MIRA INFORM REPORT

Report Date :

05.04.2013

IDENTIFICATION DETAILS

Name :	BP PAKISTAN EXPLORATION & PRODUCTION INC.

Registered Office :	501, West Lake Park Blvd, Houston TX 77079 2604

Country :	Pakistan

Financials (as on) :	31.12.2008

Year of Establishments:	1977

Com. Reg. No.:	0005844

Legal Form :	With Limited Liability

Line of Business :	Subject is engaged in Oil and Gas Exploration and Production

No. of Employees :	400-500

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

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 – June 30^th, 2012

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Pakistan

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

pakistan - ECONOMIC OVERVIEW

Decades of internal political disputes and low levels of foreign investment have led to slow growth and underdevelopment in Pakistan. Agriculture accounts for more than one-fifth of output and two-fifths of employment. Textiles account for most of Pakistan's export earnings, and Pakistan's failure to expand a viable export base for other manufactures has left the country vulnerable to shifts in world demand. Official unemployment is 6%, but this fails to capture the true picture, because much of the economy is informal and underemployment remains high. Over the past few years, low growth and high inflation, led by a spurt in food prices, have increased the amount of poverty - the UN Human Development Report estimated poverty in 2011 at almost 50% of the population. Inflation has worsened the situation, climbing from 7.7% in 2007 to more than 13% for 2011, before declining to 9.3% at year-end. As a result of political and economic instability, the Pakistani rupee has depreciated more than 40% since 2007. The government agreed to an International Monetary Fund Standby Arrangement in November 2008 in response to a balance of payments crisis. Although the economy has stabilized since the crisis, it has failed to recover. Foreign investment has not returned, due to investor concerns related to governance, energy, security, and a slow-down in the global economy. Remittances from overseas workers, averaging about $1 billion a month since March 2011, remain a bright spot for Pakistan. However, after a small current account surplus in fiscal year 2011 (July 2010/June 2011), Pakistan's current account turned to deficit in the second half of 2011, spurred by higher prices for imported oil and lower prices for exported cotton. Pakistan remains stuck in a low-income, low-growth trap, with growth averaging 2.9% per year from 2008 to 2011. Pakistan must address long standing issues related to government revenues and energy production in order to spur the amount of economic growth that will be necessary to employ its growing population. Other long term challenges include expanding investment in education and healthcare, and reducing dependence on foreign donors.

Source : CIA

Business Name

BP PAKISTAN EXPLORATION & PRODUCTION INC.

Full Address

Branch Office

3^rd Floor, Bahria Complex 24 M.T. Khan Road, Karachi, Pakistan

Tel #	92 (21) 35610640, 35611194
Fax #	92 (21) 35610634

Short Description Of Business

a.	Nature of Business	Engaged in Oil and Gas Exploration and Production in Pakistan
b.	Year Established	1977
c.	Registration #	0005844

Other Branches

(Pakistan)

House No. 8, Street No. 1,

Sector F-6/3, Islamabad,

Pakistan

Registered Office

501, West Lake Park Blvd,

Houston TX 77079 2604

Auditors

A.F. Ferguson & Co.

(Chartered Accountants)

State Life Building No. 1-C, I.I. Chundrigar Road, Karachi, Pakistan

Legal Status

BP PAKISTAN EXPLORATION & PRODUCTION INC was incorporated with limited liability in Houston, U.S.A.

Details of Management

Names

Designation

Mr. Tariq Khamisani

Mrs. Debra Ann Dowling

Mrs. Debra Ann Plumb

Mr. Roshan B. Mehri

President

Chief Executive Officer

Director

Chief Financial Officer

Shareholders

Names	Percentage of Shareholding (%)
Union Texas International Corporation	100

Associated Companies

(1) BP Exploration Group, Worldwide.

Number of Employees

400 - 500

Operational Overview

BP Pakistan Exploration & Production Inc, a Company incorporated in the United States of America with limited liability owns working interest in the following concessions which are being handled by its Pakistan branch:

· Badin Area Petroleum Concession 1977 (Badin I)

· Badin Area Petroleum Concession 1992 (Badin II)

· Badin Area Petroleum Concession 1995 (Badin II Revised)

· Badin Area Petroleum Concession 1998 (Badin III)

· Mehran Block Petroleum Concession 2000

Annual Sales Volume

Years

In Pak Rupees

2007

2008

20,356,551,912/-

29,234,691,413/-

Trade Suppliers

(Foreign)

Various International belongs to U.S.A., European Countries, Japan, Korea & Taiwan

Capacity & Production

Considering the nature of the Company’s business, it is impracticable to provide the information regarding capacity.

Customers

(1) Sui Northern Gas Company Limited, Pakistan.

(2) Sui Southern Gas Company Limited, Pakistan.

(3) Pakistan State Oil Company, Pakistan.

(4) Mari Gas Company Limited, Pakistan.

Bankers

(1) Faysal Bank Limited, Pakistan.

(2) MCB Bank Limited, Pakistan.

(3) Standard Chartered Bank, Pakistan.

(4) Habib Metropolitan Bank Limited, Pakistan.

(5) The Royal Bank of Scotland, Pakistan.

(6) Habib Bank Limited, Pakistan.

Company’s Contribution In Oil & Gas Exploration In Pakistan

In Pakistan, BP focuses primarily on exploration and production through BP Pakistan Exploration and Production, Inc. We take care of the whole process, from the first assessment of the site to the first production of oil and gas. All our operations are based in southern Sindh, 100 km to the east of Karachi. We work in an area that spans five districts in Sindh province. Our main offices are located in Islamabad and Karachi. We also have a field office in the Badin District. During our time here we’ve drilled 22% of total exploratory wells in Pakistan and made 43% of all oil discoveries in the country. Despite the fact that oil and gas has been produced from the Badin Concessions for over two decades, this asset is still very active and able to produce good results. As a consequence, BP produces 15% of Pakistan's oil and 6% of its gas. Seeking further avenues of expansion in Pakistan, BP has acquired significant off-shore acreage for petroleum exploration, situated 250 km south of Karachi in ultra deep waters. This is the largest off-shore acreage given to any single exploration and production company in Pakistan so far. Outside exploration and production, BP has also grown a vibrant automotive and industrial lubricants business. Our lubricants are sold under the “Castrol brand”.

Memberships

All Pakistan Petroleum Exploration and Production Companies Association. (PPEPCA)

Foreign Exchange Rates

Currency	Unit	Pakistani Rupee
US Dollar	1	Rs. 99.00
UK Pound	1	Rs. 149.00
Euro	1	Rs. 128.75

Comments

Subject Company is well known and directors are resourceful and experienced businessmen. Payments to creditors etc. are reported as normal. Company can be considered for normal business dealings at usual trade terms and conditions.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.65
UK Pound	1	Rs.82.41
Euro	1	Rs.70.08

INFORMATION DETAILS

Report Prepared by :

MNL

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%)

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