MIRA INFORM REPORT

 

 

Report Date :           

09.06.2011

 

IDENTIFICATION DETAILS

 

Name :

MB PETROLEUM SERVICES LLC

 

 

Registered Office :

MB Petroleum Building, 585 Way No. 46, Al Ghubra, P O Box 695, Seeb 111

 

 

Country :

Oman 

 

 

Financials (as on) :

31.12.2010

 

 

Year of Establishment :

1982

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Oilfield services and supplies

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

US$ 2,500,000

Status :

Satisfactory 

Payment Behaviour :

No Complaints

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 – March 31st, 2011

 

Country Name

Previous Rating

                   (31.12.2010)                  

Current Rating

(31.03.2011)

Oman

a2

a2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 Bottom of Form

 

SUMMARY

 

Company Name                                     : MB PETROLEUM SERVICES LLC

Country of Origin                                    : Oman

Legal Form                                            : Limited Liability Company – LLC

Registration Date                                   : 1982

Issued Capital                                        : RO 3,042,000

Paid up Capital                                      : RO 3,042,000

Total Workforce                                     : 1,500

Activities                                               : Oilfield services and supplies.

Financial Condition                                 : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

Recommended Credit Limit                     : US$ 2,500,000

 

 

COMPANY NAME

 

MB PETROLEUM SERVICES LLC

 

 

company ADDRESS

 

Registered & Physical Address

Building             : MB Petroleum Building

Street               : 585 Way No. 46

Area                 : Al Ghubra

PO Box             : 695

Town                 : Seeb 111

Country             : Sultanate of Oman

Telephone         : (968) 24491606 / 24580331

Facsimile          : (968) 24491530

Email                : mboman@mbpetroleum.co.om / martin@mbpetroleum.co.om

 

Premises

Subject operates from a large suite of offices that are owned and located in the Suburban Business Area of Seeb.

 

 

KEY PRINCIPALS

 

     Name                                                                                              Position

 

·       Mohamed Al Barwani                                                             Chairman

 

·       Oswa Al Barwani                                                                               Managing Director

 

·       Hafidh Al Busaidy                                                                              General Manager

 

·       George Schneider                                                                             Drilling Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 1982

 

Legal Form                  : Limited Liability Company – LLC

 

Issued Capital              : RO 3,042,000

 

Paid up Capital            : RO 3,042,000

 

Name of Shareholder (s)

 

·       Mohamed Al Barwani

 

·       Oswa Al Barwani

 

·       MB Holding Company LLC

 

 

AFFILIATED COMPANIES

 

·       Crest Oil & Gas LLC

·       MB Drilling Overseas Limited

·       Erdol Erdgas Workover GmbH & Co

·       MB Petroleum Deutschland GmbH

·       Ferdinand, Koller & Sohn

·       Koller Verwaltungs und Beteiliegungs GmbH

·       Koller Maschinen und Anlagenbau GmbH

·       Koller Workover & Drilling GmbH

·       Koller Workover International GmbH

·       Rellok Cutting Solutions GmbH

·       MB Petroleum (Asia Pacific) Ltd

·       Mitco Oil Industrial Trading Ltd

·       MB Property Ltd

·       MB 2001 Ltd

·       MB Metalworks Ltd

·       MBPS Malaysia Sdn Bhd

·       MB Petroleum Services Company Ltd

·       MBPS Finance Company

·       MB Petroleum BV Netherlands

·       MB Drilling Romania Srl

·       MB Century Holding Pte Ltd

·       MB Century Drilling Pty Ltd

·       Century Resources Services Ltd

·       Century Drilling & Energy Services (NZ) Ltd

·       PT Century Dinamik Drilling

·       PT Ogspiras Bina Drilling

·       MB Century (Thailand) Ltd

·       MB Century (Brunei) Sdn Bhd

·       Century Energy Services Pty Ltd

·       Century Resources International Pty Ltd

 

 

OPERATIONS

 

Activities: The core business of MB Petroleum is in drilling and workover services; well testing; drilling fluids

     engineering; mud logging; wireline services; coiled tubing, nitrogen & pumping services; and

     completions & cementing services.

 

Subject is also engaged in the supply of oilfield equipment and spare parts.

 

Clients include Saudi Aramco, Petroleum Development Oman (PDO), MEDCO (Oman), Qatar Petroleum, Shell, SASOL (Mozambique), ONGC(India), Veba, Daleel, Canadian Nexen Yemen, Occidental, Total, Wintershall, Gas du France, AI-Furat Petroleum (Syria)

 

Import Countries: United Kingdom, Germany, Netherlands, Canada, and the United States of America.

 

Operating Trend: Steady

 

Subject has a workforce of approximately 1,500 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: United States Dollars (US$)

 

Consolidated Balance Sheet                                                               31/12/10            31/12/09

 

Consolidated Statement of Income

 

 

Local sources consider subject’s financial condition to be Fair.

 

 

BANKERS

 

·       National Bank of Oman Limited (SAOG)

Muttrah Business District

PO Box: 751, Ruwi 112

Muscat

Tel: (968) 24708894 / 24708630 / 24708684

Fax: (968) 24707781 / 24703972

 

·       Bank Muscat SAOG

Ruwi Main Branch

     PO Box: 6326

     Muscat

     Tel: (968) 24561399 / 24708543

     Fax: (968) 24561036

 

·       Commercial Bank of Oman SAOG

Muttrah Business District

PO Box: 1696, Ruwi 112

Muscat

Tel: (968) 24793225 / 24793226 / 24793228

Fax: (968) 24793229

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

MB Petroleum Services (MBPS) launched its maiden high yield bond issue (Senior Notes Offering) under 144a/Reg S format of US$ 320 million which was closed on 15th November 2010. With this maiden issue, MB Group has entered into the global capital markets. The notes are listed on Luxembourg Stock Exchange’s Euro MTF Market. The notes were issued through MBPS Finance Company (Issuer) a wholly owned subsidiary of MBPS, which are guaranteed on a senior basis by its parent, MB Holding Co. LLC (“MB Holding”), MBPS and certain of its subsidiaries. The Notes has been rated B+ by S&P and BB- by Fitch. Barclays Capital, HSBC and Standard Chartered Bank were the Joint Bookrunners and Joint Lead Managers to the issue. Investors from US, Europe, Middle East and Asia participated in the issues.


The net proceeds of the offering have been utilized to repay existing indebtedness of MBPS. The broader objective of this bond is to establish MB Group in the capital markets, diversify its sources of funding, improve short term liquidity of MBPS and improve corporate governance including reporting transparency. This will position MB Group itself to set a track record for long term expansion and growth in Oman and internationally

 

In December 2010, MB Petroleum Services LLC and Al Ghalib Co Ltd signed a MOU to form a joint venture in Iraq

MB Petroleum Services LLC (MBPS) and Al Ghalib Co Ltd (Al Ghalib) announced that they have signed memorandum of understanding (MoU), establishing a joint venture (JV) in Iraq for the provision of Petroleum Services. JV shareholding will be 60% by MBPS and 40% by Al Ghalib.


The JV will be formed to pursue future opportunities in Iraq covering the full range of drilling, workover and production services. This includes Drilling, Workover, Well Testing, Wireline/Slick line/Perforation, Data Acquisition, Cementing, Coiled Tubing, well stimulation, production optimization, High Pressure Pumping, Frac, Mud Logging, Completion, Drilling Fluids Engineering, Drilling Fluids Chemicals and Integrated services.


The JV will enable MBPS and Al Ghalib to establish a scalable and profitable position in the growing Iraqi Oil and Gas market by building a lead position in the world third largest oil reserves base. The deal will also enhance both companies’ growth prospects.

 

During the course of this investigation nothing detrimental was uncovered regarding subject’s operating history or the manner in which payments are fulfilled. As such the company is considered to be a fair trade risk.

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.44.61

UK Pound

1

Rs.73.28

Euro

1

Rs.65.47

 

 

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

----

NB

New Business

----

 

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%)

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.