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Report Date : |
29.07.2014 |
IDENTIFICATION DETAILS
|
Name : |
P.T. BADAK
NATURAL GAS LIQUEFACTION |
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Registered Office : |
Wisma
Nusantara, 9th Floor, Jalan M.H. Thamrin No. 59, |
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Country : |
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Date of Incorporation : |
18.05.1974 |
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Com. Reg. No.: |
AHU-AH.01.10-40494 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Engaged in processing of Natural Gas to produce three types of products, namely LNG, LPG and Condensate. |
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No of Employees : |
1,109 Employees |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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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 01, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
Indonesia |
B1 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderate Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderate High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
D |
Indonesia ECONOMIC OVERVIEW
Indonesia, a
vast polyglot nation, has grown strongly since 2010. During the global
financial crisis, Indonesia outperformed its regional neighbors and joined China
and India as the only G20 members posting growth. The government has promoted
fiscally conservative policies, resulting in a debt-to-GDP ratio of less than
25% 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 also faces the challenges of quelling labor unrest and
reducing fuel subsidies in the face of high oil prices.
|
Source : CIA |
P.T. BADAK NATURAL
GAS LIQUEFACTION
Head Office
Wisma Nusantara,
9th Floor
Jalan M.H. Thamrin No. 59
Jakarta Pusat,
10350
Indonesia
Phones - (62-21) 31930243,
31936317
Fax - (62-21) 3142974
E-mail - infocenter@badaklng.co.id
Website - http://www.badaklng.co.id
Building Area - 30 storey
Office Space - 200 sq. meters
Region - Commercial
Status - Rent
Representative
Office
Balikpapan, 76101
East Kalimantan
Indonesia
Phones -
(62-542) 764710, 764714
Fax - (62-542) 762811
Land Area - 2,500 sq. meters
Building Space - 1,500 sq. meters
Region - Industrial
Zone
Status - Owned
Plant Site
South Bontang
Bontang, 75324
East Kalimantan
Indonesia
Phones -
(62-548) 42100, 21133
Fax - (62-548) 27500, 21605, 22388
Land Area - 2,000 hectares
Building Space - 1,500 sq. meters
Region - Industrial
Zone
Status - Owned
18 May 1974
P.T. (Perseroan Terbatas) or Limited
Liability Company
The Ministry of
Law and Human Rights
- No. C-7692.HT.01.04.TH.99
Dated
26 April 1999
- No. AHU-51736.AH.01.02.TH.2010
Dated
3 November 2010
- No. AHU-AH.01.10-40494
Dated
1 October 2013
Foreign Investment (PMA) Company
The Department of
Finance
NPWP No. 01.318.062.5-051.000
The Department of
Industry and Trade
TDP No. 09051138708
a. JAPAN
INDONESIA LNG COMPANY, Japan (Investment Holding)
b. P.T.
PERTAMINA (Upstream Activities, Downstream Business Products and Investment
Holding)
c. TOTAL
E&P INDONESIE (Oil and Gas Exploration and Production)
d. VIRGINIA
INDONESIA COMPANY (Oil and Gas Exploration and Production)
Capital
Structure :
Authorized
Capital : Rp.
415,000,000.-
Issued Capital : Rp. 415,000,000.-
Paid up Capital : Rp.
415,000,000.-
Shareholders/Owners
:
a. P.T.
PERTAMINA (Persero) -
Rp. 228,250,000.-
Address : Jl. Medan Merdeka Timur
No. 1A
Jakarta Pusat
Indonesia
b. VIRGINIA
INDONESIA COMPANY -
Rp. 83,000,000.-
Address : Wisma Mulia
Jl. Jend. Gatot
Subroto Kav. 42
Jakarta Selatan
Indonesia
c. JAPAN
INDONESIA LNG CO. LTD. -
Rp. 62,250,000.-
Address : Wisma Nusantara
Jl. M.H.
Thamrin No. 59
Jakarta Pusat,
Indonesia
d. TOTAL
E&P INDONESIE -
Rp. 41,500,000.-
Address : World Trade Centre II
Jl. Jend.
Sudirman Kav. 29-31
Jakarta Selatan
Indonesia
Lines of Business :
Natural Gas Liquefaction
Production Capacity :
a. Liquefaction
Natural Gas - 204,45 std cargoes (634,825,672 Giga Joule)
b. Liquid
Petroleum Gas (LP) - 475,736 tons
(23,716,026 Giga Joule)
c. Condensate - 976,895 cubic
meter (32,770,940 Giga Joule)
Total Investment :
a. Owned
Capital -
US$ 709.3 million
b. Loan
Capital - US$
1,655.1 million
c. Total
Investment - US$
2,364.4 million
Started Operation :
1977
Brand Name :
Badak NGL
Technical Assistance :
Virginia Indonesia Company of the
USA
Number of Employee :
1,109 persons
Marketing Area :
Export -
100%
Main Customer :
Buyers in Japan, South Korea and
others
Market Situation :
Very Competitive
Main Competitors :
P.T. ARUN NGL
Business Trend :
Growing
Bankers :
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) :
2011 – Rp.
35,000.0 billion
2012 – Rp.
38,200.0 billion
2013 – Rp.
41,000.0 billion
Net Profit
(estimated) :
2011 – Rp.
2,100.0 billion
2012 – Rp. 2,483.0
billion
2013 – Rp.
2,870.0 billion
Payment Manner
:
Average
Financial
Comments :
Satisfactory
Board of Management :
President Director - Mr. Nanang Untung
Director -
Mr. Rachmat Hardadi
Board of Commissioners :
President Commissioner -
Mr. Djohardi Angga Kusumah
Commissioners -
a. Mr. Jean Francois Capelle
b. Mr. Jingo Takemura
c. Mr. Gerhard Marten Rumeses
d. Mr. Leonard Bonali
Signatories :
President Director (Mr.
Nanang Untung) or the Director (Mr. Rachmat Hardadi) which must be approved by
Board of Commissioner
Management Capability :
Good
Business Morality :
Good
P.T. BADAK NATURAL GAS LIQUEFACTION (P.T. BADAK NGL) was established on
18 March 1974 in Jakarta with an authorized capital of Rp. 2,075,000,000 of
which Rp. 425,000,000 was issued and paid up. The company was founded by the
state oil company PERTAMINA of Indonesia, ROY M. HUFFINGTON INC., of the USA
and JAPANINDONESIA LNG COMPANY Ltd., of Japan. The company’s notarial act was
since revised a couple of times, later in January 1993 when ROY M. HUFFINTON
INC., of the USA with drew as was replaced by VIRGINIA INDONESIA COMPANY of the
USA and TOTALFINA ELP E&P INDONESIE (ex. TOTAL INDONESIE) of France. The
latest according to the revision of notary deed Mrs. Netty Maria Machdar, SH.,
no. 66 dated 12 September 2013 the company authorized capital was reduced to Rp.
415,000,000 wholly issued and paid up. With this time the composition of its
shareholders has been changed to become P.T. PERTAMINA (55%), VIRGINIA
INDONESIA COMPANY (20%), JAPAN INDONESIA LNG CO., LTD., Japan (15%) and TOTAL
E&P INDONESIE of France (10%). The deed of amendments was approved by the
Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-40494
dated October 1, 2013.
P.T. BADAK NGL had been operating since 1977 in natural gas liquefaction
with its mining location at South Bontang, East Kalimantan. As of the end 1997
it operated 6 refineries with a production capacity of 16.39 million tons LNG
and 0.4 million tons LPG per year. In November 1997, the refinery-7 owned by
P.T. BADAK NGL started producing with a capacity of 2.6 million tons per year.
The development of the refinery-7 has absorbed an investment of US$ 969.5
million coming from syndicated loans of Japan Exim Bank, The Fuji Bank Ltd.,
Long Term Credit Bank (all of Japan), Credit Lyonnais of France and Bontang
Train G Project Finance Co. Ltd. The funding system is under the trustee
borrowing scheme and Bank of America of the USA acting as trustee Bank. By the
end 1999 the company increased production capacity of 2.95 million tons LNG per
year from the refinery-8 known as Train H. The product is entirely exported to
Japan, Taiwan and South Korea. In January 2001 P.T. BADAK NGL was awarded USI
14001 certificate issued by Lloyds Register Quality (LRQA) domiciled in London,
the UK.
Due to the continuous increase of LNG demand in Japan, Taiwan, and
Korea, then Train E was constructed in 1987-1989, while train F was
constructed in 1991-1993. Since 1992 some LNG productions from this LNG Plant
have also been exported to South Korea.
The development of the Badak LNG Plant had been continued by the
construction of the Train G that was completed in 1997 and Train H which was
completed in the end of 1999. By 8 train's operation, the production capacity
is able to reach into ± 22 million tons LNG/year. In entering the third milleniums,
the Badak LNG plant has developed and able to produce the biggest LNG
production in the world. Up to December 13, 2001, Badak LNG plant had shipped
the 4500 LNG and the 5000 shipment projection would be in the second quarter of
2003. The LNG plant also has ability to handle 3 shipment at the same time, by
completing the 3rd loading pier at the end of 1999, which was built to
anticipate the increasing shipment frequency in the future, as it is expecting
to be able to maintain the service level to LNG buyer.
The natural gas reserve to produce LNG is still sufficient to serve
buyers in long term under a contract and assurance of shipment. To maintain
buyers confidence for gas reserve quantity, a 42” pipe line is added. Four
parallel pipelines which able to ship 3600 million cubic feet (MMFSD) natural
gas to the plant for further process. Finally, Badak LNG plant become one of
LNG plants with great experience in the world LNG industry, and become a vital
asset for Indonesian LNG business chain. With all abilities, and experience of
more than 35 years in producing LNG, PT Badak NGL ready to face any challenge
in the 21st century, with strong and continuous support from all parties
involved in LNG business.
Throughout 2012, PT Badak NGL had eight process trains (from A to H),
with five fully operational, and the remaining three put on idle mode (ready to
be fully operational within 2x24 hours). The total production capacity of the
eight trains was 22.5 million tonnes of LNG per year. In 2012, PT Badak NGL participated
in the LNG Benchmarking Program carried out by Phillip Townsend Associates,
Inc. The program was intended to obtain a comparative review of the performance
of PT Badak NGL in 2011, among eleven LNG sites representing around 76% of the
worldwide LNG production capacity.
Natural gas is a naturally occurring hydrocarbon gas mixture, consisting
primarily of methane, with other hydrocarbons, carbon dioxide, nitrogen and
hydrogen sulfide. Natural gas fields are often located far away from towns and
cities that need it. Transporting gas by pipeline for very long distances and
across sea may require large capital and high operating cost. By cooling the
gas to -160OC, its phase is changed into liquid and its volume is reduced by
1/600 times. Compared to natural gas in the gas phase, Liquefied Natural Gas
(LNG) can then be stored and shipped out more economically and efficiently.
PT Badak NGL processes natural gas to produce three types of products,
namely LNG, LPG and Condensate.
Gas Supply
The natural gas reserve and the volume of LNG produced by the Company
are beyond the authority of PT Badak NGL and instead are the authority of the
Gas Producers. For PT Badak NGL’s internal purposes, the supply of natural gas
for at least a period of five years into the future has been defined in the
2013-2017 Five-Year Business Plan. The decline in gas supply from Muara Badak
is a challenge for the existence of PT Badak NGL as a natural gas operator
which produces LNG and LPG. The termination of the Company’s production should
the gas supply be stopped in 2020 will result in a huge impact, because of PT
Badak NGL’s significant contribution to economic and social development. This
situation will also result in the loss of knowledge and decades of experience
in the field of natural gas processing from the experts currently working at PT
Badak NGL. PT Badak NGL has prepared a consistent and judicious planning in
anticipation of the possibility of gas supply cessation, for up to this point
there has been no new discoveries of gas reserves to be processed in its
production facility.
By the end of 2012 we had had a number of clients that had benefited
from their experience and proficiency in the industry, including Yemen, Angola,
and also Indonesia. It is an honour for us to be contributing directly to the
energy diversification in Indonesia in 2012, which over the last decades have
always been dominated by oil. In 2012, PT Badak NGL successfully shipped the
LNG product to FSRU (Floating Storage Regasification Unit) in Muara Karang,
West Java, to be distributed in domestic market. In the spirit of innovation,
we also launched the first LNG-fueled bus and stove in Indonesia in 2012.
The first shipment of PT Badak NGL’s products was made to five Japanese
companies, namely Chubu Electric Co., Kansai Electric Power Co., Kyushu
Electric Power Co., Nippon Steel Corp., and Osaka Gas Co. Ltd., on 5 December
1973. The sales contract was later known as the “1973 Contract”, consisting of
a commitment from buyers to import LNG from Indonesia for 20 years. PT Badak
NGL has also delivered its products, namely LNG and LPG to many other
countries, such as Taiwan, South Korea, China, India, and the United States.
Throughout 2012, PT Badak NGL had eight process trains (from A to H), with five
fully operational, and the remaining three put on idle mode (ready to be fully
operational within 2x24 hours). The total production capacity of the eight
trains was 22.5 million tonnes of LNG per year.
The outlook for the country's oil and gas sector is becoming
increasingly uncertain. We forecast the long-term decline in total liquids
production and a stagnation of gas production. This is mainly a result of the
slow pace of exploration and development, exacerbated by an increasingly
uncertain regulatory environment as resource nationalism creeps into the
government's policy towards the sector. Opportunities for exports will be
further compromised by the domestic market's increasing energy demand. Hence, falling
oil and gas exports is another key trend we identify for Indonesian oil and
gas. The main trends and developments we highlight for Indonesia's oil and gas
sector are: We forecast that oil and gas reserves will most likely be on a
downward trend in the coming decade: oil reserves are expected to decrease from
an estimate of 4.0 bn barrels (bbl) of oil at the beginning of 2013 to 3.7 bn
bbl in 2017, falling further still to 3.4 bn bbl by 2022. For gas, we expect
reserves levels to be stagnant as addition from exploration successes in East
Kalimantan cancels out natural depletion from existing fields. Reserves are
forecast to fall from 3.07 tcm in 2013 to 2.80 tcm in 2017, and fall further to
2.51 tcm unless the pace of drilling activity picks up.
The oil and gas industry makes a huge contribution to the Indonesian
economy, providing energy and products that stimulate economic and social
development. In addition to their core products and services, oil and gas
companies and associated service industries also contribute to economic
development by building capacity, using and developing local content, providing
employment, investing in training and education, and introducing new
technologies.
Investor interest in exploration and production in Indonesia remains
high, and there have been significant increases in new Production Sharing
Contracts and in the number of new projects currently underway and or being
planned. Current hydrocarbon reserves in Indonesia's tertiary sedimentary
basins are estimated at 8,4 billion barrels of oil and 164,9 trillion cubic
feet of gas.
Until this time P.T. BADAK NGL has not been registered with Indonesian
Stock Exchange, so that they had not obliged to announce their financial
statement. The management of P.T. BADAK NGL is very
reclusive towards outsiders and rejected to disclose its financial condition.
We estimated that total sales turnover of the company in 2011 amounted to Rp.
35,000.0 billion rose to Rp. 38,200.0 billion in 2012 increased to Rp. 41,000.0
billion in 2013 and projected to go on rising by at least 6% in 2014. The
operation in 2013 yielded an estimated net profit of at least Rp. 2,870.0
billion and the company has an estimated total networth of at least Rp. 3,500.0
billion. We observe that the company is supported by foreign partner with has
financially strong and sound behind it. 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. BADAK NGL is headed by Mr. Ir. Nanang Untung (56)
a professional manager with experienced in liquefaction natural gas processing.
Nearly 30 years he has traveled the world in gas industry. Graduated from ITB
chemical engineering in 1982, Nanang worked for 14 years at P.T. Arun NGL.
Various positions ranging from process engineer to technical coordinator he's
ever shake Arun, his career continued increase in 1996 Pertamina. Nana involved
in several projects such as Pertamina, Exxon Natuna Project as a facilities
engineer, train Bontang LNG H & I Project Engineering Manager as well as
Gas Development Project Matindok as Business Development Manager. Nanang also
briefly held the position of SVP Gas & Power Pertamina period 2010-2012
before being appointed as CEO of P.T. Badak NGL.
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. P.T. BADAK NATURAL GAS LIQUEFACTION is sufficiently fairly good for
business transaction.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.10 |
|
UK Pound |
1 |
Rs.102.04 |
|
Euro |
1 |
Rs.80.74 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
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|
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|
Report Prepared
by : |
MNL |
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.