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MIRA
INFORM REPORT
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Report Date : |
12.01.2008 |
IDENTIFICATION
DETAILS
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Name : |
THE PETROLEUM OIL AND GAS CORPORATION OF
SOUTH AFRICA (PTY) LTD |
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Formerly Known As : |
THE PETROLEUM OIL AND GAS CORPORATION OF SA (PTY) LTD |
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Registered Office : |
151 Frans Conradie Drive PAROW, Western Cape |
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Country : |
South Africa |
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Date of Incorporation : |
19.06.1970 |
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Com. Reg. No.: |
1970/008130/07 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
The exploration
and production of oil and natural gas off the coast of South Africa. |
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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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
COMPANY NAME
THE PETROLEUM OIL AND GAS CORPORATION OF
SOUTH AFRICA (PTY) LTD
Formerly THE PETROLEUM OIL
AND GAS CORPORATION OF SA (PTY) LTD, the name having been changed on 30 April
2002; formerly MOSSGAS (PTY) LTD, the name having been changed on 22 January
2002; formerly MOSSREF (PTY) LTD, the name having been changed on 29 May 1989;
formerly SOEKOR (PTY) LTD, the name having been changed on 26 August 1986.
TRADING NAME
PETRO SA
PHYSICAL ADDRESS
151 Frans Conradie Drive
PAROW
Western Cape
POSTAL ADDRESS
Private Bag X5
PAROW
7500
TELEPHONE NUMBER: 021 929 3000
FAX NUMBER: 021 929
3328
The subject moved from Portswood Square, Dock Road, V & A
Waterfront, Cape Town.
SHAREHOLDERS
100% CEF (PTY) LTD (THE CENTRAL
ENERGY FUND) (a Quasi- Government department)
It was stated that the subject
owns, operates and manages the South African government’s commercial assets in
the petroleum industry. The company
operates as a commercial non-listed entity under South African law.
Respondents stated that there
were 3 sister companies, namely: SOEKOR
E & P (PTY) LTD, SFF ASSOCIATION and MOSSGAS (PTY) LTD which merged
operations to form the subject.
ASSOCIATE COMPANIES
PETRO SA BRASS NIGERIA
PETRO SA EUROPE BV
PETRO SA FYN FUEL INTERNATIONAL (PTY) LTD
PETRO SA NIGERIA
PETRO SA EQUATORIAL GUINEA LTD
PETRO SA IRIS (PTY) LTD
PETRO SA NAMIBIA (PTY) LTD
PETRO SA SUDAN LTD
PETRO SA GRYPHON MARIN PERMIT (PTY) LTD
Plus other companies within the PETRO SA Group.
DIRECTORS
DR. P S MOLEFE (Chairman)
S MKHIZE (President
an Chief Executive Officer)
N G NIKA (Executive)
A R NKUHLU
PROF B FIGAJI
MS N DUKUZA-LINDA
R J ANGEL
M KAJEE
M B DANANE
D R ZIHLANGU
C W N MOLOPE
MS P S V NGABA (Company Secretary)
The subject has a unitary board appointed by
the Minister of Minerals and Energy.
The board meets at least once a quarter. It adopts a decentralised approach to the day to day running of
the corporation, whilst ensuring the strategic direction of the organisation.
BANKERS
ABSA BANK, Cape Town and STANDARD BANK, Cape Town, account number
070839352. The subject is reported to
have cash management schemes at the banks.
DATE REGISTERED
19 June 1970
Registration Certificate Number 1970/008130/07.
Petro SA was formed in January 2002 from the merger of 3
previous entities, Mossgas (Pty) Ltd, Soekor E & P (Pty) Ltd and parts of
the Strategic Fuel Fund Association.
The background to this event, as well as post 2002 milestone
achievements are sketched in the following chronology of the search for gas and
oil in South Africa.
1965 – First land search commenced near Beaufort West in the Western
Cape province, soon after the SA Government established Soekor (South African Oil
Exploration Corporation) for this purpose.
Although small accumulations of oil were found, these were
non-commercial.
1969 – First offshore well drilled by the Superior
Group. Natural gas deposits discovered
in the continental shelf complex off the southern Cape coast.
1970 – Soekor commences offshore drilling in a joint venture with Rand Mines and US Natural Resources.
1980 – Discovery of the FA gas field. KFA, together with some smaller satellite fields, is situated 85 kilometres south of Mossel Bay. 48 boreholes have been drilled by Soekor and other parties. 25 of these encounter gas in varying quantities and seven-encounter oil.
1983 – Discovery of the EM field, which together with the FA field, provides the basis for the establishment of the GTL project in Mossel Bay.
1988 – Discovery of the first of South Africa’s current oil producing fields, Oryx, which is 100% owned by Petro SA.
1989 – drilling of EC – E, the first discovery well for the Sable oil field, located 95 km offshore and 17 km west of Oribi. Petro SA has a 60% working interest in Sable.
1990 – Discovery of Oribi oilfield, 140 km west of Mossel Bay, which is 80% owned by Petro SA. The first oil produced is from the E-AG 1 and E – AR 1 boreholes during extended well tests. The yield from these wells is sold on the local market.
1998 – Publication of the governments’ White Paper on the Energy Policy of the Republic of SA. This makes provision for the separation of the commercial, strategic and regulatory functions of the Central Energy Fund group of companies through which the State owned and operated its petroleum interests.
2002 – The registration of The Petroleum Oil and Gas Corporation of SA (Pty) Ltd.
2003 – Petro SA, as operator, brings the Sable oil field into production. Sable is situated 150 km south west of Mossel Bay and consists of the E-BD and E-CE reservoirs. It is owned 60% by the subject.
A new Low Aromatic Production plant commences production at the GTL plant.
MAJOR OPERATION
The core business of
Petro SA is:
The exploration and
production of oil and natural gas off the coast of South Africa.
The participation in
and acquisition of local, as well as international upstream petroleum ventures.
The production of synthetic
fuels produced from offshore gas at the world’s largest commercial GTL plant.
The marketing and
trading of oil and petrochemicals and
The storage of crude
oil on behalf of the Strategic Fuel Fund.
It was stated that Petro SA plans to
diversify into associated petroleum industry activities, which may include
pipeline transmission services, GTL technology development and wholesale and
retail marketing.
MAJOR SUPPLIERS
PROTEA INDUSTRIAL CHEMICALS Johannesburg
CHEMPRO Cape Town
ESKOM
AFROX
CHEVRON
ENGEN
MAJOR CUSTOMERS OR BUSINESS
SECTORS:
Oil industry
AREA OF DISTRIBUTION AND SELLING
South Africa
EXPORTS
Europe, North and South America and Far East.
TOTAL EMPLOYEES
1 580 employees.
OTHER PREMISES
The subject is reported to have a manufacturing plant in Mossel Bay and 2 tank farms in Milnerton and Saldanha Bay, where oil is stored.
OWNED OR LEASED
The head office premises are reported to be owned by the subject as well as the Mossel Bay premises. The Saldanha and Milnerton premises are Government owned.
AUTHORISED SHARE CAPITAL
R5 000 divided into 5 000 ordinary R1 shares.
ISSUED SHARE CAPITAL
R1 914
For full financial information please see Balance Sheet and Income Statement attached.
AUDITORS
THE AUDITOR GENERAL
YEAR END
MARCH
INSURANCE BROKERS
ALEXANDER FORBES
TRADE REFERENCES - JUNE 2006
PERIOD HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
CREDIT CREDIT PATTERN
1.Old acc R150
000 R40 000 30 days 30 days Good
c/l sporadic purchases
2 20 yrs R970 000 R300 000 30 days 30 days Very Good
c/l -R500 000
3.Old acc large amounts 30 days 30 days Very Good
TRADE REFERENCES – JANUARY 2007
PERIOD HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
CREDIT CREDIT PATTERN
1. Old acc declined declined 30 days 30 days Very good
2Old acc declined R500 000 30 days 30 days Very good
3.+5 yrs declined declined 30 days 30 days Very good
CURRENT TRADE REFERENCES
PERIOD HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
CREDIT CREDIT PATTERN
1. Old acc declined declined 30 days 30 days Very good
2.2005 open R600 000 30 days 30 days Very good
3.10 yrs+ declined R400 000 30 days 30 days Very good
COMMENTS
This is an established and very well connected company meeting its
commitments timeously. The subject is
considered equal to its normal business engagements.
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. |
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%)