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Report Date : |
16.02.2013 |
IDENTIFICATION DETAILS
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Name : |
OCCIDENTAL OF
OMAN INC |
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Registered Office : |
Building No. 182,
2nd Floor, Street No. 72, Way No. 4457, Azaiba Area, Muscat |
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Country : |
Oman |
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Date of Incorporation : |
1982 |
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Legal Form : |
Limited Liability
Company |
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Line of Business : |
Engaged in the
exploration and production of oil and gas |
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No. of Employees : |
160 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Branch of a
Foreign Registered Corporation |
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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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
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Oman |
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 |
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.
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Source : CIA |
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
OCCIDENTAL OF OMAN
INC
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
Subject operates
from a large suite of offices and a factory that are owned and located in the
Industrial Area of Muscat.
Name Position
·
James
Eastlack President
·
Bryan
Humphries Operations
Manager
·
Isam Al
Zadjali Business
Development Manager
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.
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.
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.
·
Oman
Arab Bank
Muttrah Business District
PO Box: 2010, Ruwi 112
Muscat
Tel: (968) 24700161 / 24706265
/ 24706267
Fax: (968) 24797736
No complaints
regarding subject’s payments have been reported.
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 |
|
|
1 |
Rs.83.72 |
|
Euro |
1 |
Rs.72.08 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
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.