|
Report Date : |
11.06.2013 |
IDENTIFICATION DETAILS
|
Name : |
P.T. ARUN NATURAL GAS LIQUEFACTION |
|
|
|
|
Registered Office : |
Wisma Nusantara, 11th Floor Jalan M.H. Thamrin No. 59 Jakarta Pusat, 10350 |
|
|
|
|
Country : |
Indonesia |
|
|
|
|
Date of Incorporation : |
16.03.1982 |
|
|
|
|
Com. Reg. No.: |
No. AHU-AH.01.10-11312 |
|
|
|
|
Legal Form : |
Limited Liability Company |
|
|
|
|
Line of Business : |
Liquefaction Natural Gas (LNG) Processing |
|
|
|
|
No. of Employees : |
450 persons |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
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) |
|
Indonesia |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDONESIA - ECONOMIC OVERVIEW
Indonesia, a vast polyglot nation, grew more than 6%
annually in 2010-12. The government made economic advances under the first
administration of President YUDHOYONO (2004-09), introducing significant
reforms in the financial sector, including tax and customs reforms, the use of
Treasury bills, and capital market development and supervision. During the
global financial crisis, Indonesia outperformed its regional neighbors and
joined China and India as the only G20 members posting growth in 2009. The
government has promoted fiscally conservative policies, resulting in a
debt-to-GDP ratio of less than 25%, a fiscal deficit below 3%, and historically
low rates of inflation. Fitch and Moody''s upgraded Indonesia''s credit rating
to investment grade in December 2011. Indonesia still struggles with poverty
and unemployment, inadequate infrastructure, corruption, a complex regulatory
environment, and unequal resource distribution among regions. The government in
2013 faces the ongoing challenge of improving Indonesia''s insufficient
infrastructure to remove impediments to economic growth, labor unrest over
wages, and reducing its fuel subsidy program in the face of high oil prices.
Source
: CIA
P.T.
ARUN NATURAL GAS LIQUEFACTION
Head Office
Wisma
Nusantara, 11th Floor
Jalan M.H. Thamrin No. 59
Jakarta
Pusat, 10350
Indonesia
Phones -
(62-21) 3143107 (Hunting), 3900909
Fax - (62-21) 330351, 31930351
E-mail - info@arunlng.co.id
Website - http://www.arunlng.co.id
Building Area - 30 storey
Office Space - 200 sq. meters
Region - Commercial
Status - Rent
Branch Office
Jalan Ir. H. Juanda No. 48
Medan,
220151
North
Sumatera
Indonesia
Phones -
(62-61) 519144 (Hunting)
Fax - (62-61) 519107
Building Area - 2 storey
Office Space - 120 sq. meters
Region - Commercial
Status - Rent
Plant site
Blang
Lancang – Lhokseumawe
Aceh
Utara, 24353
Nangroe Aceh Darusalam
Indonesia
Phones - (62-645) 654002
Fax - (62-645) 654410
Land Area - 1,800 hectares
Building Space - 780 sq. meters
Region - Industrial
Zone
Status - Owned
Date of Incorporation :
16
March 1982
Legal
Form :
P.T.
(Perseroan Terbatas) or Limited Liability Company
Company
Reg. No. :
The Ministry of Law and Human Rights
- No. C2-36.HT.01.01.TH.82
Dated 21 July 1982
- No. AHU-82654.AH.01.02.TH.2008
Dated 6 November 2008
- No. AHU-AH.01.10-11312
Dated 28 March 2013
Company
Status :
Foreign
Investment (PMA) Company
Permit
by the Government Department :
The Department of Finance
NPWP
No. 01.307.771.4-051.000
The Department of Mining and Energy
No.
734/M.183/1974
Dated
30 March 1974
Related
Companies :
a. P.T. PERTAMINA (Upstream Activities,
Downstream Business Products and Investment
Holding)
b. JAPAN INDONESIA LNG COMPANY, Japan
(Investment Holding)
c. MOBIL LNG INDONESIA INC., USA, (Investment
Holding)
Capital
Structure :
Authorized
Capital : Rp.
332,000,000.-
Issued
Capital :
Rp. 83,000,000.-
Paid
up Capital :
Rp. 83,000,000.-
Shareholders/Owners
:
a. P.T. PERTAMINA (Persero) - Rp.
45,650,000.-
Address : Perwira Building 4, 17th Floor
Jl. Medan Merdeka Timur 1 A/
Kelurahan Petojo Utara,
Kecamatan Gambir
Jakarta Pusat
Indonesia
b. MOBIL LNG INDONESIA INC., - Rp.
24,900,000.-
Address :
Wisma GKBI 28th Floor
Jl. Jend. Sudirman Kav. 28
Jakarta Pusat
Indonesia
c. JAPAN INDONESIA LNG COMPANY - Rp.
12,450,000.-
Address :
12-1 Toranomon, 5-chome
Waiko Building 4th Floor
Minato-ku, Tokyo
Japan
Lines
of Business :
Liquefaction
Natural Gas (LNG) Processing
Production
Capacity :
Liquefaction
Natural Gas (LNG) - 52,800 MMCF
Total
Investment :
Owned
Capital -
US$ 2,000 million
Started
Operation :
1974
Brand
Name :
Arun
NGL
Technical
Assistance :
None
Number
of Employee :
450
persons
Marketing
Area :
Export -
100%
Main
Customer :
Buyers
in South Korea and Japan
Market
Situation :
Very
Competitive
Main
Competitors :
P.T.
BADAK NATURAL GAS LIQUEFATION COMPANY
Business
Trend :
Declining
B a n k e r s :
a. P.T. Bank
MANDIRI Tbk
Plaza Mandiri
Jalan Jend.
Gatot Subroto Kav. 36-38
Jakarta Selatan
Indonesia
b. The Bank Of Tokyo – Mitsubishi UFJ Ltd.
Mid Plaza Building
Jalan Jend. Sudirman Kav. 10-11
Jakarta Pusat
Indonesia
c. Bank of America
Indonesia Stock Exchange Building Tower
II, 3rd Floor
Jalan Jend.
Sudirman Kav. 52-53
Jakarta
Selatan
Indonesia
Auditor
:
Internal
Auditor
Litigation
:
No
litigation record in our database
Annual
Sales (estimated) :
2010
– US$ 2,028 million
2011
– US$ 1,248 million
2012
– US$ 1,040 million
Net
Profit (estimated) :
2010
– US$ 60.8 million
2011
– US$ 37.5 million
2012
– US$ 31.2 million
Payment
Manner :
Average
Financial
Comments :
Satisfactory
Board of Management :
President Director - Mr. Iqbal Hasan Saleh
Vice President Director - Mr. Del Yuzar
Directors -
a. Mr. Jingo Takemura
b. Mr. Jeffrey Todd Appleton
c. Mr. Geoffrey Brian Humpreys
d. Mr. Hieaki Ikai
Operation and Maintenance
Manager -
Mr. Jailani Ibrahim
General Service Manager - Mr. Zulkifli AB
Relations and Legal Superintendent - Mr. Hasballah Said
Board of Commissioners :
President Commissioner - Mr. Daniel Syahputra Purba
Commissioners - a. Mr. Richard James Owen
b. Mr. Takahiro Otsuki
Signatories :
President
Director (Mr. Iqbal Hasan Saleh) or Vice President Director (Mr. Del Yuzar) or
one of the Directors (Mr. Jingo Takemura, Mr. Jeffrey Todd Appleton, Mr.
Geoffrey Brian Humpreys or Mr. Hideaki Ikai) which must be approved by Board of
Commissioner.
Management Capability :
Satisfactory
Business Morality :
Satisfactory
Credit Risk :
Average
Credit Recommendation :
Credit should be proceeded with monitor
Proposed
Credit Limit :
Small
amount – periodical review
The
correct name of the Subject is P.T. ARUN NATURAL GAS LIQUEFACTION COMPANY not
P.T. ARUN NGL as stated in your order ref. no. 224560 dated 5 June 2013.
P.T.
ARUN NATURAL GAS LIQUEFACTION COMPANY abbreviated to P.T. ARUN NGL was
established in Jakarta on 16 March 1974 with the authorized capital of Rp.
2,075,000,000 of which Rp. 830,000,000 was issued and fully paid up. The
founding shareholders of the company are P.T. PERTAMINA (Persero) a state oil
company, MOBIL LNG INDONESIA INC of the USA and JAPAN INDONESIA LNG CO.LTD of
Japan. The articles of association of the company have frequently been revised.
In October 1997, the issued and paid up capital was raised to Rp.
2,075,000,000. Then according to the revision of notary deed in October 2008
the company authorized capital was reduced to Rp. 332,000,000 issued capital of
Rp. 83,000,000 of which paid up. With this time the composition of its
shareholders has been changed to become P.T. PERTAMINA (55%), MOBIL LNG
INDONESIA INC., (30%) and JAPAN INDONESIA LNG COMPANY (15%). Then according to
the latest revision of notary documents of Mrs. Siti Safarijah, SH., No. 10
dated 8 March 2013 the company board of director and the board of commissioner
had been changed (see profile of this report). The deed of amendments was approved
by the Ministry of Law and Human Rights in its decision letter No.
AHU-AH.01.10-11312 dated March 28, 2013.
P.T.
ARUN NGL obtained Foreign Capital Investment (PMA) facility issued by the
Capital Investment Coordinating Board (BKPM) to deal with liquefied natural gas
(LNG) and liquefied petroleum gas (LPG). P.T. ARUN LNG plant is located at
Lhokseumawe the northern coast of Sumatra 275 km from Banda Aceh capital of
Nanggroe Aceh Darussalam Province, Indonesia. P.T. Arun LNG plant processes
natural gas from ExxonMobil Gas Fields, The ExxonMobil fields consists of 2
major fields On-shore and Off-shore fields. The Onshore fields is called Arun
field located at Lhoksukon about 30 Km away from LNG Plant. This field was
discovered in late 1971 by Mobil Oil Ind. Inc. The Offshore fields named NSO
(North Sumatra Offshore) Plat-form discovered in late 1990's located
approximately 100 KM from LNG Plant.
P.T.
Arun NGL operates Arun LNG plant, which includes the Condensate and LNG
facilities. The LNG facilities include separation, treating, fractionation and
storage and loading. Instead of uses some processes to produce stabilized
condensate and Liquefied Natural Gas (LNG), there are also two facilities that
used to produce LPG's but no longer in operation. Natural gas and un-stabilized
condensate feed to Arun LNG plant deliver via separate pipelines. The 42 inches
natural gas pipeline that carries feed gas from the Arun field and 24 inches
treated gas from NSO onshore facilities goes to Inlet separation drum referred
as "First Stage Flash Drums" to separate any hydrocarbon liquid from
feed gas. Hydrocarbon liquid in the bottom of separators is sent to condensate
recovery unit for further treatment, while the overhead vapor flows to gas
Treating Units.
The
10 inches pipeline that carries un-stabilized feed condensate from Arun field
and the 3 inches pipeline carriers small amount of condensate feed from NSO
onshore facilities combined with hydrocarbon liquid from bottom of First Stage
Flash drum goes to Condensate Recovery/Stabilization Unit referred as
"Second Stage Flash Drums" for RVP (Raid Vapor Pressure)
stabilization by heating and cooling. The overhead gas from the second stage
separator then sent to low-pressure fuel gas system while the stabilized condensate
product is cooled and sent to product storage.
The
overhead vapor from First Stage Flash Drums will flow to LNG processing Units
that referred as "Train" consists of Gas treating Unit ( Unit-30 )
where the impurities such as mercury (Hg), carbon dioxide (CO2) and hydrogen
sulfide (H2S) are removed from the feed gas and then the sweet gas outlet
Unit-30 goes to Liquefaction Unit ( Unit-40 ) where it is dehydrated to remove
water content, cooled by using propane refrigerant and fractionated in scrub
tower to remove heavy hydrocarbon from the feed gas. The lighter ends such as
methane, ethane, propane and some butane are sent through the Ethane Extraction
Unit ex LPG plant to recover ethane and propane plus to be prepared for MCR
refrigerant components.
Residue
gas outlet this unit (mostly ethane and lighter component) is boosted by the
Residue Gas booster compressor and flow to the Main Cryogenic Exchanger in
Unit-40 for liquefaction. The Scrub Tower bottom containing some mostly ethane,
propane, butane and heavier hydrocarbon components become the feed to
Fractionation/Refrigerant Preparation Unit. Once the gas is liquefied in Main
Cryogenic Exchanger (spiral wound exchanger type) using mixed refrigerant
system that referred as "Mixed Component Refrigerant (MCR)", then
pumped to storage tank and subsequent marine loading. MCR system receives a
make up stream from Refrigerant Preparation Unit and Ethane Extraction Unit;
the mixed-component refrigerant is pre-cooled by propane refrigerant system
before circulated in the Main Heat Exchanger to liquefy the feed gas.
The
company manages 6 units of trains with LNG capacity of 12 million cubic meters,
1.6 million cubic meters of LPG and 120,000 barrels of condensates per month.
Some 85% of the company products is exported to Japan, South Korea and Taiwan
while the rest is locally marketed. The operation of P.T. ARUN NGL has been
declining in the last several years in line with the drastic decline in gas
from gas wells owned by EXXONMOBIL OIL INDONESIA INC., in Nangroe Aceh
Darusalam. P.T. ARUN NGL gas production in 1994 is not as capable of producing
approximately 224 (16.5 million tons) gas cargo per year. However the gas
production in 2010 amounted to 39 cargoes decreased to 24 cargoes in 2011 and
20 cargo in 2012.
However,
in 2013 P.T. ARUN LNG gas production only 16 cargoes per year. With this
condition, the possibility of P.T. ARUN LNG gas production ceased operations in
2014, where there is no more basic materials that can be processed into gas. If
this happens, gas supply from P.T. ARUN LGL for two state owned enterprises
P.T. PUPUK ISKANDAR MUDA (PIM) and P.T. KERTAS KRAF ACEH certainly stalled. Mr.
Iqbal Hasan Saleh, President Director of P.T. ARUN LNG further explained, with
such conditions, it must turn the brain to not waste a machine of plant into
scrap metal refineries later of not operating. According to him, refineries
P.T. ARUN NGL gas plant will be used for the gas receiving terminal region of
Sumatra. According to the Government’s plan Arun LNG plant will be convert LNG
into the oil and gas refinery and large magnificent and a refinery LPG
(Liquefaction Petroleum Gas) and LNG gas receiving terminal.
Generally,
demand for oil and gas equipment, piping systems, fittings, flanges, actuators,
valves and other technical equipments had kept increasing by 8% to 10% per
annum in the last five years in line with the growth of industrial sectors
including oil and natural gas, chemical and petrochemical industry, LNG plant,
oil refinery and other sectors requiring these equipments. It is projected that
the demand will keep going up in five years to come. The competition is very
tight on account of many similar companies operating in the country. Besides
that the growing crude oil price started as from the middle of 1999 and
constantly rising within 2007 has blown fresh air to Indonesian government and
oil companies.
In
the effort of stabilizing the world's crude oil price above US$ 90 per barrel
in 2008 and sharply dropped to US$ 40 to US$ 100 per barrel in early 2011.
Despite crude oil price problem, Indonesia has kept on attempting to increase
its crude oil and natural gas production including natural gas. The business
position of P.T. ARUN NGL is not good because the gas production had been
declining in the several years. Details on production growth of Indonesian
crude oil and natural gas as from 2000 to 2012 are pictured bellows.
|
Year |
Petroleum (000 barrels) |
Gas |
||
|
Gas (000 MSCF) |
LNG (000 MMBTU) |
LPG (MT) |
||
|
2000 |
516,503 |
2,907,327 |
1,411,608 |
2,062,616 |
|
2001 |
490,145 |
2,803,034 |
1,257,446 |
2,190,120 |
|
2002 |
474,884 |
3,031,028 |
1,352,878 |
1,792,575 |
|
2003 |
420,995 |
3,142,605 |
1,347,349 |
1,921,757 |
|
2004 |
438,455 |
3,113,338 |
1,390,466 |
1,677,619 |
|
2005 |
387,698 |
3,036,195 |
1,338,782 |
1,581,727 |
|
2006 |
366,993 |
3,178,278 |
1,159,770 |
1,238,572 |
|
2007 |
357,143 |
2,949,506 |
1,258,951 |
1,671,715 |
|
2008 |
357,501 |
3,136,657 |
1,093,435 |
1,800,383 |
|
2009 |
346,312 |
3,023,944 |
970,769 |
1,560,929 |
|
2010 |
341,228 |
3,291,912 |
1,017,216 |
2,538,106 |
|
2011 |
332,752 |
4,811,814 |
1,373,829 |
n.a. |
|
2012* |
238,946 |
2,396,952 |
890,030 |
n.a |
Source: Statistic of
Central Board
2012* (January – September)
Until
this time P.T. ARUN NGL has not been registered with Indonesian Stock Exchange,
so that they had not obliged to announce their financial statement. The
management of the company is very reclusive towards outsiders and rejected to
disclose its financial condition. We observed that total sales turnover of the
company in 2010 amounted to US$ 2,028 million decrease to 1,248 million in 2011
dropt to US$ 1,040 million in 2012 and projected will be dropt in 2013 due the
declined of the gas to be processed. So far, we did not heard that the company
having been black listed by the Central Bank (Bank Indonesia). The company
usually pays its debts punctually to suppliers.
The
management of P.T. ARUN NGL is led by Mr. Ir. Iqbal Hasan Saleh, M.Sc., (55) a
professional manager with experience in natural gas liquefaction processing. He
graduate from University of Gadjah Mada, Yogyakarta majoring in civil
engineering and previously he is a professional of P.T. Pertamina (Persero).
The company's management is handled by professional staff in the above
business. They have wide relations with private businessmen within and outside
the country. So far, we did not hear that the management of the company being
filed to the district court for detrimental cases or involved in any business
malpractices. The company’s litigation record is clean and it has not
registered with the black list of Bank of Indonesia. Considering the production
of gas of P.T. ARUN NGL had been dropt in the last several years we recommend
to treat prudently in extending a loan to the company.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.57.78 |
|
|
1 |
Rs.89.71 |
|
Euro |
1 |
Rs.76.23 |
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.