In the power and petroleum sectors, due diligence is one of the most critical steps in evaluating assets, projects, or transactions. Without it, investors and developers risk making costly mistakes.
1. Technical Assessment
This involves reviewing the condition, performance, and compliance of assets such as plants, equipment, and infrastructure.
2. Financial Review
Analysts examine project costs, revenue expectations, financial models, and long-term viability.
3. Commercial Analysis
Reviewing contracts such as PPAs, GSAs, EPC agreements, and O&M contracts helps identify risks and obligations.
4. Regulatory & Compliance Checks
Ensuring the project or asset meets sector standards and regulatory requirements.
5. Risk Identification
Due diligence exposes technical, commercial, operational, and environmental risks.
Final Thought:
Strong due diligence protects your investment and ensures successful project execution.