Warehouse Closings and Consolidations
Most oil and gas companies pay hundreds of thousands of dollars to store and maintain equipment every year. Requis can help with keeping warehousing costs in check – while providing an attractive cost recovery percentage as well.
The challenge:
An operator was sitting on several million dollars’ worth of unused equipment and materials. With an additional drilling project closing down, the company wanted to make room for assets it was hoping to redeploy without having to pay for additional storage.
The solution:
Posting the assets on Requis yielded better results than past experiences selling directly to brokers. For most of the equipment, the operator was able to recover 35% of the purchase price, versus the standard 10% from selling to a broker.
Requis’ concierge team were able to help find buyers for most of the equipment in a relatively short time. The team leveraged Requis’ global network of contacts to put the equipment in front of interested buyers.
Impact:
Aside from the increased cost recovery on the unused equipment, the operator was able to avoid the costs of additional warehousing and maintenance.