Rosneft may get up to 30 percent in ExxonMobil's projects

(RIA Novosti) -- Russia's top oil producer Rosneft may get up to 30 percent in ExxonMobil's projects as part of a USD 3.2 billion agreement signed in August, Glenn Waller, head of Exxon Mobil Russia, said on Tuesday. Rosneft had to decide on its share in Exxon Mobil's projects at the beginning of 2012, Waller told journalists. Igor Sechin, Deputy Prime Minister in charge of energy, has said Rosneft would get a share in no less than six of Exxon Mobil's projects in the U.S.

The deal between Rosneft and Exxon is aimed at exploring the East Prinovozemelsky Blocks 1, 2 and 3 in the Kara Sea in the Russian Arctic and the Tuapse License Block in the Black Sea. The deal also presupposed Rosneft's participation in Exxon Mobil's turf in the United States, particularly the Gulf of Mexico and Texas, as well as in third countries.

The pact gives Exxon, which already works with Rosneft on the Sakhalin-1 offshore project in Russia's Far East, access to substantial reserves in Russia, the world's top oil producer, while Rosneft, which was in search of a partner to provide it with shelf technologies it lacks.

MRC

(RIA Novosti) -- British oil major BP has put on hold a key hi-tech project worth 6.7 million pounds (USD 8 million) in Skolkovo near Moscow over fears that it may be accused of breaching a shareholder agreement with its Russian venture TNK-BP, Kommersant business paper reported on Wednesday.

In spring, the AAR consortium, which represents BP's Russian partners in TNK-BP blocked a USD 16 billion share swap and Arctic shelf development deal between the British oil giant and Russia's top oil producer Rosneft, saying the pact broke TNK-BP's 2008 shareholder agreement, under which all energy projects must be offered to TNK-BP first.

BP was expected to finance the Skolkovo project on a parity basis with the Skolkovo fund, headed by TNK-BP co-owner and billionaire shareholder Viktor Vekselberg, but at the last moment refused to sign the deal. The firm cited the same shareholder agreement with TNK-BP, an instrument previously used by the joint venture's Russian shareholders to block BP's deal with Rosneft, the paper said.

A source close to Skolkovo said BP's behavior was irrational because the British oil major's investment in the hi-tech R&D project was not the subject of the TNK-BP shareholder agreement.


MRC

(Plastemart) -- Celanese Corporation, a global technology and specialty materials company and a global leader in high performance engineering plastics, announced the opening of its state-of-the art polyoxymethylene (POM) production facility in Frankfurt Hoechst Industrial Park, Germany. With a nameplate capacity of 140 KTa, Celanese's new POM plant will be the world's largest and strengthens the company's Ticona engineering polymers business, including its global operations and advanced technical capabilities. The new manufacturing facility is expected to meet the increased global demand for innovative specialty solutions in polymer-based products.

MRC

(Plastemart) -- Hindustan Petroleum Corp. has invited bids to conduct a feasibility study for a refinery and petrochemical project at Visakhapatnam in southern India. The last date to submit tenders for the contract is Nov. 15. The state run oil major is reviving the Visakhapatnam project which was stalled earlier as its partners had pulled out due to the global economic slowdown in 2008-09.

The Visakhapatnam project was initially planned as a joint venture by Hindustan Petroleum, Mittal Energy Investments, France's Total SA, GAIL (India) Ltd. and Oil India Ltd. It was projected to have an export-oriented refinery with a capacity of 280,000-300,000 bpd and a petrochemical plant of at least 1 mln tons of annual capacity. GAIL and Oil India are still interested in the project and is also in talks to Mittal Energy and Total.

MRC

(ICIS) -- Chemical companies must adapt their business models to the reality of the New Normal of permanent lower growth and an increasingly volatile macroeconomic environment, a leading consultant said on Monday. A growing elderly population in mature economies has far-reaching consequences for the level and type of demand growth for chemicals, according to International eChem chairman Paul Hodges. Planning for the uncertainties of this new macroeconomic environment is vital, he believes.

He claims that by 2020 an unprecedented 33% of the developed world's population will be over 55 years old. This is thanks to the ageing of the huge post-war ⌠Baby Boomer generation. Older people typically spend less and save more. ⌠Companies need to get to grips with trends such as the ageing population, greater food production and increased water quality and availability. The core market for companies operating in the west will not be the high end of people with lots of money to spend but those on pensions of USD 10,000-15,000 a year [EUR 7,400-11,100 a year].

He said companies which still operate on a model which assumes a high level of spending are already losing pricing power and are issuing profit warnings. The financial crisis currently enveloping mature economies in Europe and the US is the result of policy-makers' refusal to plan for the New Normal, said Hodges.

MRC