ESC conducted an Environmental Liability Assessment in 2021 for a high-volume fuel storage facility including over 20km of above and underground fuel pipelines.
About the Project
ESC advised a confidential oil & gas multinational Client on their long-term liability related to potential future soil and groundwater impact at their leased fuel storage facility with over 100 million liters of fuel storage. The site had experienced previous spills during their lease period and had conducted site remediation to clean up the spills.
The Client’s challenge was to understand the likelihood of such spills to occur again in the future and its financial and other implications on their business, to evaluate their investment now and in the future upon end of the long-term lease.
Through the implementation of this assessment, including desktop review of historical data and interviews, ESC was able to provide the Client with a ballpark estimate of their liability at the end of their lease period based on the occurrence of historical spills and projection of future spills. The analysis was based on most likely case and reasonable worst-case scenarios and took into consideration contractual clauses in the lease agreement and the wider Singapore setting, including local soil and groundwater guidelines.
Upon completion of the interviews and desktop review, ESC was able to provide a liability assessment presentation that was converted into a brief report that clearly provided the client with the anticipated risk and potential for future spills and associated liability.