An Asian LNG company required its legal documents to be translated into a set of operational processes in order to maximise the value of its long-term tolling agreement.
A major industrial conglomerate based in Asia had established a long-term tolling agreement at a liquefaction terminal in the USA and required a detailed review and analysis of the suite of commercial documents (totalling over ten legal agreements and operating manuals).
The client required the conversion of the legal documents into a set of operational documents to be used by the team – rights and obligations, detailed process maps, staffing, information systems landscape, etc. – in order to prepare for operations and maximise the value of its long-term tolling agreement. In addition, Baringa was asked to develop detailed written procedure documents describing the processes and associated activities.
Baringa translated all contracts and related commitments into a set of process maps, along with roles and responsibilities across the organisation, and information system requirements to ensure timely operations readiness and maximise the value of the agreement.
We developed a detailed process-view of the firm’s LNG operations activities and interaction points with third parties. This included the development of Standard Operating Procedures (SOPs) which were then reviewed and confirmed with internal experts and third-party manuals.
In addition, we enhanced the client's understanding of the complexity of the commercial and contractual landscape, and offered recommendations on people, system and organisational needs for a successful go-live.
Outcomes and Impact
A basis for the establishment of the commercial operations function, including:
• Rights and obligations register for each legal agreement
• Defined business processes, schedules and functional requirements
• Organisation and staffing plan
• Recommendations for information systems
• Abnormal operations process review and recommendations
• Standard Operating Procedures (SOPs) for key commercial operational areas
• Implementation plan through to commercial go-live