Panorama Consulting

Understanding Due Diligence in the Energy Sector

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.

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