Page 11 - AsianOil Week 46

AsianOil
NEWS IN BRIEF
AsianOil
SOUTH ASIA
Moody’s assigns Baa1
rating to proposed ONGC
notes
Moody’s Investors Service has assigned a Baa1 rating to the proposed senior unsecured notes to be issued by Oil and Natural Gas Corporation Ltd. (ONGC, Baa1 negative) under its USD2 billion medium-term note (MTN ) program.
The outlook on the rating is negative.
“The notes’ rating is in line with ONGC’s Baa1 issuer rating, which is in turn primarily driven by its standalone credit profile as captured by the company’s baa1,” says Vikas Halan, a Moody’s Senior Vice President.
ONGC’s baa1 Baseline Credit Assessment (BCA) reflects (1) its position as the largest integrated oil and gas company in India with significant reserves, production and crude distillation capacity; (2) its substantial operating cash flow generation capacity; and (3) its solid credit metrics that have improved but remain constrained by volatile; although range boun; oil prices and high shareholder returns.
At the same time, the BCA incorporates Moody’s expectation that the company will not be asked to share fuel subsidies, as long as oil prices stay below $70 per barrel.
ONGC’s issuer rating also incorporates the company’s high likelihood of extraordinary support from and very high dependence on the Government of India (Baa2 negative), in times of need. However, this assumption of government support has not resulted in any ratings uplift, as the sovereign’s rating is below ONGC’s BCA.
Given ONGC’s strong credit metrics and status as a government-owned company, it enjoys strong access to debt capital markets and has substantial financial flexibility through equity stakes in Indian Oil Corporation Ltd (Baa2 negative) and Gail (India) Limited (Baa2 negative), which together were valued at about INR210 billion at 14 November 2019. MOODY’S INVESTORS SERVICE, November 20, 2019
SOUTHEAST ASIA
Mitsui invests in major
gas-fired power plant in
Thailand
Mitsui & Co. today announced the go-ahead for a major new $1.6 billion project to build a gas fired combined cycle power plant in Rayong Province, Thailand.
The go-ahead follows the signing of a project
financing agreement for the 2,500MW plant which will be built, owned and operated by a joint venture between Mitsui (30%) and major Thai private power company Gulf Energy Development Company Limited (70%).
The new plant is expected to start supplying electricity in 2023 under a 25-year long term contract with the Electricity Generating Authority of Thailand. Construction of the plant will begin July 2020.
The Japan Bank for International Cooperation (JBIC) is providing project financing for approximately USD208
million. The loan is co-financed by the Asian Development Bank (ADB), Export-Import Bank of Thailand (EXIM Thailand), Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corporation, Sumitomo Mitsui Trust Bank Limited, DZ Bank, the Oversea-Chinese Banking Corporation Limited and regional banks in Thailand covering approximately USD1.36 billion.
MITSUI & CO., November 18, 2019
PHM extends JDC rig hire
Japan Drilling Co. is currently involved in
a drilling contract (farm 1 year + option 1 year) signed with Pertamina Hulu Mahakam (PHM) under the joint name with a shipping company in Indonesia.
We are engaged in excavation work using the Hakuryu-14 jack-up rig in the Mahakam Block, but the contract period starts from December
5, 2019 when the current farm year ends. This
is to inform you that there has been a notice to exercise the option to extend 1 year.
JAPAN DRILLING CO., November 15, 2019
JDC rig starts work in Vietnam
The Hakuryu-11 jack-up rig began drilling work off Vung Tau off the country on November 19, based on a subcontract with Petro Vietnam Drilling, a state-run drilling company in Vietnam.
JAPAN DRILLING CO., November 19, 2019
OCEANIA
Expro awarded contract
extension with INPEX,
offshore Australia
International oilfield services company Expro has secured a contract extension to supply well test and subsea services for INPEX- operated, Ichthys LNG.
The contract will see Expro continue to
Week 46 20•November•2019
w w w . N E W S B A S E . c o m
P11