MIRA INFORM REPORT

 

 

Report Date :

01.06.2013

 

IDENTIFICATION DETAILS

 

Name :

AZERBAYCAN RESPUBLIKASI DOVLET NEFT SHIRKETI

 

 

Formerly Known As :

GNKAR (GOSUDARSTVENNAYA NEFTYANAYA KOMPANIA RESPUBLIKI AZERBAIJAN)

 

 

Registered Office :

Neftchillar Avenue 73 Sabail District Baku AZ1095

 

 

Country :

Azerbaijan

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

24.11.1995

 

 

Legal Form :

Limited Company own by the States

 

 

Line of Business :

Engaged in prospecting, exploration, extraction and refining of crude oil and gas as well as sales of petrochemical products.

 

 

No. of Employees :

200 by decree of President of Azerbaijan

 

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:

New Manat 10,000,000

Status :

Good

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, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Azerbaijan

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

AZERBAIJAN - ECONOMIC OVERVIEW

 

Azerbaijan's high economic growth during 2006-10 was attributable to large and growing oil and gas exports, but some non-export sectors also featured double-digit growth, including construction, banking, and real estate. In 2012, economic growth picked up to 3.8%. Continued production declines in the oil sector were offset by strong growth in the non-oil sector. However, the non-oil sector growth may be driven primarily by government investment, which may not be sustainable if oil production continues to decline. Oil exports through the Baku-Tbilisi-Ceyhan Pipeline, the Baku-Novorossiysk, and the Baku-Supsa pipelines remain the main economic driver, but efforts to boost Azerbaijan's gas production are underway. The eventual completion of the geopolitically important Southern Gas Corridor between Azerbaijan and Europe will open up another, albeit, smaller source of revenue from gas exports. Azerbaijan has made only limited progress on instituting market-based economic reforms. Pervasive public and private sector corruption and structural economic inefficiencies remain a drag on long-term growth, particularly in non-energy sectors. Several other obstacles impede Azerbaijan's economic progress, including the need for stepped up foreign investment in the non-energy sector and the continuing conflict with Armenia over the Nagorno-Karabakh region. Trade with Russia and the other former Soviet republics is declining in importance, while trade is building with Turkey and the nations of Europe. Long-term prospects depend on world oil prices, Azerbaijan's ability to negotiate export routes for its growing gas production, and its ability to use its energy wealth to promote growth and spur employment in non-energy sectors of the economy.

Source : CIA


Company name

 

Azerbaycan Respublikasi Dovlet Neft Shirketi (Correct)

 

SOCAR - THE STATE OIL COMPANY OF AZERBAIDJAN REPUBLIC (Requested)

 

 

ADDRESS

 

Street   : Neftchillar Avenue 73

 

Area     : Sabail District

 

Town     : Baku AZ1095

Country  : Azerbaijan

 

Telephone: (994 12) 521 0000 ext. 10016 (Saru Gasimov) / ext. 10183 (Legal Department) / 521 0201 / 521 0317 / 521 0129 (Vugar Gasanov) /

 521 0122 (Nazim Ismayilov) / 521 0053 (Financial Department) / 521 0084 /521 0057 / 521 0335 / 521 0203 / 521 0171 (Economic Department) / 521 0152 / 521 0190 / (994 50) 210 2130 (Azer Kurbanov) / 521 0332

Fax      : (994 12) 521 0383 / 521 0173 / 521 0168

E-Mail   : info@socar.az / azer2000@rambler.ru

Website  : www.new.socar.az

 

Shortform Name : SOCAR / ARDNSh 

 

English Translation : State Oil Company Of Azerbaijan Republic (SOCAR)

 

Also Known As : GNKAR (Gosudarstvennaya Neftyanaya Kompania Respubliki Azerbaijan)

 

 

SENIOR COMPANY PERSONNEL

 

   Name                                                                                                 Position

 

1. Rovnag Ibrahim Oglu Abdullayev                                                          President

 

2. Khoshbakht Yusifzade                                                            First Vice President / Geology,

                                                                                                            Geophysics and Field Development

 

3. Elshad Nasirov                                                                       Vice President / Investments &

                                                                                                             Marketing

 

4. David Mammadov                                                                   Vice President / Refining

 

5. Mikayil Ismayilov                                                                    Vice President

           

6. Badal Badalov                                                                        Vice President / Social Issues

           

7. Khalik Mammadov                                                                              Vice President / Human Resources,

                                                                                                            Information Technologies

 

8. Rahman Gurbanov                                                                  Vice President / Oil-gas

                                                                                                            Production and Transportation

 

9. Tofig Gahramanov                                                                   Vice President / Strategic

                                                                                                            Development

 

10.Suleyman Gasymov                                                               Vice President / Economics Issues

 

11.Rafiga Huseyn-Zade                                                               Vice President / Ecology

 

12.Vugar Sharifov                                                                       Head of Economic Department

 

13.Anver Gasimov                                                                      Deputy Head of Economic

                                                                                                            Department

 

14.Nazim Ismayilov                                                                    Chief Accountant

 

15.Vagif Mustafaev                                                                     Deputy Chief Accountant

 

16.Rashid Guseinov                                                                   Deputy Chief Accountant

 

 

 

17.Azer Kurbanov                                                                       Import Manager at Social

                                                                                                            Development Department    

 

18.Saru Gasimov                                                                       Deputy Head of Legal Department

 

19.Vugar Gasanov                                                                      Press-Service Manager

 

Total Employees : 80,000

 

PAYMENTS

 

No complaints have been heard regarding payments from local suppliers

or banks.

 

Subject is the biggest producer of oil and gas in Azerbaijan and is

owned by the state.

 

We consider it is acceptable to deal with subject for LARGE amounts,

although it is  normal accepted practice for international suppliers

to deal on secured terms with Azerbaijani importers.

 

Opinion on maximum credit : NEW MANAT 10,000,000 - Low to mid eight

                            figure credits (NEW MANAT) will not be

                            considered unusual for this important

                            company. However when much high amounts

                            are involved, terms should be clearly

                            stipulated.

 

Trade risk assessment : Normal

 

 

SIGNIFICANT CHANGES

 

According to local press release by news.az dated 23 February 2011:

 

SOCAR starts drilling two wells at Darwin’s Bank

 

The State Oil Company of Azerbaijan started drilling two new wells at the Darwin’s Bank field.

 

According to sources in the company, the well is drilled from platform No 660. According to geologists, after their commissioning, the daily oil production from each will make up 6 tons. Platform No 660 is intended for drilling 12 wells.

The Darwin’s Bank field has been developed since 1950. Through this period 651 wells have been drilled and 16,200,000 tons of oil produced. The residual field reserves are estimated at 3,000,000 tons. Currently, 114 wells are in operation, producing 205 tons of oil daily.

 

 

PRINCIPAL BANKERS

 

NAME     : INTERNATIONAL BANK OF AZERBAIJAN

 

Branch   : Nizami Street 67

Town     : Baku

 

Telephone: (994 12) 498 1053 / 493 1842

Fax      : (994 12) 493 4091 / 498 1158

 

Acc. No.  : AZ38IBAZ38010019449306332120 (AZN)

Acc. No.  : AZ28IBAZ38110018409306332120 (USD)

Acc. No.  : AZN 330201

Corr. Acc.: 0137010002944

SWIFT Code: IBAZAZ2X

VOEN      : 9900001881

Code      : 805250

 

 


FINANCIAL INFORMATION

 

Consolidated Balance Sheets as at 31 December 2011 showed (latest available):

 

                                                2011          2010    

                                          (in thousands of NEW MANAT)

 

ASSETS 

 

Current assets        

Cash and equivalents                       1,157,744       961,761

Restricted cash                               94,370       656,193

Trade and other receivables                2,740,803     2,392,856

Inventories                                  936,145       790,021

Other current financial assets                     -        12,961

Total current assets                       4,929,062     4,813,792

 

Non-current assets     

Property, plant and equipment              8,919,860     8,252,730

Goodwill                                     103,248       123,448

Intangible assets other than goodwill        405,491       499,813

Investments in jointly controlled entities   392,399       265,894     

Investments in associates                  1,186,370       351,085

Loans receivable from

jointly controlled entities                  178,484       263,235

Deposits                                           -       399,011

Deferred tax asset                           483,483       408,972

Other long-term financial assets              82,365        79,148

Other long-term assets                       279,149       220,640

Total non-current assets                  12,030,849    10,863,976

TOTAL ASSETS                              16,959,911    15,677,768

 

LIABILITIES

 

Current liabilities         

Trade and other payables                   2,806,900     2,445,829

Short-term and current portion

of long-term borrowings                      761,518       996,832

Corporate income tax payable                  22,169         1,979

Taxes payable                                435,521       229,931

Other provisions for liabilities and charges  66,124       199,077

Deferred acquisition consideration payable         -       272,935

Total current liabilities                  4,092,232     4,146,583

Non-current liabilities  

Long-term borrowings                       2,218,770     2,062,844

Asset retirement obligations                 468,384       324,632

Other provisions for liabilities and charges 246,765       282,194

Deferred income                               94,401       101,183

Deferred tax liability                       506,336       509,140

Other non-current liabilities                 84,403        91,097

Total non-current liabilities              3,619,059     3,371,090

TOTAL LIABILITIES                          7,711,291     7,517,673

 

EQUITY                                                         

Charter capital                            1,059,258       632,732

Additional-paid-in-capital                   784,809       236,526

Retained earnings                          6,749,596     6,691,653

Cumulative translation differences           (77,272)     (105,095)

Equity attributable to equity

holders of the Group                       8,516,391     7,455,816

Non-controlling interest                     732,229       704,279

Total equity                               9,248,620     8,160,095

 

TOTAL LIABILITIES AND EQUITY              16,959,911    15,677,768  

 

PROFIT AND LOSS ACCOUNT

   

Revenue                                    8,132,731     5,527,265

Cost of sales                             (5,391,983)   (3,255,907)

Gross profit                               2,740,748     2,271,358

Distribution expenses                       (437,154)     (256,030) 

General and Administrative expenses         (296,458)     (282,196)

Losses on disposal of property,

plant and equipment                          (25,731)      (23,915)

Social expenses                             (308,353)     (199,904)

Exploration and evaluation expenses           (2,158)       (6,742)   

Research and development                     (14,787)      (21,917)

Other operating expenses                    (262,025)     (326,270)

Other operating income                       149,003       178,578

Operating profit                           1,543,085     1,332,962     

Finance income                               672,400        67,175

Finance costs                               (210,950)     (175,191)

Foreign exchange losses, net                (412,888)      (91,510)

Share of result of jointly

controlled entities                           19,221         6,390

Share of result associates                   173,976        99,080

Loss on disposal of joint

ventures and associates                            -          (902)

Profit before income tax                   1,184,844     1,238,004  

Income tax expense                          (375,251)     (582,264)

Profit for year                              809,593       655,740

 

Other comprehensive income    

Currency translation differences            (111,586)      (16,363)

Total comprehensive income for the year      698,007       639,377

Profit is attributable to:

Equity holders of the Group                  953,749       670,987

Non-controlling interest                    (144,156)      (15,247)

                                             809,593       655,740

 

Total comprehensive income attributable to  

Equity holders of the Group                  981,572       709,150

Non-controlling interest                    (283,565)      (69,773)

                                             698,007       639,377

  

Financial year ends 31 December.

 

 

LEGAL STATUS AND HISTORY

 

Date Started : 24 November 1995

 

History : Subject has its origins in a private company which was

established in 1870s. In 1920s the company was nationalized. At different times the company has been carrying different names : Azneftcomitte, Azneftkombinat, Azerneft, Azerneft Zavodlar, Azernaftgayirma, Aznaftchikarma.

         

The subject company was established in Azerbaijan on 24 November 1995, however the origins can be traced back to 13 September 1992, by the merger of Azerbaijan's two state oil companies, Azerineft and Azneftkimiya. On 10 January 1994 in accordance with the President's Decree No. 50 Oil and Gas Exploration Production Unions were created within the subject. Subject's former President Natik Aliyev was appointed Azerbaijan's Minister of Industry and Energy in January 2006.

 

C.R. No. : 200 by decree of President of Azerbaijan

 

Tax No. : VOEN 9900003871

 

Authorised Capital : NEW MANAT 1,059,258,000 (increased from NEW MANAT 632,732,000 in 2011)

 

Paid-Up Capital : NEW MANAT 1,059,258,000 (increased from NEW MANAT 632,732,000 in 2011)

 

State owned company fully responsible for its own undertakings.

 

Affiliated companies of State Oil Company Of Azerbaijan Republic :

 

Subsidiaries

 

1.  Azeriqaz Production Union

   (Azeriqaz Istehsalat Birliyi)

    Yusif Safarov Street 23 

    Khatai District

    Baku AZ1025

    Telephone: (994 12) 490 43 34

    Fax      : (994 12) 490 42 92

    Est.: 17 March 1997

    Tax No.: 9900001621

    Capital : NEW MANAT 616,526,354.55

 

2.  Azneft Production Union

   (Azerbaycan Respublikasi Dovlet Neft Sirketi "Azneft" Istehsalat

    Birliyi)

    Aga Nematulla Street 39 

    Narimanov District

    Baku AZ0033

    Telephone: (994 12) 567 0133

    Fax      : (994 12) 521 1155

    Est.: 16 June 2003

    Tax No.: 9900010511

    Capital : NEW MANAT 1,467,577

 

3.  Azerikimya Production Union

   (Azerbaycan Respublikasi Dovlet Neft Sirketinin “Azerikimya”

    Istehsalat Birliyi)

    Samed Vurgun Street 86 

    Sumqayit AZ5000

    Telephone: (994 12) 497 6386

    Fax      : (994 12) 447 8275

    Est.: 12 March 1993

    Tax No.: 9900001191

    Capital : NEW MANAT 10,006,09.86

 

4.  Heydar Aliyev Adina Baki Darin Ozullar Zavodu

   (Heydar Aliyev Baku Deep Water Jacket Factory)

    Salyan Highway 83

    Qaradaq District

    Baku AZ1083

    Telephone: (994 12) 521 0000

    Fax      : (994 12) 521 1846

    Managing Director : Safikhan Rustam Oglu Mamedov       

    Employees : 2,000

    Est. : 31 March 2004

    Tax No.: VOEN 9900009151

    Capital : NEW MANAT 51,608,570

 

5.  SOCAR-CSCR MMC

    Sabail District, Neftchiler Avenue 73

    Baku AZ1095

    Managing Director : Imanverdi Aliqulu Oglu Hasanov

    Est.: 9 March 2010

    Tax No.: VOEN 1701091921

    Capital : NEW MANAT 100

    Shareholder : 

             - Caspain Ship Construction and Repair MMC

             - Azerbaycan Respublikasi Dovlet Neft Shirketi

 

6.  SOCAR Qalf QSC

    Nasimi District, Samed Vurgun Street 86, Mahalle 667

    Baku AZ1022

    Managing Director : Vasif Miryusif Oglu Abdulkarimov

    Est.: 5 May 2011

    Tax No.: 1401984651

    Capital : NEW MANAT 100,000

7.  Baki Gemiqayirma Zavodu MMC

    N. Aliyev Street 38A, Block 1130-33

    Baku AZ1025 

    Telephone: (994 12) 464 1537

    Fax      : (994 12) 464 1537

    E-Mail   : hasanov@gmail.com

    Est.: 10 May 2011

    Tax No.: VOEN 1701212051

    Capital : US DLRS 30,000,000

 

8.  SOCAR Petroleum QSC

    Istiqlaliyyet Street 31

    Sabail District

    Baku 

    Telephone: (994 12) 437 1068

    Fax      : (994 12) 437 1067

    Managing Director : Orkhan Abbas Oglu Huseynov

    Est.: 15 September 2008

    Capital : NEW MANAT 30,000

    Shareholders :

            - A.P. International LLC (USA)

            - Azerbaycan Respublikasi Dovlet Neft Shirketi

 

9.  Ekol Muhendislik Xidmetlri QSC

   (Ekol Engineering Services CJSC)

    Babek Avenue 10B

    Khatai District

    Baku AZ1025

    Telephone: (994 12) 464 1435 / 464 1440

    Fax      : (994 12) 464 1435

    Est.: 1 March 2006

    Tax No.: VOEN 1600506211

 

10. AAS-Ekol MMC

    Maskva Avenue, Mahalle 3001

    Nasimi District

    Baku AZ1102

    Managing Director : Vaqif Imran Oglu Amrahov

    Est.: 1 February 2010

    Tax No.: VOEN 1401740701

    Shareholders:

            - Ekol Muhendislik Xidmetlri QSC

            - AA Services Ltd (British Virgin Islands)

 

11. Azerbaycan Respublikasi Dovlet Neft Shirketinin Sosial Inkishaf

    Idaresi

    Uzeyir Hacibeyov Street 16

    Sabail District

    Baku

    Telephone: (994 12) 521 1407 / 521 1434 / 512 0245 / (994 50) 210

    2130

    Fax      : (994 12) 521 1434

    Managing Director: Gasym Ibragimov

    Est.: 2006 

    Tax No.: VOEN 9900077081 

 

12. Azerbaycan Respublikasi Dovlet Neft Shirketi “Azerneftyag” Neft

    Emali Zavodu

    Nobel Avenue 64

    Khatai District

    Baku AZ1026

    Managing Director : Rovshan Imran Oglu Hasanov

    Est.: 10 July 2003

    Tax No.: VOEN 9900013011

 

13. Azerbaycan Respublikasi Dovlet Neft Shirketinin Ekologiya Idaresi

    Neftchillar Avenue 73

    Sabail District

    Baku AZ1005

    Managing Director : Azer Hasan Oglu Aliyev

    Est.: 3 November 2006

    Tax No.: VOEN 9900080151

    Capital : NEW MANAT 835,444

 

14. Azerbaycan Respublikasi Dovlet Neft Shirketinin Geofizika ve

    Geologiya Idaresi

    Heydar Aliyev Avenue 83A

    Narimanov District

    Baku AZ1033

    Managing Director : Vaqif Adil Oglu Abdullayev

    Est.: 16 February 2006

    Tax No.: VOEN 9900028391

    Capital : NEW MANAT 124,934,760

 

15. Heydar Aliyev Adina Baki Derin Ozuller Zavodu

    Salyan Highway

    Sahil Qesebesi

    Qaradag District

    Baku AZ1083

    Managing Director : Ayaz Agaverdi Oglu Qarayev

    Est.: 31 March 2004

    Tax No.: VOEN 9900009151

    Capital : NEW MANAT 51,608,570

 

16. Bakı Ali Neft Mektebi

 

Joint ventures, operating companies and alliances founded by SOCAR

and foreign companies :

 

Joint ventures:

 

- Azerbaijan John Brown CJSC

 

- "ANSHAD Petrol" JV

 

- AzGerneft LLC

 

- "Shirvan Oil" JV

 

Operating companies:

 

- Azerbaijan International Operating Company (AIOC)

 

- "BP (Shah-deniz) OC

 

- Caspian Pipe Coatings LLC

 

- Kayman Adalarinin Salyan Oyl Limited Sirketinin Azerbaycan

  Respublikasindaki Filiali

  Ahmed Recebli Street 27B

  Narimanov District

  Baku AZ1052

  Telephone: (994 12) 497 7415

  Fax      : (994 12) 497 7419

  Est.: 12 May 1999

  C.R. No. : 560

  Tax No. : VOEN 9900065021

 

- "Karasu" OC

 

- "Gobustan" OC

 

- "Binagadi" Oil Company

 

- "Surakhani Oil" OC S.A.

 

- "Azerbaijan ShengLi" Oil Company

 

- "MEP Garachukhur" OC

 

- "Kura Valley" OC

 

- "Absheron" OC

 

- Sarmatia LLC

 

- SOCAR Baghlan CJSC

 

- SOCAR Cape LLC

 

- SOCAR Energy Georgia LLC

 

- SOCAR Gas Supply LLC

 

- SOCAR UGE LLC

 

- SOCAR UMID LLC

 

- SUPRA Holding Limited LLC

 

Joint venture on insurance:

 

- Ateshgah Insurance Company CJSC

 

Joint ventures on drilling:

 

- Azeri Drilling Company LLC

 

- Caspian Drilling Company JV

 

- SOCAR-AQSh MMC

  Racabli Street 40

  Baku AZ1052

  Telephone: (994 12) 565 1515

  Fax      : (994 12) 565 1555

  Managing Director : Ramin Isayev

  Employees: 400

  Est.: 19 December 2007

  Tax No.: VOEN 1700490591 

  Capital : US DLRS 100,000 

  Shareholders:

          - Azerbaycan Respublikasi Dovlet Neft Shirketi - 51%

          - Absheron Qazma LLC                           - 49%

Joint Venture on engineering-technological exploration:

 

- Azeri-Fugro LLC

 

Joint venture on gunpowder production, drilling mud production:

 

- Azeri M-I Drilling Fluids Ltd JV 

  Karat Business Centre, 6th Floor

  M. Mukhtarov Street 201

  Baku AZ1065

  Telephone: (994 12) 497 4213 / 497 4219 

  Fax      : (994 12) 497 2221

  General Manager : Nicolas Hore

  Employees: 250

  Est.: 31 January 1997

  C.R. No. : 141

  Tax No.: VOEN 9900004251 

  Capital : US DLRS 100,000

  Shareholders:

          - Azerbaycan Respublikasi Dovlet Neft Shirketi - 51%

          - M-I LLC                                      - 49%

 

Poultry and egg farming:

 

- "Azertell" Joint Venture

 

Construction sector activities:

 

Joint ventures:

 

- Azfen Birge Muessisesi

  (Azfen JV)

  Istiglaliyyat Street 31

  Baku AZ1001

  Telephone: (994 12) 492 5835 / 492 5725

  Fax      : (994 12) 492 5727

  General Manager : Hamid Gasanov                   

  Employees: 1,600

  Est.: 11 January 1996

  C.R. No. : 1006

  Tax No.: VOEN 9900016611 (formerly 170002547)

  Capital : NEW MANAT 276,885

  Shareholders:

          - Azerbaycan Respublikasi Dovlet Neft Shirketi - 60%

          - Tekfen Insaat ve Tesisat AS                  - 40%

 

- Azneftgastikinti LLC 

 

- Caspian Offshore Fabricators LLC

 

-  Caspian Shipyard Company LTD

   South Bay KMNF Shipyard

   Baku AZ1023

   Azerbaijan

   Telephone:  (994 12) 449 9930

   Fax      :  (994 12) 449 9931

   E-Mail   :  csc@csc.az

   President: Yan Naing Myint

   Employees: 1,000

   Est.: 15 December 1997

   C.R. No. : 307

   Tax No.: VOEN 99000046321

   Capital : US DLRS 200,000

 

Alliances:

 

SOCAR - A.J. Crane

 

Laboratory activities:

 

- AzLab LLC

 

Gas compression and sales:

 

- AzTurgas Joint Venture 

 

Production of explosives:

 

- "Energy Solutions Group" CJSC

 

Media:

 

- "Interfax-Azerbaijan" LLC 

 

Joint venture on geophysical surveys:

 

- Caspian Geophysical Company JV

 

Joint venture on service of the oil and gas equipment:

 

- Oyl and Qas Proserv MMC

  (Oil and Gas Proserv LLC) 

  Tagizade Street 21

  Khatai District

  Baku AZ1025

  Telephone: (994 12) 490 7306 / 490 8459

  Fax      : (994 12) 490 8458

  Est.: 7 July 2005

  Tax No.: VOEN 2000489761 (issued date 22/07/2005)

  Capital : EURO 100,000

 

- "SOCAR - KPSh" LLC

 

Joint venture on transport works

 

- "Gross Caspian & Gas Logistics" LLC

 

Sale of oil products :

 

- "SOCAR Energy Georgia" LLC

 

Oil pumping:

 

- Carlina Overseas Corporation

 

Operating companies on pipeline transport:

 

- BTC Co.

 

- South Caucasus Pipeline

 

Alliances on ship management:

- SOCAR CSOF - BUE Caspian

 

- SOCAR CSOF – Tidewater

 

- SOCAR - CMS

 

Alliance on logistics:

 

- SOCAR – CSM 

 

Joint venture on purification works in oil pipelines and collectors

 

- "SOCAR - Rodan" LLC

 

Joint venture on cutting and transportation of metal structures :

 

- "SOCAR - ASM" LLC

 

Joint venture on implementation of new projects in Turkey :

 

- SOCAR Turcas Energy Anonim

 

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Engaged in prospecting, exploration, extraction and refining of crude

oil and gas as well as sales of petrochemical products.

 

Subject operates as a social development department (Sosial Inkisaf Idaresi) of SOCAR.

 

Oil production volume : 8,944,400 tonnes - 2002

                        8,924,700 tonnes - 2003

                        8,976,400 tonnes – 2004

                        8,967,400 tonnes - 2005

                        8,993,800 tonnes - 2006

                        8,800,900 tonnes - 2007

                        8,651,300 tonnes - 2008

                        9,543,300 tonnes - 2009

                        8,459,700 tonnes – 2010

                        8,400,900 tonnes – 2011 

                        8,242,580 tonnes – 2012

 

Gas production volume : 4,191.7 million cubic meters - 2002

                        4,152.4 million cubic meters - 2003

                        3,999.8 million cubic meters – 2004

                        3,930.6 million cubic meters - 2005

                        4,456.0 million cubic meters - 2006

                        5,997.6 million cubic meters - 2007

                        7,752.6 million cubic meters - 2008

                        6,903.0 million cubic meters – 2009

                        7,178.9 million cubic meters – 2010

                        7,084.2 million cubic meters – 2011

                        6,885.1 million cubic meters – 2012

 

Imports equipment from European countries, USA and Japan.

Exports to European countries.

 

Since 1994, the subject has signed 25 major production sharing

agreements with consortiums of foreign companies and two major

pipeline agreements - BTC (Baku-Tbilisi-Ceyhan) and SCP (Southern

Caucasus Pipeline).

 

 

FACILITIES

 

The Company has the following facilities :

 

Office premises located at the heading address.

 

Subject has the following oil-gas development units :

 

- 51 units for onshore oil and gas extraction including 6 drilling

  and exploratory directorates, 10 oil-gas production directorates,

  10 technical transportation directorates, oil and gas research and

  engineering institutes and construction directorates;

 

- 32 units for offshore oil and gas extraction including 4 drilling

  and exploratory directorates and 10 oil-gas production

  directorates;

 

- 6 geophysical and geological units including scientific research

  institute;

 

- oil refineries "Azerneftyag" and "Azerneftyanajag";

 

- oil machinery facilities including 9 factories;

 

- main oil pipeleine unit;

 

- trusts including "Kasmorburstroy" bore construction,

"Kasmosotzstroy" social facilities construction, "Shelfpryektstroy"

  and oil repairing trust;

 

- commissioning and automation enterprise.

 

REGISTERED OFFICE

 

Neftchillar Avenue 73

Sabail District

Baku AZ1095

SPECIAL NOTE

 

You enquired on: SOCAR - THE STATE OIL COMPANY OF AZERBAIDJAN REPUBLIC is incorrect. Please note that the correct registered name is as per heading.  

 

The postal address given by you: AZ1000, Baku is incorrect. Please note that subject’s administrative office postal address is as per heading.

 

Interviewed: Vugar Gasanov (Press-Service Manager).

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.56.49

UK Pound

1

Rs.86.01

Euro

1

Rs.73.68

 

 

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%)

 

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.