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Investment Projects

We develop investment projects throughout the value chain of Gas, Oil and Energy Project Development, from the visualization of the project supported by the identification of a supply gap in the market.

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An analysis of the market and regulatory risks, the development of conceptual or basic engineering to quantify the initial CAPEX and the required annual OPEX, and the financial-economic analysis of the project that includes the projected cash flow and the expected profitability of the project.

Development Of Investment Projects

The development of an Investment Project includes the following 7 minimum stages, from its conception to the financial-economic analysis that defines the feasibility and level of profitability of the project.

The level of profitability will lead to making the decision to go ahead or not with the project, the permits, and authorizations for the start of construction, execution of the EPC, and the Commissioning and Operation of the project.

1. Conceptualization and definition of the project.

It is the development of a new project from its conception, identifying and quantifying the market that will make possible the recovery of the investment.

2. Market analysis.

It is the development of a new project from its conception, identifying and quantifying the market that will make possible the recovery of the investment.

The quantification of the present and projected market allows us to measure the size of the infrastructure required to serve said market. Depending on the product or service provided, the demand information will be collected from fieldwork identifying potential customers, from a segmentation, substitution, and market penetration analysis, based on the projected prices of the good or service that is provided.

Its level of competitiveness against substitutes is defined, which will define the degree of penetration in the market and the projected sales volumes.
An analysis of the supply is developed that must be able to cover the projected demand. The projected prices are defined, be it regulated or free market.

3. Conceptual or Basic Engineering Design.

The sizing of the infrastructure is defined from the conceptual or basic engineering design, with the use of design software that allows sizing the different components of the infrastructure, with the simulation of the process flows to the required design conditions, pressure, temperature, flow rate, etc.

4. CAPEX.

Defined the engineering design and the specification of the different components of the infrastructure, we proceed to quantify the costs of the construction process of each component and for each discipline, Civil, mechanical, Electrical, instrumentation, etc.

A unit cost structure is built for each activity of the construction process within each component, which results in a CAPEX for each component of the system. Said CAPEX according to the level of development of the study may have a level of certainty according to the AACE Class 4 to Class 2 standard.

4. OPEX.

OPEX (operational expenditure) is the money a company or organization spends on an ongoing, day-to-day basis to run its business. OPEX includes selling, general, and administrative expense, which are costs incurred through the main business activities, or overhead. OPEX excludes the cost of goods sold (COGS), which are costs directly attributable to the production and sales of specific goods and services, including raw materials and components.

6. Break-Even Cost Calculation.

The breakeven price of the good or service is determined, that is, the minimum price necessary for the company to break even to cover all production costs and obtain a profit margin.

7. Sustainability Analysis – Risk and Uncertainty Matrix.

In this stage, an analysis of the market risks (supply, demand, and price) and the regulatory risks associated with the project are carried out. Risk refers to the probability that an event will occur in the future, its probability and potential impact can be quantified, risks of supply, demand, prices, regulatory risks, etc.

An uncertainty is characterized by a lack of predictability. In these cases, it is not possible to carry out an analysis of the probability of occurrence of the event. Events such as Pandemics, Wars, price increases, or collapses. Its possible occurrence in the future and control strategies are established.
We can develop a sustainability matrix, based on an analysis of risks and uncertainties.

8. Economic financial analysis.

With the CAPEX and OPEX defined and the projected sales volume, the economic-financial analysis of the project is developed, which includes the discounted cash flow, considering the minimum cost of capital required by the investor and the level of minimum expected profitability of the project.

9. EPC management.

After the FID, we can manage all the permits and authorizations required for the start of construction. Likewise, we can carry out the management of the EPC, select the appropriate contractor company through bidding, and supervise the EPC until the Commissioning.