Petroleum Refining

Location: Puertollano, Spain

Scope of Engagement:
  • Damage to crude distillation units at a key Spanish refinery causing a total shutdown;
  • Measurement of a complicated business interruption loss resulting from the loss of downstream profits at all business units.
Quantum:
  • In excess of US$100 million.
Unique Aspects of Engagement:
  • Worked closely with a multidisciplinary team to provide comprehensive analysis of affected revenue streams and the downstream impacts to profits;
  • Completed a complex recreation of the insured’s linear planning model in calculating the overall loss;
  • Analyzed all business segments including, but not limited to, lubes and asphalts, petrochemicals, aviation and specialty products.

Location: Aconcagua, Chile

Scope of Engagement:
  • Damage from corroded piping and a subsequent explosion to a Naphtha Hydrotreater (NHT) at a Chilean oil refinery;
  • Measurement of business interruption loss from the downstream affects of losing the NHT.
Quantum:
  • In excess of US$5,000,000
Unique Aspects of Engagement:
  • Quantified the loss from the insured’s having converted the Mild Hydrocracker into a temporary NHT in order to maintain standard process flow of naphtha at the facility;
  • Removed the effects of a 10-day earthquake that occurred during the interruption period;
  • Worked closely with the insured’s engineers to model crude slate and finished products but for the loss and the resulting gross profit that would have been achieved;
  • Worked closely with the adjuster in order to prepare a business interruption calculation of lost net income plus insured standing charges (as per policy wording).