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MIRA INFORM
REPORT
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Report Date : |
12.04.2011 |
IDENTIFICATION DETAILS
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Name : |
SAUDI ARABIAN OIL COMPANY (SAUDI ARAMCO) |
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Registered Office : |
Saudi Aramco
Compound, |
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Country : |
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Date of Incorporation : |
13.11.1988 |
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Legal Form : |
wholly owned by the government of |
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Line of Business : |
Subject is
engaged in all phases of oil and gas production, refining, transportation and
marketing. |
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 : |
No Complaints |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – December 31, 2010
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Country Name |
Previous Rating (30.09.2010) |
Current Rating (31.12.2010) |
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a2 |
a2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
COMPANY
NAME
SAUDI ARABIAN OIL COMPANY (SAUDI ARAMCO)
company
ADDRESS
Registered & Physical
Address
Location : Saudi Aramco Compound
PO Box : 5000 & 1565
Town : Dhahran 31311
Country : Saudi Arabia
Telephone : (966-3) 8754915 / 8756110 / 8747400 /
8770110 / 8730115
Facsimile : (966-3) 8738490 / 8738190
Email : webmaster@aramco.com
Premises
Subject operates
from a large suite of offices and processing facilities that are owned and
located in the Industrial Area of Dhahran.
Branch Office (s)
Location Description
·
PO Box:
73 Owned
office premises
Jeddah
Tel: (966-2) 6534655 / 6654261
·
PO Box:
319 Owned
office premises
Tel: (966-1) 4562100 / 4641055
·
Industrial
Development Division Owned
office premises
PO Box: 2239
Dhahran 31311
Tel: (966-3) 8572438
Fax: (966-3) 8573138
KEY
PRINCIPALS
Name Position
·
H.E. Ali I. Al Naimi Chairman
·
Khalid A Al Falih President
& Chief Executive Officer
·
H.E. Dr. Abdul Rahman A. Al Tuwaijri Director
·
H.E. Dr. Ibrahim A. Al Assaf Director
·
·
Abdulaziz F. Al Khayyal Director
·
Dr
Khaled S Al Sultan Director
·
Ali I
Al Naimi Director
·
Peter L
Woicke Director
·
James W
Kinnear Director
·
Sir
Mark Moody-Stuart Director
·
Salim S
Al Aydh Director
·
Abdullatif
A. Al Othman Finance
Manager
LEGAL
FORM & OWNERS
Registration Details : Saudi
Arabian Oil Company (Saudi Aramco) was incorporated on 13th November
1988 by the government of
On 14th June 1993 subject was merged with Saudi Arabian Marketing & Refining Co (Samarec) which was responsible for marketing the country’s oil and running most of the Kingdom’s refineries. In a second merger ordered by Royal Decree on 1st July 1993, the subject took control of the net assets of the General Organisation of Petroleum & Minerals (Petromin)
History : 1933
(Casoc), affiliate of Standard Oil
of California (Socal, today's Chevron). Oil prospecting begins on Kingdom's
east coast.
1936 Texas Company (now Texaco) acquires 50 percent
interest in Socal's concession.
1938 Kingdom's first commercial oil field discovered
at Dhahran. Crude is exported by barge to
1939 First
tanker load of petroleum is exported.
1944
Casoc changes its name to Arabian
American Oil Company
(Aramco).
1945 Ras
Tanura Refinery begins operations.
1948 Standard Oil of New Jersey and Socony-Vacuum
Oil (both now Exxon Mobil) join Socal and Texaco as owners of Aramco.
1950 1,700km Trans-Arabian Pipe Line (Tapline) is
completed, linking
1951 Safaniya field, the world's largest offshore
oil field is discovered.
1956 Aramco confirms scale of Ghawar and Safaniya,
world's largest oil field and largest offshore field, respectively.
1961 Liquefied petroleum gas (LPG) - propane and
butane - is first processed at Ras Tanura and shipped to customers.
1966 Tankers begin calling at "
1973
1975 Master
Gas System project is launched.
1980 Saudi Government acquires 100 percent
participation interest in Aramco, purchasing almost all of the company's
assets.
1981 East-West Pipelines, built for Aramco's
natural gas liquids (NGL)and crude oil, link the Eastern Province with Yanbu'
on Red Sea.
1982 Exploration and Petroleum Engineering Center
(EXPEC) opens in Dhahran.
1984 Company
acquires its first four supertankers.
1987 East-West Crude Oil Pipeline expansion is completed,
boosting capacity to 3.2 million barrels per day (bpd).
1988 Saudi Arabian Oil Company, or Saudi Aramco, is
established.
1989 High-quality oil and gas are discovered south
of
1991 Company
plays major role combating the Gulf oil spill.
1992 East-West Crude Oil Pipeline capacity boosted
to 5 million bpd. Saudi Aramco affiliate purchases 35 percent interest in
SsangYong Oil Refining Company (now S-Oil Corporation) of the
1993 Saudi Aramco takes charge of Kingdom's
domestic refining, marketing, distribution and joint-venture refining
interests.
1994 Maximum sustained crude-oil production
capacity is returned to 10 million bpd. Company acquires a 40 percent equity
interest in Petron, largest refiner in the
1995 Company completes program to build 15 very
large crude carriers. Saudi Aramco President and CEO Ali I. Al-Naimi is named
Kingdom's Minister of Petroleum and Mineral Resources.
1996 Saudi Aramco acquires 50 percent of Motor Oil
(
1998 Saudi Aramco, Texaco and Shell establish
Motiva Enterprises LLC, a major refining and marketing joint venture in the
southern and eastern
1999 HRH Crown Prince 'Abd Allah inaugurates the
Shaybah field in the Rub' al-Khali desert, one of the largest projects of its
kind in the world goes on stream.
The Dhahran-Riyadh-Qasim
multi-product pipeline and the Ras Tanura Upgrade project are completed.
The second Saudi Aramco-Mobil
lubricating oil refinery (Luberef II) in Yanbu' commences operations.
2000 Petroleum
Intelligence Weekly ranks the company No.1 in the world for the 11th straight year,
based on the Kingdom's crude oil reserves and production.
Aramco Gulf Operations Limited is
established to assume management of the government's petroleum interest in the
Offshore Neutral Zone between
New
facilities are under construction in the Haradh and Hawiyah gas plant projects
to process gas for delivery to the Master Gas System and on to domestic
markets.
2001 Hawiyah Gas Plant, capable of processing up to
1.6 billion standard cubic feet per day of non-associated gas, comes on stream.
2003 Haradh Gas Plant completed two and a half
months ahead of schedule.
2004 HRH Crown Prince 'Abd Allah ibn 'Abd
Al-'Aziz Al Saud, First Deputy Prime Minister and Head of the National Guard,
inaugurates the 800,000 barrel-per-day Qatif-Abu Sa'fah Producing Plants mega
project. In addition to the crude, the plants provide 370 million standard
cubic feet of associated gas daily.
2005
Saudi Aramco and Sumitomo Chemical Co.,
Ltd. sign a joint
venture
agreement for the development of a large, integrated refining and petrochemical
complex in the Red Sea town of
2006
Saudi Aramco and Sumitomo Chemical broke
ground on PETRORabigh, an integrated refining/petrochemical project. Haradh III
was completed, yielding 300,000 bpd of oil.
2007
Accords were signed for two export refineries --
Jubail (with Total) and in Yanbu' (with ConocoPhillips).
2008
Saudi Aramco begins a program to build a world-class
graduate research university, the King Abdullah University of Science and
Technology (KAUST).
2009
Saudi Aramco celebrates its 75th Anniversary and,
as a gift to the people of
2010
Saudi
Aramco achieves maximum sustained crude-oil production capacity of 12 million
bpd.
AFFILIATED
COMPANIES
·
Aramco
Overseas
Schuttersveld 14
·
Aramco
Services Co
PO Box: 4535
Tel: (1-713) 4324000
·
Aramco
Associated Co
·
Saudi
Refining Inc
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Saudi Petroleum
International Inc
Tel: (1-713) 4324000
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Saudi
Petroleum Overseas Ltd
·
Vela
International Marine Ltd
·
Petron
Corp
OPERATIONS
Activities: Saudi
Aramco is involved in all phases of oil and gas production, refining,
transportation and marketing. Subject’s key facts and figures are as follows:
Oil reserves and production
Recoverable crude oil and condensate reserves: 260.1 billion barrels
Total annual crude oil production: 2.9 billion barrels
Average daily crude oil production: 7.9 million barrels
Gas reserves and production
Gas reserves at year’s end: 275.2 trillion standard cubic feet
Total annual gas production: 3.2 trillion standard cubic feet
Average daily gas production: 8.6 billion standard cubic feet
Natural gas liquids (NGLs)
Total annual NGL production: 410.2 million barrels
Average daily NGL production: 1.1 million barrels
New discoveries
Oil fields: Sirayyan
Gas
fields: Sanaman
Wells completed
New oil wells: 19
New gas wells: 7
Total workovers: 74
Subject operates 87 oil and gas fields and is the discoverer and producer of world's largest oil field: Ghawar Field, Eastern Province, Saudi Arabia - 65 billion barrels of reserves, as well as the discoverer and producer of world's largest offshore oil field: Safaniya Field, Arabian Gulf - 37 billion barrels of reserves.
The company also has the world’s 4th largest gas reserves, 219 trillion cubic feet (tcf) as of year-end 2000, and is ranked tenth in terms of gas production, which stood at 2.1 tcf in 2000.
Oil Operations
Saudi Aramco's oil operations encompass the
Saudi Aramco implemented a PC-Cluster
supercomputer system to run inparallel with its computer intensive
earth-imaging application Pre-Stack Time Migration (PSTM), which was developed
by Saudi Aramco. This advanced seismic processing technology provides better
images of deep hydrocarbon targets and improves the success rate of drilling
activity in support of the gas production program. The PC-Cluster architecture
provides unprecedented cost benefits because it uses off-the-shelf computer
components linked together with off-the-shelf high-speed interconnect switches.
Gas Operations
The Hawiyah Gas Plant, which became fully operational at the
end of 2001, provides an additional 1.4 billion cubic feet per day of sales
gas.
To meet growing domestic demand, the Kingdom has embarked on
a major expansion of its gas industry and the downstream consuming sectors of
the economy, particularly petrochemical production and exports and electricity
and water desalination facilities. Subsequent to the Long Term Kingdom Gas
Strategy developed by the Ministry of Petroleum and Minerals and Saudi Aramco
in 1998, the government invited interested international oil companies (IOCs)
to participate in the development of new gas fields, gas production and
downstream utilization projects. Gas is targeted to be "an engine of
growth" for the Saudi economy. The so-called Natural Gas Initiative has
made substantial progress and has an ambitious schedule ahead to implement some
$25 billion worth of projects over the next five to ten years. Progress is
being made on three Core Ventures :
Core Venture 1 includes ethane and NGL recovery from the
Haradh and Hawiyah Gas Plants, additional new gas development and production,
two petrochemical complexes to utilize ethane and NGL and two large power/water
generation facilities on the east coast of
Core Venture 2 focuses on gas development in the
Core Venture 3 comprises gas exploration and production in
the Shaybah/Kidan area in the south-eastern part of the Kingdom. It will
include downstream facilities, as well. A consortium of Shell, Total, Fina, Elf
and Conoco is working to develop CV3.
During 2004 subject commenced work the Hawiyah Gas Plant
expansion and NGL Recovery programme, composed of a series of expansion
projects at existing gas plants and an upgrade of the existing pipeline network
for the delivery of new NGL liquids. Central to the Hawiyah NGL programme is
the construction of a new grass roots NGL recovery facility near Hawiyah Gas
Plant. The project will increase NGL production by 310,000 bpd.
Refining, Supply
& Distribution
Saudi Aramco's responsibilities expanded greatly on July 1st
1993, when a Royal Decree merged into the company all of Saudi Arabia's state-owned
oil refineries and distribution and marketing operations that were operated by
the Petromin marketing and refining project known as Samarec. Under the same
decree, Saudi Aramco assumed Petromin's 50-percent interests in three domestic
joint-venture refineries. Saudi Aramco's new refining interests, combined with
its Ras Tanura Refinery and its joint-venture and shareholder interests in five
other refineries in the
Subject owns
and operates the world's second largest tanker fleet and has a total refining
capacity of 3.4 million barrels per day
Saudi Aramco Refining
World-class domestic refineries stretching from the Arabian
Gulf to the
Supply and Distribution
A broad network of bulk plants and air-fueling units in the
Kingdom supplies thousands of bulk customers with products ranging from
gasoline and jet fuel to fuel oil and liquefied petroleum gas.
Terminals
Mammoth tank farms and shipping terminals supply crude oil, natural gas liquids
and refined products to customers around the globe. Every year, more than 4,000
tankers call at Ras Tanura and Ju'aymah on the Arabian Gulf, and at Yanbu',
Jeddah and Rabigh on the
OCC is the hub of oil, gas, electricity and refined products
management, optimising hydrocarbon system capacities and inventories to deliver
quality products to the customer at the right time and place.
Electric Power Network
An extensive electrical power generation, transmission and
distribution network supports Saudi Aramco's industrial operations in the
Kingdom and sustains their continual growth.
Recent Discoveries
In 2005, Saudi Aramco booked three oil discoveries and two
gas discoveries.
In June, gas was discovered at Fazran, about 59 miles/95 km
west of Dhahran, and in December, gas was discovered at Midrikah, about 217
miles/350 km west of Dhahran. Of the oil discoveries, the Du'ayban discovery,
made in April, flowed 3,260 bpd of Arabian Super Light crude oil, while the
Halfa discovery, also in April, flowed 6,000 bpd of Arabian Extra Light crude
oil. In November, oil was struck at Muraiqib, with the discovery well flowing
1,079 bpd of Arabian Light.
In addition, an oil discovery was made outside the booked
reserves area at Fadhili, northeast of
Subject has a
workforce of 55,066 employees (of which 48,053 are Saudi nationals)
FINANCIAL
DATA
Subject is owned by
the government of
BANKERS
·
National
Commercial Bank
PO Box: 13
Dammam 31411
Tel: (966-3) 8331188
Fax: (966-3) 8336058
·
Saudi
American Bank
PO Box: 3113
Dammam 31471
Tel: (966-3) 8337171
·
Saudi
British Bank
PO Box: 1618
Dammam 31411
Tel: (966-3) 8331553
PAYMENT
HISTORY
No complaints
regarding subject’s payments have been reported.
Date of transaction March
2004 September 2005 October 2006
Credit amount 1,300,065 118,700 1,705,050
Amount overdue 0 0 0
Payment terms 180
days 180 days 180 days
Payment Method Letters
of Credit Letters
of Credit Letters
of Credit
Paying record No Complaints No Complaints No Complaints
Currency Canadian
Dollars Canadian Dollars Canadian Dollars
GENERAL
COMMENTS
Saudi Arabian Oil
Company is the largest oil producer in the world supplying 11% of the world’s
oil demand. The company controls proven oil reserves of about 260.1 billion
barrels (more than 25% of the world’s total).
Saudi Aramco owns a fleet of oil tankers and invests in refineries and distribution networks in other countries.
Subject is wholly owned by the government of
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.22 |
|
|
1 |
Rs.72.26 |
|
Euro |
1 |
Rs.63.90 |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
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 |
|
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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.