MIRA INFORM REPORT

 

 

Report Date :

16.02.2013

 

IDENTIFICATION DETAILS

 

Name :

OCCIDENTAL OF OMAN INC

 

 

Registered Office :

Building No. 182, 2nd Floor, Street No. 72, Way No. 4457, Azaiba Area, Muscat

 

 

Country :

Oman

 

 

Date of Incorporation :

1982

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Engaged in the exploration and production of oil and gas

 

 

No. of Employees :

160

 

 

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

 

Status :

Branch of a Foreign Registered Corporation

 

 

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 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Oman

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

oman - ECONOMIC OVERVIEW

 

Oman is a middle-income economy that is heavily dependent on dwindling oil resources. Because of declining reserves and a rapidly growing labor force, Muscat has actively pursued a development plan that focuses on diversification, industrialization, and privatization, with the objective of reducing the oil sector's contribution to GDP to 9% by 2020 and creating more jobs to employ the rising numbers of Omanis entering the workforce. Tourism and gas-based industries are key components of the government's diversification strategy. By using enhanced oil recovery techniques, Oman succeeded in increasing oil production, giving the country more time to diversify, and the increase in global oil prices through 2011 provided the government greater financial resources to invest in non-oil sectors.

 

Source : CIA

 

 


SUMMARY

 

Company Name                                     : OCCIDENTAL OF OMAN INC

Country of Origin                                    : United States of America

Legal Form                                            : Branch of a Foreign Registered Corporation

Registration Date                                   : 1982

Total Workforce                                     : 160

Activities                                               : Exploration and production of oil and gas

Financial Condition                                 : Undetermined

Payments                                             : Nothing detrimental uncovered

 

 

 


COMPANY NAME

 

OCCIDENTAL OF OMAN INC

 

 

ADDRESS

 

Registered & Physical Address

 

Building             : Building No. 182, 2nd Floor

Street               : Street No. 72, Way No. 4457

Area                 : Azaiba Area

 

PO Box             : 717, Azaiba 130

 

Town                 : Muscat

Country             : Oman

 

Telephone         : (968) 24524000 / 24524108

Facsimile          : (968) 24524001 / 24524052

 

Premises

 

Subject operates from a large suite of offices and a factory that are owned and located in the Industrial Area of Muscat.

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       James Eastlack                                                                                President

 

·       Bryan Humphries                                                                              Operations Manager

 

·       Isam Al Zadjali                                                                                  Business Development Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 1982

 

Legal Form                  : Subject is the Omani registered branch of Occidental Petroleum Corporation, a

  Limited Liability Company incorporated in the United States of America.

 

  Occidental of Oman Inc in Oman, operates as a Branch of a Foreign Registered

  Corporation with its registered office located at the following address :

 

  Occidental Petroleum Corporation

  10889 Wilshire Boulevard

  Los Angeles

  California 90024-4201

  United States of America

  Tel: (1-310) 2088800

 

  A Branch of a Foreign Registered Corporation is not a legal entity in

  its own right. Responsibility for payments lays in the hands of the

  company where it is originally registered.

 

  Under these circumstances, we strongly advise that any

  international trade credit should only be written under the name of

  the main company where the subject holds its registered office, in

  this case the United States of America.

 

 

OPERATIONS

 

Activities: Engaged in the exploration and production of oil and gas. Subject is the second biggest oil producer in

     Oman.

 

In 1983, Occidental discovered the 300-million barrel Safah field in the Suneinah Concession (Block 9) in Oman located in the north-western part of the country along the border with the United Arab Emirates. The success at Safah was followed by the discovery of eight smaller oil fields. Occidental has produced more than 160 million gross barrels from 190 producing wells, most from the Safah Field.

 

Occidental currently holds a 65 percent interest in Blocks 9 and 27 and is the operator under a production sharing contract. The Japanese company, Mitsui, holds the remaining 35 percent.

 

Occidental is continuing to add new reserves in Block 9 through the use of 3-D seismic imaging and gas reinjection and water flooding technology. In developing these fields, Occidental has utilized multilateral horizontal wells to maximize production and recovery rates. Horizontal wells account for more than 60 percent of Occidental’s production in Oman. One 5,000-foot horizontal section was the longest ever drilled in the Middle East. Occidental also operates the adjacent Block 27 where a number of oil and gas prospects have been identified.

 

Occidental has added 23 million BOE of proven reserves through a project that is expected to deliver up to 150 million cubic feet per day of previously stranded natural gas from its Block 9 operations to the Government of Oman to help meet the region’s growing demand for natural gas

 

         In July 2005 Occidental of Oman began commercial production from Oman's onshore block

         27, initially focusing on the Khamilah field with estimated reserves of 3.04 million barrels of

         oil. The development plan calls for drilling five new producer wells in addition to the existing

         two. Subject holds a 65 percent interest in block 27 and Mitsui E&P Middle East holds the

         rest. It adjoins Occidental's block 9 concession, which now yields around 64,000 barrels per

         day of oil and 120 million standard cubic feet of gas per day.

 

In September 2005, Occidental signed a production sharing agreement with Oman for the

development of the Mukhaizna oilfield, planning to invest nearly US$3 billion in harnessing

the prolific potential of this field in central Oman. The company plans to use steam-flooding

to ramp up production from the current output of roughly 8,000 barrels of oil per day (bpd) to

reach a target of 150,000 bpd within five years. It aims to recover one billion barrels of

heavy oil from Mukhaizna over the life of the project, from its present estimated reserves of

two billion barrels.

The 2011 exit rate of gross daily oil production at the Mukhaizna Field was nearly 124,000 barrels of oil                 equivalent per day — over 16 times higher than the production rate in September 2005, when Oxy                      assumed operation of the field. Oxy plans to steadily increase production at Mukhaizna through                         continued expansion of the steam flood project.

 

Import Countries: Europe and GCC countries.

 

Subject has a workforce of approximately 160 employees.

 

 

FINANCIAL DATA

 

Companies registered in Oman are not legally required to make their accounts public and no financial information was released by the company or submitted by outside sources.

 

 

BANKERS

 

·       Oman Arab Bank

     Muttrah Business District

     PO Box: 2010, Ruwi 112

     Muscat

     Tel: (968) 24700161 / 24706265 / 24706267

     Fax: (968) 24797736

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

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.53.98

UK Pound

1

Rs.83.72

Euro

1

Rs.72.08

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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.