Service 06

Services/Technical due diligence and economics

Technical due diligence and economics

For buyers, lenders and boards. Does the value survive a realistic view of production, cost, water, integrity and execution? We keep the technical case separate from the financing structure and say how good the evidence is behind each assumption.

IThe question

Does the value survive a realistic view of production, cost and execution?

Asset transfers are where technical optimism meets a term sheet. In Nigeria, indigenous operators now produce more than half of the crude after the 2024 and 2025 divestments, and the 2026 decommissioning regulations tie approved abandonment plans to annual fund contributions. In the UK, decommissioning spend reached GBP 2.6 billion in 2025 and the regulator expects about GBP 3 billion a year to 2032, with sellers keeping part of the well liability (NSTA, 13 August 2026). A buyer who inherits high water cut, ageing flowlines and a decommissioning fund needs the engineering priced, not described.

We keep the distinctions that move value: nameplate capacity against reliable throughput; production against sales against cash collected; resources against reserves; log permeability against well test kh; a history match against a credible forecast; a design basis against the operating envelope; a removed bottleneck against a solved system.

Each finding is written as evidence, consequence, recommended action and owner, with a severity rating. Where a risk can be handled in the contract, we name the mechanism: condition precedent, escrow, retention, earn-out, warranty, price adjustment or staged funding.

IIWhat we do
  • i

    Asset and acquisition reviews

    Data room review, the gaps that move value, and a test of the production, water, integrity and cost assumptions behind the purchase case.

  • ii

    Project economics

    Cash flow models with volumes, prices, tariffs, capital by class and timing, fixed and variable operating cost by currency, fiscal terms, abandonment and financing. NPV, break-even, unit cost and cover ratios where there is debt.

  • iii

    Independent technical opinions

    Scoped opinions on development concepts, performance assumptions, technical risk and project readiness, with the reliance terms stated.

  • iv

    Lender and board support

    Decision papers, data room question lists, evidence registers, value-of-information ranking and technical input to negotiations.

IIIWhat you receive

Deliverables

  • Technical due diligence report with findings ranked by severity
  • Economic model with sensitivity and break-even cases
  • Evidence register: fact, management claim, estimate, inference
  • Decision paper and data room question list

A data room review for one producing asset takes three to six weeks. Reports carry an Important Notice that states scope, the basis of information, and reliance limited to the named client.

Scope boundary

Reserves certification, competent person reports and formal expert roles need a separate scope and qualified signatories. We do not give legal opinions.

AssosTech · Energy · Engineering

Start with the question


A technical question, a train that will not stabilise, a water balance that will not close, a data room that will not reconcile. Describe it in a paragraph and we will propose the scope.

hello@assostechltd.com · 5 South Charlotte Street, Edinburgh, EH2 4AN