Equipment Purchasing Case Study

Equipment Buyout for Large Oil & Gas company

Our client

Project Type: Equipment Purchasing
Industry: Oil & Gas

Our client is a North American energy company that specializes in oil extraction from tar sands.

More recently, the company has invested in renewable energy sources, such as wind power, solar energy and biofuel.

After upgrading their fleet, the company had more than 30 truckloads of surplus and idle maintenance, repair and overhaul (MRO) equipment and parts.

To avoid production downtime, our client stocked a significant amount of maintenance, repair and overhaul (MRO) equipment and parts. After upgrading their generating assets, more than 47,000 pieces of equipment and equipment became obsolete or incompatible.

Our Client's challenge

Prior to engaging with NRI, the client listed out 3 problems they wanted to address:

Challenge #1

Disposing of the inventory would have negated our client’s recent effort to become more sustainable and environmentally friendly.

Challenge #2

Not only would our client have to pay to dispose of their assets, but disposal would negate any potential tax credits the company would otherwise be eligible for if they sold the assets at lower than book value.

Challenge #3

Our client’s MRO included a wide range of equipment and parts, such as control valves, switchgear, instrumentation, and electrical equipment. Independently selling the equipment would have required resources that our client was unable to allocate.

How we helped

Since our client’s surplus MRO and equipment was unused, we purchased more than 47,000 line items at a competitive rate.

This purchase included coordinating transportation of their MRO and equipment from two facilities.

The results

Utilizing an online industrial auction enabled us to:

More Value

Became eligible for more than $8.8 MIL worth of tax deductions

More Space

Removed 47,000 pieces of equipment from their inventory

More Efficiency

Avoided costly equipment disposal fees

More Sustainability

Maintained their ongoing sustainability efforts