Disputes & Valuation
Companies with oil and gas assets require in-depth understanding of energy market dynamics that affect their holdings, including the regulatory environment and macroeconomic conditions. With our deep industry expertise, including former senior regulatory officials and valuation experts, FTI Consulting professionals understand the key drivers of the value of energy industry assets. We provide valuation opinions and expert testimony in traditional commercial disputes, including matters of economic damage, post-transaction disputes, professional negligence and stakeholder controversy. We also offer valuation opinions and expert testimony before international arbitration tribunals. We regularly bring our energy market expertise and expert witness pedigree to bear in multibillion dollar energy industry disputes.
Our Service Offerings
Natural Gas Price Disputes
The European natural gas market is still recovering from the aftermath of what many refer to as the “perfect storm” — the liberalisation of natural gas from capital monopolies to market-based pricing, the aftershocks of the 2008 financial crisis and the discovery and production of shale gas in the U.S. The result has been a significant reduction of demand for natural gas and a substantial increase in supply, creating highly price-competitive markets. Such an environment has given rise to many disputes between producers and midstream distributors. FTI Consulting energy professionals have deep expertise in the European natural gas sector and are well versed in international arbitration about the pricing of gas. We act as economic experts, providing analysis of how markets are changing and how the pricing of natural gas should change to reflect changes in those markets.
Many development contracts in the upstream oil and natural gas sectors are long-term, 10 to 15 years in duration. But because of a variety of reasons, many companies find themselves in positions where it is not commercially sustainable to function under the original contractual conditions. Breaches of these contracts are not uncommon. Clients rely on FTI Consulting and its deep energy expertise and extensive industry contacts for advice during every stage of a breach of contract matter, from early case assessment and discovery to case strategy, damages analysis and settlement services.
In the upstream oil and natural gas sectors, costs often come into question in new construction, renovations, expansions and acquisitions, as well as in properties already on company balance sheet and those that have been sold. FTI Consulting energy professionals review costs down to as much detail as records will permit. Ideally, our investigation will drill down to invoice level and comparing that invoice to actual payments and how those costs compare to contractual arrangements and terms.