MIRA INFORM REPORT

 

 

Report Date :

29.03.2013

 

IDENTIFICATION DETAILS

 

Name :

QATAR PETROLEUM CORPORATION (QP)

 

 

Registered Office :

Al Sadd Plaza West Bay, Al Dafna Area PO Box            3212 Doha

 

 

Country :

Qatar

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

August 1974

 

 

Legal Form :

Government Corporation

 

 

Line of Business :

Engaged in all phases of the oil industry in Qatar.

 

 

No. of Employees :

10,000

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Aa

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

Qatar

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

QATAR - ECONOMIC OVERVIEW

 

Qatar has prospered in the last several years with continued high real GDP growth in 2011. Qatari authorities throughout the financial crisis sought to protect the local banking sector with direct investments into domestic banks. GDP rebounded in 2010 largely due to the increase in oil prices and 2011's growth was supported by Qatar's investment in expanding its gas sector. Economic policy is focused on developing Qatar's nonassociated natural gas reserves and increasing private and foreign investment in non-energy sectors, but oil and gas still account for more than 50% of GDP, roughly 85% of export earnings, and 70% of government revenues. Oil and gas likely have made Qatar the second highest per-capita income country - behind Liechtenstein - and the country with the lowest unemployment. Proved oil reserves in excess of 25 billion barrels should enable continued output at current levels for 57 years. Qatar's proved reserves of natural gas exceed 25 trillion cubic meters, more than 13% of the world total and third largest in the world. Qatar's successful 2022 world cup bid will likely accelerate large-scale infrastructure projects such as Qatar's metro system and the Qatar-Bahrain causeway.

Source : CIA


 

SUMMARY

 

Company Name                                    : QATAR PETROLEUM CORPORATION (QP)

Country of Origin                                   : Qatar

Legal Form                                           : Government Corporation

Registration Date                                  : August 1974

Issued Capital                                       : QR 100,000,000,000

Paid up Capital                                     : QR 100,000,000,000

Total Workforce                                     : 10,000

Activities                                               : Engaged in all phases of the oil industry in Qatar.

Financial Condition                                : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

 

 

 


COMPANY NAME

 

QATAR PETROLEUM CORPORATION (QP)

 

 

ADDRESS

 

Registered & Physical Address

 

Building            : Al Sadd Plaza

Area                 : West Bay, Al Dafna Area

 

PO Box            : 3212

 

Town                : Doha

Country             : Qatar

 

Telephone         : (974) 44491491 / 44402000

Facsimile          : (974) 44831125 / 44402020

Email                : marketing@qp.com.qa / marticio@qp.com.qa / alli@qp.com.qa

 

Premises

 

Subject operates from a large suite of offices that are owned and located in the Central Business Area of Doha.

 

 

KEY PRINCIPALS

 

     Name                                                                                   Position

 

·       HE Dr Mohamed Saleh Al Sada                                             Chairman & Managing Director

 

·       Hamad Rashid Al Mohannadi                                                Vice Chairman

 

·       Fahd Hamad Al Mohannadi                                                   Director

 

·       Nasser Khalil Al Jaidah                                                         Director

 

·       Saad Sharida Al Kaabi                                                          Director

 

·       Khalifa Abdullah Al Suwaidi                                                   Director

 

·       Essa Bin Hilal Al Kuwari                                                        Director

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : August 1974

 

Legal Form                  : Government Corporation

 

Issued Capital              : QR 100,000,000,000

 

Paid up Capital            : QR 100,000,000,000

 

Name of Shareholder (s)                                   Percentage

 

·       Government of Qatar                                        100%

 

 

AFFILIATED COMPANIES

 

     Name                                                                                              QP Stake

 

·       QP Qatargas (3) Limited                                                                    100.0%

·       Qatar Petroleum International Limited                                                 100.0%

·       Amwaj Catering Services Co Limited                                                  100.0%

·       Al Shaheen Energy Services Co Limited                                            100.0%

·       Qatar Petroleum Qatar Gas (QGIV) Limited                                         100.0%

·       Qatar Holding Intermediate Industries Company Ltd                            100.0%

·       Qatar Petroleum Ras Gas (3) Ltd                                                       100.0%

·       Barzan Gas Company Ltd                                                                   93.0%

·       Qatar Vinyl Company Ltd QSC                                                            73.0%

·       RasGas Company Ltd. (RasGas)                                                         70.0%

·       Qatargas Operating Company Limited                                                 70.0%

·       Qatar Liquefied Gas Company Limited (II) (Q.S.C)                                67.5%

·       Ras Laffan Liquefied Natural Gas Company Ltd (II) (RLII)                      67.1%

·       Qatargas Joint Venture- Upstream                                                       65.0%

·       Qatar Liquefied Gas Company Ltd QSC                                               65.0%

·       Ras Laffan Liquefied Natural Gas Company Ltd.(RL)                            63.0%

·       Qatar Chemical Company Ltd Q.S.C (Q-Chem)                                     51.0%

·       Qatex Limited (QATEX)                                                                       51.0%

·       Oryx GTL Ltd. (ORYX)                                                                        51.0%

·       Qatar Chemical Company II Limited (QChem II)                                     51.0%

·       Laffan Refinery Company Ltd                                                              51.0%

·       Qatar Aluminium Company Ltd                                                            50.0%

·       Astad Engineering Consulting and Project Management QSC               50.0%

·       Ras Laffan Olefins Company Ltd QSC                                                 44.5%

·       Qatofin Company Ltd QSC                                                                 35.6%

·       Gasal QSC                                                                                         30.5%

 

 

OPERATIONS

 

Activities: QP is engaged in all phases of the oil industry in Qatar, including exploration and drilling as well as

production, refining, transportation, storage, distribution, sales, export and trading in oil, natural gases and hydrocarbons.

 

ONSHORE OPERATIONS

 

     Dukhan Fields

Dukhan is a large oil field extending over an area of approximately 80 km by 8 km. and is located approximately 80 kms to the west of Doha. Dukhan Field encompasses four reservoirs from north to south - Khatiyah, Fahahil and Jaleha/Diyab, three of which are oil reservoirs, and the fourth contains non-associated gas . Oil and gas are separated in four main degassing stations which are continuously manned namely Khatiyah North, Khatiyah Main, Fahahil Main and Jaleha. Unmanned satellite stations are Fahahil North and Fahahil South, while Khatiyah South is now a manned station. The Diyab satellite station at the south end of the field has no process facilities and the total oil production is sent to Jaleha station for processing. Stabilized crude oil is transported through pipeline to Mesaieed port about 100 km east of Dukhan.

 

Dukhan oil field has production facilities to produce up to 335,000 barrels per day (BPD). Other production facilities are related to associated gas, non-associated gas, raw NGL production from associated gas, Arab D gas cap NGL and Arab D condensate production. In addition to this, facilities for injection of North Field gas into Khuff Reservoir, injection of lean gas into Arab D gas cap and water injection into the main oil reservoirs of Arab C and Arab D for pressure maintenance are also operated on continuous basis in Dukhan.

 

OFFSHORE OPERATIONS

 

QP has two offshore production stations located in the north-east quadrant of Qatar’s territorial waters, PS-2 and PS-3. Both PS-2 and PS-3 platforms produce crude oil, associated gas and condensate. They are located in the Maydan Mahzam (MM) and Bul Hanine (BH) fields. Oil and condensate are piped to Halul Island for storage and export. Gas is primarily used to assist in lifting the oil from the reservoir. Some gas is taken to Halul for fuel.

 

      OPQL (Occidental Petroleum of Qatar Ltd) operates PS-1 (Idd El-Shargi North and South Dome), and TEPQ

      (Total E&P Q) operates Al-Khaleej field, on a production sharing arrangement with QP. Both facilities produce

      crude oil and associated gas, which is taken to Halul Island by sub-sea pipelines for fuel, storage and export.

 

Import Countries: Europe, United States of America and Japan

 

Export Countries: Subject exports its products worldwide, particularly Europe and the Far East

 

Operating Trend: Steady

 

Subject has a workforce of approximately 10,000 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Qatari Riyals (QR 000’s)

 

Consolidated Balance Sheet                                                                               31/12/11             31/12/10

 

Assets

Non-current assets

Property, plant and equipment                                                                           251,432,753      236,823,950

Deferred expenditure                                                                                         1,456,009          1,169,989

Investments                                                                                                      5,954,372          5,113,266

Other long term assets                                                                                      1,818,910          9,316,475

Investment properties                                                                                        133,230             136,190

                                                                                                                        260,795,274      252,559,870

 

Current assets

Cash                                                                                                                 49,009,188        29,164,556

Debtors and prepayments                                                                                 22,073,950        18,866,963

Inventories                                                                                                        11,382,057        8,305,220

                                                                                                                        24,290,980        -

Total assets                                                                                                      367,551,449      308,896,609

 

Equity and liabilities

Capital and reserves

Capital                                                                                                              100,000,000      50,000,000

Retained earnings                                                                                              17,115,711        12,150,989

Other reserves                                                                                                   91,901,442        50,238,213

                                                                                                                        209,017,153      112,389,202

Minority interest                                                                                                 9,291,692          7,585,013

Total equity                                                                                                       218,308,845      119,974,215

 

Non-current liabilities

Loans                                                                                                               73,892,979        74,353,885

Obligations under finance lease                                                                         34,675,621        36,652,227

Provision for employees’ end of service benefits                                                1,232,627          1,120,269

Amounts due to Ministry of Finance                                                                   -                       47,829,514

Deferred income taxes                                                                                      3,653,316          2,895,218

Other liabilities                                                                                                  1,767,891          1,533,131

                                                                                                                        115,222,434      164,384,244

Current liabilities

Creditors and accruals                                                                                       26,614,456        18,763,912

Loans                                                                                                               7,405,714          5,774,238

                                                                                                                        34,020,170        24,538,150

Total liabilities                                                                                                   149,242,604      188,922,394

Total equity and liabilities                                                                                   367,551,449      308,896,609

 

Consolidated Income Statement

 

Sales                                                                                                                289,179,187      188,015,060

Other operating income                                                                                     11,163,144        9,278,989

Total operating revenue                                                                                     300,342,331      197,294,049

 

Operating expenses

Operating, selling and administrative expenses                                                   (33,480,273)      (27,351,817)

Depreciation and amortisation                                                                            (11,943,245)      (10,126,644)

Total operating expenses                                                                                   (45,423,518)      (37,478,461)

 

Net operating income                                                                                        254,918,813      159,815,588

Dividend and interest income                                                                             682,692             806,143

Finance charges                                                                                                (5,911,405)        (5,627,944)

 

Income before royalties, taxes and minority interests                                          249,690,100      154,993,787

Royalties                                                                                                          (62,075,002)      (33,921,038)

Taxes                                                                                                               (96,432,312)      (64,648,584)

Income before minority interests                                                                        91,182,786        56,424,165

Minority interests                                                                                               (2,320,551)        (1,857,429)

Net income for the year                                                                                     88,862,235        54,566,736

 

Local sources consider subject’s financial condition to be Good.

 

 

BANKERS

 

·       Commercial Bank of Qatar Ltd (QSC)

PO Box: 3232

Doha

Tel: (974) 44490222

Fax: (974) 44438182

 

·       Doha Bank Ltd

Al Jasrah Street

PO Box: 3818

Doha

Tel: (974) 44435444

Fax: (974) 44416631 / 44410625

 

·       Qatar National Bank

Government House Road

PO Box: 1002

Doha

Tel: (974) 44413511 / 44407407

Fax: (974) 44415020

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                   January 1999                            July 2002

Credit amount                           15,000                                      23,091

Amount overdue                        0                                              0

Payment terms                          30 days                                    30 days

Payment Method                       Letters of Credit                        Letters of Credit

Paying record                           No Complaints                          No Complaints

Currency                                   Pounds Sterling                        Canadian Dollars

 

 

GENERAL COMMENTS

 

Qatar Petroleum Corporation (QP) was established in 1974 and is engaged in all phases of the oil industry in Qatar. It is wholly owned by the government of Qatar and operates the onshore Dukhan Field, two offshore oil fields (Bul Hanine and Maydan Mahzam) and the North Gas Field, as well as various offshore fields in cooperation with major international oil and gas companies through production-sharing agreements.

 

Local sources report that the subject is the national oil company of Qatar and is wholly owned by the state, and as such it is deemed reliable for respecting all its financial commitments.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.39

UK Pound

1

Rs.82.32

Euro

1

Rs.69.54

 

 

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.