Downstream: Process & Technology: M&A IT Transition

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Downstream: Process & Technology: M&A IT Transition

Independent refining company (“the Company”) produces gasoline, diesel fuel, jet fuel, lubricants, and asphalt. The Company operates four complex oil refineries with a total crude oil processing capacity of 405,000 barrels per stream day (bbl/sd). In May 2021, the Company announced that it entered agreements with the former owner/operator (“the Seller) to purchase a 149,000 bbl/d refinery located on the U.S. West Coast, as well as on-site cogeneration facility and related logistics assets, for $350 million.

READ MORE: Downstream: Process & Technology: Refinery M&A IT Transition

Opportune was engaged to help plan and execute the transition activities associated with the acquisition of the refinery. A few highlights of the Opportune team’s M&A IT transition efforts included:

  • Worked with the Company to augment its internal M&A integration tools and artifacts with content from Opportune’s “M&A Methodology” and create a comprehensive execution playbook for this acquisition and future ones.
  • Assisted in the development of the execution plans and coordination activities with the Seller after the transaction was announced.
  • Led the team transitioning the hydrocarbon commercial and inventory management activities from the Seller’s systems into the Company’s systems.
  • Coordinated workshops with IT, the business, and the Seller to finalize change-in-control (CIC) plans and the transition service agreement (TSA).

Opportune added value to the engagement by providing deep knowledge of refinery yield accounting, downstream hydrocarbon supply chain, and commercial activities, and the IT solutions used to support those business processes.

READ MORE: Midstream: Process & Technology: M&A Systems Integration

The M&A process of a new downstream refining asset is an exciting time for any company, with growth and new possibilities on the horizon. Realizing those possibilities, however, doesn’t come guaranteed with the purchase price—downstream assets are large, complex operational businesses that require preparation and careful integration. Opportune has assisted numerous companies through successful M&A integrations, playing key roles in nine refinery acquisitions (and counting). Leveraging our extensive downstream M&A experience, we develop a framework of plans and accelerators to guide acquisition teams from due diligence through full integration of a refinery into the business.

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Steve Roberts

Steve Roberts


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