MIRA INFORM REPORT

 

 

Report No. :

301381

Report Date :

06.01.2015

 

IDENTIFICATION DETAILS

 

Name :

OCCIDENTAL MUKHAIZNA LLC

 

 

Registered Office :

Al Assalah Towers, Building No. 223A, Block 237 Al Ghubrah South Street No. 1, Way No. 3701 717 Al Sib 130

 

 

Country :

Oman

 

 

Com. Reg. no.;

1/79998/3

 

 

Date of Incorporation :

17.07.2005

 

 

Legal Form :

Limited Liability Company - LLC

 

 

Line of Business :

Exploration, Drilling and Production of Petroleum.

 

 

No. of Employee :

500

 

 

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

 

Status :

Satisfactory

 

 

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

Oman

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

OMAN ECONOMIC OVERVIEW

 

Oman is a middle-income economy that is heavily dependent on dwindling oil resources. Because of declining reserves and a rapidly growing labor force, Muscat has actively pursued a development plan that focuses on diversification, industrialization, and privatization, with the objective of reducing the oil sector's contribution to GDP to 9% by 2020 and creating more jobs to employ the rising numbers of Omanis entering the workforce. Tourism and gas-based industries are key components of the government's diversification strategy. However, increases in social welfare benefits, particularly since the Arab Spring, will challenge the government's ability to effectively balance its budget if oil revenues decline. By using enhanced oil recovery techniques, Oman succeeded in increasing oil production, giving the country more time to diversify, and the increase in global oil prices through 2011 provided the government greater financial resources to invest in non-oil sectors. In 2012, continued surpluses resulting from sustained high oil prices and increased enhanced oil recovery allowed the government to maintain growth in social subsidies and public sector job creation. However, the Sultan made widely reported statements indicating this would not be sustainable, and called for expanded efforts to support SME development and entrepreneurship. Government agencies and large oligarchic group companies heeded his call, announcing new initiatives to spin off non-essential functions to entrepreneurs, incubate new businesses, train and mentor up and coming business people, and provide financing for start-ups. In response to fast growth in household indebtedness, the Central Bank reduced the ceiling on personal interest loans from 8 to 7%, lowered mortgage rates, capped the percentage of consumer loans at 50% of borrower's salaries for personal loans and 60% for housing loans, and limited maximum repayment terms to 10 and 25 years respectively.

 

Source : CIA

SUMMARY

 

Company Name                                                : OCCIDENTAL MUKHAIZNA LLC

Country of Origin                                   : Sultanate of Oman

Legal Form                                           : Limited Liability Company - LLC

Registration Date                                  : 17th July 2005

Commercial Registration Number                       : 1/79998/3

Chamber Membership Number               : 397

Issued Capital                                       : RO 1,500,000

Paid up Capital                                     : RO 1,500,000

Total Workforce                                     : 500

Activities                                               : Exploration, drilling and production of petroleum in Oman

Financial Condition                                : Undetermined

Payments                                             : Nothing detrimental uncovered

 

 

 

COMPANY NAME

 

OCCIDENTAL MUKHAIZNA LLC

 

 

ADDRESS

 

Registered & Physical Address

 

Building                        : Al Assalah Towers, Building No. 223A, Block 237

Street               : Al Ghubrah South Street No. 1, Way No. 3701

Area                 : Athaiba

 

PO Box                        : 717

 

Town                : Al Sib 130

Country             : Oman

 

Telephone         : (968) 24524000 / 24581000

Facsimile          : (968) 24588147

 

Premises

 

Subject operates from a large suite of offices that are rented and located in the Suburban Business Area of Al Sib.

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Glen Vangolem                                                                                 General Manager

 

·       Bill Moss                                                                                          Finance Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 17th July 2005

 

Legal Form                  : Limited Liability Company - LLC

 

Commercial Reg. No.   : 1/79998/3

 

Chamber Member No.  : 397

 

Issued Capital              : RO 1,500,000

 

Paid up Capital            : RO 1,500,000

 

Name of Shareholder (s)                                     Percentage

 

·       Occidental Petroleum Corp                                            45%

10889 Wilshire Boulevard

Los Angeles 90024

United States of America

Tel: (1-310) 2088800

 

·       Oman Oil Corporation SAOC                                          20%

 

·       Shell Oman Trading Field Co Ltd                                    17%

 

·       Liwa Energy Ltd                                                             15%

 

·       Total Exploration and Production Oman                            2%

 

·       Partex (Oman) Corp                                                         1%

 

 

OPERATIONS

 

Activities: Engaged in exploration, drilling and production of petroleum in Oman.

 

Subject’s operations are concentrated at the giant Mukhaizna oil field in south-central Oman, the Safah field in northern Oman, and adjacent areas.

 

     At Mukhaizna, the company has implemented an aggressive drilling and development program, including a

     major pattern steam flood project for enhanced oil recovery. As at the end of 2008, gross daily production

     was over six times higher than the production rate in 2005. Subject plans to steadily increase production

     through continued expansion of the steam flood project. Subject is Oman’s second largest oil producer.

 

The Mukhaizna field, located in Oman’s south central interior, was discovered in 1975 and was brought into production in 2000. By the end of 2008, Occidental had drilled over 370 new wells.

 

Occidental Petroleum Corp’s share of production from the Oman properties was approximately 27,000 BOE per day in 2008 and proved reserves totalled 142 million BOE as of 31st December 2008.

 

Subject has a workforce of approximately 500 employees.

 

 

FINANCIAL DATA

 

Companies registered in Oman are not legally required to make their accounts public and no financial information was released by the company or submitted by outside sources.

 

 

BANKERS

 

·       Commercial Bank of Oman SAOG

Muttrah Business District

PO Box: 1696, Ruwi 112

Muscat

Tel: (968) 24793225 / 24793226 / 24793228

Fax: (968) 24793229

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

Please note that we were unable to contact the subject directly during our investigation.

 

Occidental Petroleum Corp’s registered jurisdiction of incorporation is Delaware, USA. Occidental Mukhaizna LLC is registered in Oman.

 

During the course of this investigation nothing detrimental was uncovered regarding subject’s operating history or the manner in which payments are fulfilled. As such the company is considered to be a fair trade risk.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.39

UK Pound

1

Rs.96.84

Euro

1

Rs.75.67

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

ANK

 

 

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%)

 

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.