Investments in long-life assets involve significant uncertainty about the availability of inputs to sustain the commercial operation of the assets and of markets for their outputs. Liquefied natural gas (LNG) plants are like this, with capital costs in billions of dollars and operating lives exceeding 20 years. This case shows how a simple set of scenarios was used to help an LNG seller to anticipate what might happen in the future so it could draft appropriate terms and conditions, including conditions precedent, for a long-term contract.
Creating value from uncertainty
Broadleaf Capital International is a specialist risk management consultancy. Our expert team brings decades of experience, leading methods and a deep understanding of risk and its management. We operate around the world.
Latest from Broadleaf
The Financial Services Institute of Australasia (FINSIA) has upgraded Dr Dale Cooper's membership status to Fellow.
Although Broadleaf often provides bespoke training for its clients in all aspects of risk management, ordinarily we do not hold public courses. However, our experience over many years has enabled us to understand the minimum knowledge and skills people need to manage risk effectively in any organisation. This is the background to this series of ten, short presentations that provide an outline training course in modern-day risk management. While the course is aligned with ISO 31000, the language and concepts presented reflect best practice approaches which are both relevant and understandable. We will be issuing the modules on a monthly basis.