LUKOIL to collaborate with Samara oblast

SAMARA (LUKOIL) - LUKOIL President Vagit Alekperov and The Governor of Samara oblast Vladimir Artyakov signed the agreement about collaboration between The Company and oblast.

According to the document, LUKOIL will execute a number of new petrochemicals supplying projects, provide regular fuels and lubricants supply for oblast's agroindustrial complex and wholesale together with retail petrochemicals trading.

LUKOIL will also do constant monitoring of the quality of petrochemicals sold in Samara oblast's territory by its daughter enterprises and control of their conformity to Russian technical standards.

Oblast Administration will provide assistance by giving land for petrochemicals trading objects, by attracting Samara oblast construction complex for The Company's projects realization and in fighting with illegal petrochemicals trading to LUKOIL within its jurisdiction.


Russia LDPE prices roll back in June

MOSCOW (MRC) - To late June prices for low density polyethylene went down by RUB 1.500 - 2.000/mt comparing with the beginning of the month and froze in the range of RUB 57.000 - 59.000/mt - according to MRC Price reports.

As early as in late May a slight deficit in LDPE supply was seen in the Russian market; the prices for 158 PE were in the range of RUB 59.000 - 60.500/mt, including VAT, FCA. In early June Belarusian producers started to increase LDPE exports into the Russian market. Lower price let Belarusian polyethylene compete with Russian producers in Central Federal District, to the end of the month Novopolotsk LDPE appeared in southern Russia. The resume of production at Kazanorgsyntez and Ufaorgsyntez also pushed the prices down.

The increase of LDPE supplies from Belarus and the resume pf PE production at Kazanorgsyntez and Ufaorgsyntez capacities led to stabilization of the situation in the market and the prices rolling back. Current price level for 158 LDPE is in the range of RUB 57.000 - 59.000/mt, including VAT, FCA. Some market players have taken a wait-and-see position hoping for further price fall. At the same time, single market experts tell that current price decrease is a temporary event because of upcoming suspensions for scheduled maintenance of two huge plants in Tomsk and Kazan. The first suspension is expected at Tomskneftechim capacities in mid-June already.


For more information about Russian LDPE market please refer to MRC Price reports.

SIBUR signs agreement with Kemerovo oblast Administration

KEMEROVO (SIBUR) -- Kemerovo oblast governor Aman Tuleev and SIBUR President Dmitriy Konov inked the agreement about social-economic collaboration in 2010.

According to the document, SIBUR is going to continue the realization of complex Kemerovo Azot environment purification program. The Company plans to invest over 500 mln. roubles for these purposes. In particular, the development of new methods of manufacturing water disinfection, silos reclamation, siftings removal and sterilization, additional ecological monitoring and staff training.

Besides that, the Company will actively improve industrial security and labour protection system, investing over 600 mln. roubles in terms of Azot work. The agreement also means SIBUR's help to provide local farmers with mineral fertilizers on preferential terms.

MRC Reference

Sibur Holding is the largest Russian petrochemical group.

Gazprombank (70% minus 1 share);
Gazfond (25% plus 1 share);
5% reserved for option program.

LUKOIL and BP discuss collaboration prospects

(LUKOIL) -- On June 28 in Moscow headquarters LUKOIL President Vagit Alekperov and BP CEO Tony Hayward discussed the prospects of possible collaboration of the companies in Russian territory and beyond its borders.

Besides that, special attention was paid to the accident in oil platform in The Gulf of Mexico.

According to Alekperov, the experience gained by BP in the process of liquidation of the accident and its results must become the property of international oil community for preventing such accidents in the future.


Borouge officially signs 3 expansion contracts in Ruwais

(plastemart) -- Borouge has formally signed three major Engineering, Procurement and Construction (EPC) contracts valued at approximately US$2.6 bln for its Borouge 3 strategic expansion in Ruwais, Abu Dhabi. The contracts were signed between Borouge and Tecnimont, Samsung Engineering, and Hyundai Engineering and Construction. The first contract worth US$1255 bln for the construction of two Borstar enhanced polyethylene and two Borstar enhanced polypropylene units, as well as the second contract worth US$400 mln for the construction of a 350,000 tpa low density polyethylene (LDPE) unit, were signed with the Joint Venture consortium Maire Tecnimont of Italy and Samsung Engineering of South Korea, on a lump sum turnkey basis. The annual capacity of the new polyethylene units is 1,080,000 tpa and the new polypropylene units is 960,000 tpa. A third contract worth US$935 mln for the utilities and off-site facilities for the expanded plant were signed with Hyundai Engineering and Construction of South Korea. These significant investments will quadruple Borouge's production capacity to over 4.5 mln tpa 2013, making it the largest integrated polyolefins site in the world.

MRCMRC Reference

Borealis. The share in the Russian market in 2008:

polyethylene - 4.1% (including HDPE - 4.7%, LLDPE - 8.7%);
polypropylene - 3.2% (PP-impact - 7.5%).

Annual sales growth in Russia over the last 5 years:
polyethylene - 11%;
polypropylene - 6%.

Leader in polymers processing technologies:
extrusion coating;
cable extrusion;
injection molding