MIRA INFORM REPORT

 

 

Report Date :

28.06.2014

 

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) :

31.12.2012

 

 

Date of Incorporation :

August, 1974

 

 

Legal Form :

Government Corporation

 

 

Line of Business :

Subject 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.

 

 

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 – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Qatar

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 

 

QATAR - ECONOMIC OVERVIEW

 

Qatar has prospered in the last several years with continued high real GDP growth. Throughout the financial crisis Qatari authorities sought to protect the local banking sector, with direct investments into domestic banks. GDP is driven largely by changes in oil prices and by investment in the energy 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 50% of government revenues. Oil and gas have made Qatar the world's highest per-capita income country and the country with the lowest unemployment. Proved oil reserves in excess of 25 billion barrels should enable continued output at current levels for about 57 years. Qatar's proved reserves of natural gas exceed 25 trillion cubic meters, about 13% of the world total and third largest in the world. Qatar's successful 2022 World Cup bid is accelerating large-scale infrastructure projects such as Qatar's metro system, light rail system, the construction of a new port, roads, stadiums and related sporting infrastructure. The new Hamad International Airport is expected to open in mid-2014 with an annual passenger capacity of 24 million on initial opening and 50 million when complete.

 

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                                                     31/12/12              31/12/11             31/12/10

 

Assets

Non-current assets

Property, plant and equipment                                                   259,255,604      251,432,753      236,823,950

Deferred expenditure                                                                 2,888,494          1,456,009          1,169,989

Investments                                                                              6,444,858          5,954,372          5,113,266

Other long term assets                                                              2,267,318          1,818,910          9,316,475

Investment properties                                                                148,033 133,230 136,190

                                                                                                271,004,307      260,795,274      252,559,870

 

Current assets

Cash                                                                                         43,702,383        49,009,188        29,164,556

Debtors and prepayments                                                         28,452,118        22,073,950        18,866,963

Inventories                                                                                11,832,459        11,382,057        8,305,220

                                                                                                139,396,737      24,290,980        -

Total assets                                                                              494,388,004      367,551,449      308,896,609

 

Equity and liabilities

Capital and reserves

Capital                                                                                      100,000,000      100,000,000      50,000,000

Retained earnings                                                                      122,742,936      17,115,711        12,150,989

Other reserves                                                                           99,780,948        91,901,442        50,238,213

                                                                                                322,523,884      209,017,153      112,389,202

Minority interest                                                                         15,577,934        9,291,692          7,585,013

Total equity                                                                               338,101,818      218,308,845      119,974,215

 

Non-current liabilities

Loans                                                                                       77,379,560        73,892,979        74,353,885

Obligations under finance lease                                                 35,224,177        34,675,621        36,652,227

Provision for employees’ end of service benefits                                    1,358,663          1,232,627          1,120,269

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

Deferred income taxes                                                              4,615,271          3,653,316          2,895,218

Other liabilities                                                                          1,641,289          1,767,891          1,533,131

                                                                                                120,218,960      115,222,434      164,384,244

Current liabilities

Creditors and accruals                                                               29,184,033        26,614,456        18,763,912

Loans                                                                                       6,883,193          7,405,714          5,774,238

                                                                                                36,067,226        34,020,170        24,538,150

Total liabilities                                                                           156,286,186      149,242,604      188,922,394

Total equity and liabilities                                                           494,388,004      367,551,449      308,896,609

 

Consolidated Income Statement

 

Sales                                                                                        330,328,819      289,179,187      188,015,060

Other operating income                                                             30,531,032        11,163,144        9,278,989

Total operating revenue                                                             360,859,851      300,342,331      197,294,049

 

Operating expenses

Operating, selling and administrative expenses                           (42,317,703)      (33,480,273)      (27,351,817)

Depreciation and amortisation                                                    (12,977,185)      (11,943,245)      (10,126,644)

Total operating expenses                                                           (55,294,888)      (45,423,518)      (37,478,461)

 

Net operating income                                                                305,564,963      254,918,813      159,815,588

Dividend and interest income                                                     1,245,737          682,692 806,143

Finance charges                                                                        (5,778,947)        (5,911,405)        (5,627,944)

 

Income before royalties, taxes and minority interests                  301,031,753      249,690,100      154,993,787

Royalties                                                                                  (74,022,229)      (62,075,002)      (33,921,038)

Taxes                                                                                       (109,470,887)    (96,432,312)      (64,648,584)

Income before minority interests                                                            117,538,637      91,182,786        56,424,165

Minority interests                                                                       (3,401,471)        (2,320,551)        (1,857,429)

Net income for the year                                                             114,137,166      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.60.10

UK Pound

1

Rs.102.40

Euro

1

Rs.81.88

 

INFORMATION DETAILS

 

Analysis Done by :

SUM

 

 

Report Prepared by :

NNA

 

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.