|
Report Date : |
31.08.2013 |
IDENTIFICATION DETAILS
|
Name : |
SAUDI ARABIAN OIL COMPANY (SAUDI ARAMCO) |
|
|
|
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Registered Office : |
Saudi Aramco Compound Al Dhahran High Street PO Box 5000 & 1565 Dhahran 31311 |
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Country : |
Saudi Arabia |
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Date of Incorporation : |
13.11.1988 |
|
|
|
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Legal Form : |
Government Corporation |
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|
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Line of Business : |
Oil and gas company |
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No. of Employees : |
56,066 |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Good |
|
Payment Behaviour : |
Regular |
|
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, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
Saudi Arabia |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
SAUDI ARABIA - ECONOMIC OVERVIEW
Saudi Arabia has an oil-based economy with strong government
controls over major economic activities. It possesses about 17% of the world's proven
petroleum reserves, ranks as the largest exporter of petroleum, and plays a
leading role in OPEC. The petroleum sector accounts for roughly 80% of budget
revenues, 45% of GDP, and 90% of export earnings. Saudi Arabia is encouraging
the growth of the private sector in order to diversify its economy and to
employ more Saudi nationals. Diversification efforts are focusing on power
generation, telecommunications, natural gas exploration, and petrochemical
sectors. Over 5 million foreign workers play an important role in the Saudi
economy, particularly in the oil and service sectors, while Riyadh is
struggling to reduce unemployment among its own nationals. Saudi officials are
particularly focused on employing its large youth population, which generally lacks
the education and technical skills the private sector needs. Riyadh has
substantially boosted spending on job training and education, most recently
with the opening of the King Abdallah University of Science and Technology -
Saudi Arabia's first co-educational university. As part of its effort to
attract foreign investment, Saudi Arabia acceded to the WTO in 2005. The
government has begun establishing six "economic cities" in different
regions of the country to promote foreign investment and plans to spend $373
billion between 2010 and 2014 on social development and infrastructure projects
to advance Saudi Arabia''s economic development.
Source
: CIA
Company Name : SAUDI ARABIAN OIL COMPANY (SAUDI ARAMCO)
Country of Origin : Saudi Arabia
Legal Form : Government Corporation
Registration Date : 13th November 1988
Total Workforce : 56,066
Activities : Oil and gas company
Financial Condition : Undetermined
Payments : Nothing detrimental uncovered
SAUDI ARABIAN OIL COMPANY (SAUDI ARAMCO)
Location : Saudi Aramco
Compound
Street : Al Dhahran
High Street
PO Box : 5000 &
1565
Town : Dhahran
31311
Country : Saudi Arabia
Telephone : (966-3) 8754915
/ 8756110 / 8747400 / 8770110 / 8730115 / 8720110
Facsimile : (966-3)
8738490 / 8738190
Email : webmaster@aramco.com
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
Riyadh
Tel:
(966-1) 4562100 / 4641055
· Saeed Tower Owned
office premises
Dammam Al Khobar
Highway
Al Khobar 31952
Tel: (966-3)
8746272
· Industrial
Development Division Owned
office premises
PO Box: 2239
Dhahran 31311
Tel: (966-3) 8572438
Fax: (966-3) 8573138
Name Position
· H.E. Ali I. Al
Naimi Chairman
· Khalid A Al Falih President
& Chief Executive Officer
· HE Dr Abdul Rahman
A. Al Tuwaijri Director
· HE Dr Ibrahim A.
Al Assaf Director
· HE Dr Mohamed I.
Al Suwaiyel 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
· Mohammad A Al Ali Director
· Khalid G Al Buainain Director
· David B Kultgen Director
· Amin H Nasser Director
· Abdulrahman F Al Wuhaib Director
· Abdullatif A Al
Othman Finance
Manager
Registration Details : Saudi Arabian Oil Company (Saudi Aramco)
was incorporated on 13th November 1988 bythe government of Saudi
Arabia as a national oil company to assume the responsibilities of the Arabian
American Oil Company (Aramco). Aramco was a US Company owned by the state of
Saudi Arabia, and run in co-operation with four US Oil companies – Chevron
Corp, Exxon Corp, Mobil Corp, and Texaco Inc.
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 Saudi Arabia grants oil concession to
California Arabian
Standard Oil Company (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 Bahrain.
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 Eastern Province oil fields to Lebanon and the
Mediterranean.
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 "Sea
Island," new offshore crude oil loading platform off Ras Tanura.
1973 Saudi Arabia's Government acquires a 25
percent participation interest in Aramco.
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 Riyadh, the first find outside the company's original operating area. Saudi
Aramco and Texaco launch the Star Enterprise refining and marketing joint
venture.
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 Republic of
Korea.
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 Philippines.
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
(Hellas) Corinth Refineries and Avinoil. Company also assumes controlling
interest in two Jeddah-based lubricants companies, now known as Saudi Aramco
Lubricating Oil Refining Company (Luberef) and Saudi Arabian Lubricating Oil Company
(Petrolube).
1998 Saudi Aramco, Texaco and Shell establish
Motiva Enterprises LLC, a major refining and marketing joint venture in the
southern and eastern United States.
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 Saudi Arabia and Kuwait.
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 Rabigh, on Saudi Arabia's west coast.
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.
Accords were signed for two export refineries -- Jubail (with Total) and
in Yanbu' (with
ConocoPhillips).
2007
Saudi Aramco begins a
program to build a world-class graduate research university, the
King Abdullah
University of Science and Technology (KAUST).
2008
Saudi Aramco celebrates
its 75th Anniversary and, as a gift to the people of Saudi Arabia,
launches a
project to build the King Abdulaziz Center for Knowledge and Culture (popularly
known as Ithra) in Dhahran.
2009
Saudi Aramco achieves
maximum sustained crude-oil production capacity of 12 million bpd.
· Aramco Overseas Co
BV
Schuttersveld 14
Leiden
Netherlands
· Aramco Services Co
PO Box: 4535
Houston
Texas 77210
United States of America
Tel: (1-713) 4324000
· Aramco Associated
Co
16875 J.F.K.
Boulevard
Houston
Texas
United States of America
· Saudi Refining Inc
W. Loop Street
Houston
Texas
United States of America
· Saudi Petroleum
International Inc
Houston
Texas 77210
United States of
America
Tel: (1-713)
4324000
· Saudi Petroleum
Overseas Ltd
United Kingdom
· Vela International
Marine Ltd
Liberia
· Petron Corp
Philippines
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: 259.7 billion barrels
Total annual crude oil
production: 2.9 billion barrels
Average daily crude oil
production: 9.1 million barrels
Gas reserves and production
Gas reserves at year’s end:
282.6 trillion standard cubic feet
Total annual gas
production: 3.4 trillion standard cubic feet
Average daily gas
production: 9.4 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: Namlan, AsSayd,
Qamran, Arsan
Gas fields: Jalamid
Wells completed
New oil wells: 27
New gas wells: 17
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.
Saudi Aramco's oil operations encompass the
Kingdom of Saudi Arabia, including territorial waters in the Arabian Gulf and
the Red Sea. Totalling more than 1.5 million square kilometres. Most production
comes from fields in the coastal plains of the Eastern Province in an area
extending 300 kilometres north and south of Dhahran.
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.
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 Saudi Arabia. The
IOC consortium selected to develop CV1 includes ExxonMobil, Royal Dutch/Shell,
BP and Philips.
Core Venture 2 focuses on gas development in
the Red Sea and along the west coast. It includes exploration, development,
production and downstream facilities, i.e., petrochemical and power/water
plants. ExxonMobil, Occidental and Marathon are in a consortium to develop CV2.
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.
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
United States and the Far East, place the company in the top rank of world
refiners.
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 Red Sea
maintain a reliable supply of more than a million barrels per day of products
to meet the needs of domestic and international markets.
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 Red Sea.
Operations
Coordination Center
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.
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 Riyadh. This
discovery established a significant extension of the Fadhili reservoir in the
field of the same name, and could result in the additional booking of
approximately 700 million barrels of original oil in place, of which 45
percent, or 300 million barrels, is recoverable.
Subject has a workforce of 56,066 employees (of which 48,647 are Saudi
nationals)
Subject is owned by the government of Saudi Arabia and as such no
financial information is released.
·
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
No complaints regarding subject’s payments have been reported.
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
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 Saudi Arabia and the
operating history is clear with nothing detrimental uncovered regarding the
manner in which payment obligations are met. As such we have no reason to doubt
the company for respecting any of its financial trade commitments.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.57 |
|
|
1 |
Rs.103.34 |
|
Euro |
1 |
Rs.88.16 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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%)
This report is issued at your request without any risk
and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its
officials.