MIRA
INFORM REPORT
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Report Date : |
31.05.2007 |
IDENTIFICATION DETAILS
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Name : |
J. RAY MCDERMOTT
MIDDLE EAST |
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Registered Office : |
Jebel Ali Free
Zone, |
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Country : |
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Date of Incorporation : |
April 1989 |
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Legal Form : |
Branch of a Foreign Registered Corporation |
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Line of Business : |
Engaged in the engineering, procurement, construction and installation
of specialised offshore fixed platforms and marine pipelines used for
development drilling, production and transportation of oil and gas in the |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
US$ 1,000,000 |
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Status : |
Branch of Foreign Company |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
SUMMARY
Company Name : J. RAY MCDERMOTT MIDDLE EAST
Country of Origin :
Legal Form : Branch of a Foreign Registered Corporation
Registration Date : April 1989
Total Workforce : 250
Line of Business : Engineering, procurement, construction and installation of
offshore platforms and pipelines.
Financial Condition : Unknown
Payments : Nothing detrimental uncovered
COMPANY NAME
J. RAY MCDERMOTT
MIDDLE EAST
ADDRESS
Registered & Physical Address
Location : Jebel Ali Free Zone
PO Box : 3098 / 16961
Town :
Country :
Telephone : (971-4) 8835200 / 8835100
Facsimile : (971-4) 8835486 / 8855527
Premises
Subject operates
from a large suite of offices and a fabrication yard that are leased and
located in the Jebel Ali Free Zone.
KEY PRINCIPALS
·
Kurt
Nelson General
Manager
·
Hafez K
Aghili Assistant
General Manager
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Matt
Scott Finance
Manager
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Peter
Marlow Marketing
Manager
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V.
Fornari Personnel
Manager
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P.
Jamieson IT
Manager
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Clint
Anderson General
Manager – MCCI Department
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Vikran
Joshi Engineering
Manager – MCCI Department
LEGAL FORM &
OWNERS
Date of Establishment : Subject was
incorporated in April 1989 and was established in the Jebel Ali
Free Zone in 1990.
History : Subject was incorporated in April 1989
under the name of “McDermott ETPM East Inc”.
However in February 1998,
subject changed its name to the current style of “J. Ray
McDermott
terminating the worldwide joint
venture between the US-based J. Ray McDermott Middle
East and
Under the agreement McDermott
assumed full control of the Jebel Ali fabrication yard.
Legal Form :
Subject is the United Arab
Emirates registered branch of J. Ray McDermott Middle
East, a Limited Liability Company incorporated in
of McDermott International Inc of the
J. Ray McDermott Middle East in
the
Foreign Registered Corporation
with its registered office located at the following address:
A Branch of a Foreign
Registered Corporation is not a legal entity in its own right.
Responsibility for payments lays
in the hands of the company where it is originally
registered.
Under these circumstances, we
strongly advise that any international trade credit should
only be written under the name
of the main company where the subject holds its
registered office, in this case
the
AFFILIATED COMPANIES
Subject is a member of the McDermott Group, headed by McDermott
International Inc, a
·
McDermott
Dubai
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Babcock
& Wilcox Investment
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Babcock
& Wilcox Company
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B&W
Energy Investment Co
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Creole
Insurance Co Ltd
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Hudson
Engineering & Management Corp
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Hydro
Marine Services Inc
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McDermott
– ETPM VOF
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McDermott
(
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McDermott
International Investments Inc
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McDermott
Scotland Ltd
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Varsy
International NV
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HeereMac
LINE OF BUSINESS
Operations : Engaged in the engineering, procurement, construction
and installation of specialised offshore fixed platforms and marine pipelines
used for development drilling, production and transportation of oil and gas in
the
During 1993, subject completed two jackets for Agip that were
installed off
Current
Contracts
In May 2001, subject announced that it has been awarded an
engineering, procurement, construction and installation (EPCI) contract with
Qatar Petroleum (QP) for the development of a new offshore wellhead platform
and associated pipelines for its Maydan Mahzam (MM) fields, offshore
The scope of work requires J. Ray McDermott to fabricate a four-leg jacket and topsides that will weigh a total of 950 metric tons, along with 48-inch piles that will weigh 425 metric tons. The pipeline scope will comprise two new lines - a six-inch LP bulk flowline and an eight-inch gas lift pipeline between existing facilities and three spur lines to subsea tie-ins.
This is the second EPCI contract within a month that J. Ray
McDermott has been awarded in offshore Qatari fields. Ras Laffan Liquefied
Natural Gas Company Limited (RasGas) awarded an EPCI contract on 1st
April 2001 to J. Ray McDermott to build offshore facilities, including a
trunkline, as part of a new, third liquefied natural gas (LNG) train for
In August 2005, subject (in collaboration with McDermott Arabia Company Ltd) was awarded work by
Saudi Aramco to provide fabrication and installation for Marjan, Zuluf,
Safaniya oil field facilities.
At its Jebel Ali yard in Dubai, subject will undertake construction engineering, partial procurement and fabrication of five wellhead jackets (including piles and conductors) totaling over 6,100MT, five drill decks weighing 405MT, and three scrapper decks averaging 575MT each. The work scope also includes offshore installation of 21km of subsea pipelines including one 24' and four 16' flow lines in waters 15-52m deep; tie-in spools; anode sled assemblies and associated cables; risers, and two 5Kv subsea power cables totaling more than 6km in length.
By the end of the first quarter of 2006, J. Ray plans to achieve the first project milestone by completing the installation of the first jacket in the Zuluf field. The final major milestones will be realized in October with the installation of the remaining structures, pipelines and cables. All installation work will be executed using J. Ray's Gulf-based marine vessel, DB27.
McDermott
Caspian Contractors Inc (MCCI)
MCCI is the Caspian operating arm of J. Ray McDermott Middle
East which in turn is a subsidiary of
McDermott International Inc of the
In 2001 MCCI signed two contracts valued at $390 million with
Azerbaijan International Operating Co (AIOC) in Baku for the fabrication of
integrated topside decks for Phase 2 of
the development of the Azeri, Chirag and deepwater portion of the Gunashli (ACG)
field in the Azerbaijan sector of the Caspian Sea and the installation of a
28-inch gas trunkline from the Azeri field to the Sangachal Terminal.
The two contracts will take approximately 41 months to
complete. This follows the first contract
that MCCI won in November, 2001, with a value of $320 million.
MCCI's fabrication scope of work includes fabrication of the
West Azeri (WA) and East Azeri (EA) topside decks, each weighing approximately
16,000 tons. The two decks will support drilling facilities, living quarters,
power generation facilities and other process equipment and facilities.
The pipeline scope of work includes installation of the 187 kilometre, 28-inch gas pipeline from the Central Azeri platform to the Sangachal on-shore terminal facility.
Prefabrication work started in J. Ray's Jebel Ali yard in March 2003.
Fabrication work will be done mainly in
Import Countries
: The
Subject has a
workforce of approximately 250 employees.
FINANCIAL HIGHLIGHTS
As subject is only
a branch office, information regarding financial details should be referred to
the head office address in the
BANKERS
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Standard
Chartered Bank
Jebel Ali Free Zone
PO Box : 999
Tel : (971-4) 8856600
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Citibank
Bur
PO Box : 749
Tel : (971-4) 2522100
Fax : (971-4) 2524942
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Emirates
Bank International Ltd
PO Box : 2923
Tel : (971-4) 2281181
PAYMENT HISTORY
No complaints regarding
subject’s payments have been reported.
Date of transaction August 1998 January 2003 December 2005
Credit amount 500,000 450,000 158,000
Amount overdue 0 0 0
Payment terms 60
days 60 days 60 days
Payment Method Letters
of Credit Letters of Credit Letters of Credit
Paying record No
Complaints No Complaints No Complaints
Currency Pounds
Sterling Euros Pounds
GENERAL COMMENTS
Opinion on the
credit figure of US$ 150,000
Subject is a
leading worldwide marine construction company and is a branch office of the
Panamanian registered company “J. Ray McDermott Middle East”, which in turn is
a subsidiary of the well-known McDermott International Inc of the
Any credit amount
that is to be offered to this company should be written under the name of
“McDermott International Inc” and directed to the companies head office address
in the
Maximum suggested
credit figure: US$ 1,000,000
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)