National Governments that have large amounts of capital tied up in strategic inventories and related facilities have become increasingly aware of the significant cost involved. Masefield offers a comprehensive service to assist in the extraction of value from these otherwise “idle” assets. Our expertise in this specialised area has been developed in association with our client base of both private companies and government entities, which has grown since 1990.

The Masefield approach to Inventory Management involves the conversion of non-active capital, in the form of Strategic Inventories of crude oil and refined products, into revenue earning assets. This  involves:

1. The financing of strategic inventory, storage assets and/or the full utilisation of the storage assets. Masefield is able to assist governments in optimising infrastructure option values on a non-speculative basis.
2. Borrowing oil when the price structure allows. On completion of a transaction the process is reversed, as replacement product is returned to the client. The return of the oil and the strategic function of the reserves are guaranteed by a first-class international bank.

Masefield specialists embrace a wide range of objectives to achieve efficient stock management, which include the following:

• Reduction in the cost of holding strategic inventory
• Improving utilisation of the storage asset
• Optimisation of crude and product supply
• No exposure to oil price risk or fluctuations in interest rates and foreign exchange
• Optional incorporation of quality changes according to domestic specifications or regulation.