In 2020, a large petrochemical client engaged JEM Advisors to assist in implementation of a new digital modernization project that was focused on deployment of Electronic/Digital Permitting (E-Permit) in operational assets.
Benefits of Implementation of E-Permit Digital Project:
JEM is assisting an international midstream company create a growth strategy which includes expansion into new asset classes. The client had initiated multiple feasibility studies on new projects including storage, transmission, blending and production as both owner operator as well as investor in green fuels and carbon capture technologies.
Our team effort was tasked to rapidly formulate principles and strategies to ensure thoughtful/successful operating and technical approaches for these breakthrough technologies. Initial efforts were focused to define the objectives and to facilitate a detailed SWOT exercise with senior cross functional leaders of relevant functions and departments. Consensus of current strengths, weaknesses, opportunities, and threats was rapidly generated for near term opportunities.
In addition, JEM was able to adapt its proven procedure and process for Operational Readiness and project planning into the client’s current stage gate project process for these new classes of projects. The combination of this adaptation of a tried and tested process together with the SWOT allowed proposals to be properly analyzed by the client’s executive team for these emerging technologies.
JEM is continuing to work to ensure that the client’s management systems are streamlined and flexible to be fit for purpose for the unique needs of a more entrepreneurial and flexible marketplace.
Challenge:
JEM Advisors have led dozens of Operational Readiness Reviews for various clients for capital projects and turnarounds. Each client / project has unique challenges, from having the right design/equipment selection to being fully ready for safe and efficient commissioning and startup of facilities.
Action:
JEM Advisors have a well-developed standard protocol for “cold-eyes” peer reviews of industrial capital projects. Our methodology can be tailored to each client’s and each project’s specific needs. Industry best practices and JEM Advisor experiences are captured in the JEM Operational Readiness tools, including guidelines, organization charts & job descriptions, operations readiness plan (ORP) template and checklist, and recommended performance metrics.
We have reviewed projects in various stages of completion and recommend the Operational Readiness Process be started in early project phases (pre-FEED) for maximum benefit.
Results:
JEM Advisors have demonstrated that a robust Operational Readiness Process with structured independent reviews add significant value in the following aspects of project development and execution:
JEM Advisors provide expert testimony for litigation support. Our specialty is in the energy arena. In several potential litigation support cases, we chose not to provide expert testimony due to our understanding of the litigation issues. We would have been on the wrong side of the table - and our ethics only allow us to provide expert support while maintaining our integrity.
Each client / litigation challenge has unique requirements. JEM Advisors are selected to provide the expert testimony on the details required including operational excellence, maintenance excellence, technical excellence, and reliability excellence. We have the ability to review past operations and operational upsets to arrive at root causes for events that were significant to require legal litigation to identify the appropriate retribution.
We provide this expert testimony in a “plain English” manner that makes it easier for counsel as well as potential jurors to understand. Our experience has been that when counsel truly understands the issues it strengthens the overall position.
JEM Advisors have conducted due diligence for refinery purchase decisions. In the two most recent evaluations, we identified no major cost items greater than $1 Million that would impact the purchase price for one of the refineries, although there were a number of upgrades that when added together would sum to well over one million dollars. For the second purchase evaluation, that refinery had many issues that would require several millions of dollars to rectify to be compliant with RAGAGEP (Recognized and Generally Accepted Good Engineering Practices), thus the purchase decision did not move to fruition.
Each purchase decision has unique challenges to consider, but through boots on the ground assessments, data review, and interviews, JEM Advisors can quantify the big-ticket issues that impact operations following a refinery purchase. Our level of detail is driven by the desired order of magnitude gaps to be identified by the prospective purchaser.
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