large oil refining company after a period of financial restructuring. AWR Lloyd supported the development and negotiation of the agreement.
We then advised the refuelling warehouse on the activation of its free zone license and introduced a large Singapore-based oil trading company as a new customer. Since then, AWR Lloyd has negotiated and guaranteed with the commercial customer four medium-term agreements for the supply warehouse, including a sub-contractual profit sharing and commercial profits. When it comes to financial models of projects, we focus first of all on building a series of assumptions and scenarios. We do this by combining our own experience, networks and databases, site due diligence, information and databases of our customers, estimates of engineers and public sources. In most cases, an independent technical consultant or technical advisor is appointed by the client and their cost and schedule estimates are central to a “base case” of assumptions. The main assumptions (depending on the sector) are typically the project construction schedule, investments, operating cost structure, raw material and raw material prices, demand and use scenarios, off-balance prices, depreciation, taxes, debt financing and cost of equity. Our studies include analysis of the dynamics and structure of potential market demand, pricing, competitors, competitive advantages, preliminary technical parameters, infrastructure, transport and logistics, sponsors, management, HR, socio-environmental issues, development costs, operating cost scenarios and capital value. . . .