Outline - Ghalib - Part 1 - Profile Oman LNG LLC is a joint...

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Part 1 - Profile Oman LNG LLC is a joint venture company which brings together the best possible mix of assets and skills from all over the world for the mutual benefit of Oman and the company’s shareholders. Established by a Royal Decree in 1994, Oman LNG LLC produces and sells Liquefied Natural Gas (LNG) and by-product Natural Gas Liquids (NGLs). The Company undertakes activities necessary to liquefy, store, transport and market Oman’s natural gas and to deliver LNG to international customers. Currently, the extent of the Company’s operations is a two-train liquefaction plant with a nameplate capacity of 6.6 Mt pa at Qalhat, near the town of Sur in the Sharqiya (Eastern) region of Oman. Sur, like various other key regions of the Sultanate, was deemed by His Majesty as a target for economic redevelopment, not just because of its natural assets such as a deep natural harbour but to revive what was once a thriving port with a bustling maritime economy. Ownership is divided between the Government of the Sultanate of Oman (51%), Royal Dutch/Shell Group (30%), Total (5.54%), KOLNG (5%), Partex (2%), Mitsubishi (2.77%), Mitsui (2.77%) and Itochu (0.92%). Management The company is having very qualified management with equal representation from its shareholders on the board of director’s viz. Shell International, Total, Mistubishi and Mitsui & Co Limited.
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Financials The company financial performance for the last three is as given below FY 2010 2009 2008 Sales EBITDA PAT Net-worth Part 2 - Description of firm's budgeting process Classification of capital expenditure Capex is defined as all costs directly incurred in the acquisition of, or addition, extension, major renewal or replacement of a fixed asset. An identifiable asset is defined as an item or related group of items whose cost is significant and has a useful life of more than one year. Some examples are mentioned below: Buildings and Civil works Plant and equipment Leased housing complex Furniture, Fixtures and Office equipment and Computer equipment Cars, trucks, trains, trailers, cranes Laboratory and medical equipment, The company has a threshold of US$2,500 is established for operational expenditures. For capital expenditure, a threshold above US$2,500 applies. For software costs the capitalization
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threshold shall be US$50,000.00. Items acquired or constructed at a cost below this threshold should be budgeted under opex and charged direct to expense as incurred. Control policy This procedure ensures that following control procedures are adhered to in implementing a capital expenditure plan all investment proposals are business based; all investment proposals are properly and realistically costed; all capex expenditures are covered in the approved budget and approved on a yearly basis
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This note was uploaded on 12/04/2011 for the course ECONOMICS 201 taught by Professor Rcollier during the Spring '10 term at Portland CC.

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Outline - Ghalib - Part 1 - Profile Oman LNG LLC is a joint...

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