OREANDA-NEWS. RusRating has assigned a credit rating of “BB+” (international scale with a stable outlook) to Azen Oil Company B.V. (the Netherlands).

According to the agency, the rating is based on a low debt burden, strong operating margin, high return on investor capital, solid operating cash flow and the potential for financial support from the Company's beneficiary owners.

Constraining factors include the Company's relatively modest size and a business concentrated in a single industry.

Azen Oil Company is a Netherlands-registered firm controlled by GEA Holding Limited (BVI). The Company has signed a production-sharing agreement with the government of Azerbaijan and the State Oil Company of Azerbaijan to develop the Binagadi block, which includes the Binagadi, Girmaki, Chakhnaglar, Sulutepe, Masazyr, Fatmai, Shabandag and Syanshor fields; the agreement gives Azen Oil a 75% share of output. Azen is affiliated with Global Energy Azerbaijan Limited, which is registered in the UK Virgin Islands and via its subsidiaries operates the Binagadi block, with 132 million tonnes of oil in geological reserves, of which 12.8 million tonnes are recoverable. Daily production is 357 tonnes.

The Company's debt burden is low and its operating margin high, as is the return on investor capital. The balance sheet is dominated by fixed assets (oil wells and associated equipment). Risk sensitivity is low. Liquidity is sufficient.