Lukoil to boost spending at Iraq oil field to USD2 billion in 2012

(bloomberg) -- OAO Lukoil (LKOH), Russia's biggest non- state company by market value, plans to boost investments in the West Qurna-2 oil field in Iraq to about USD2 billion this year.

Lukoil plans to carry out drilling and begin construction of a pipeline as it prepares the field for the start of production, the Moscow-based crude producer said in a corporate newsletter published on the website today.
The company invested more than USD200 million in the project last year, Grigory Volchek, a Moscow-based spokesman for the company's overseas unit, said by phone today.

Iraq approved the sale of Statoil ASA (STL)'s 18.75 percent in the field to Lukoil, Oil Minister Abdul Kareem al-Luaibi said March 7. Lukoil and Norway's state-controlled Statoil won the rights to develop the second phase of the West Qurna field in December 2009, agreeing to produce 1.8 million barrels a day from the field in southern Iraq about 40 miles (65 kilometers) northwest of Basra, for a fee of USD1.15 a barrel.
Volchek declined to comment on any agreement with Statoil.
MRC

Russia reduced HDPE production by 15%

MOSCOW (MRC) -- In February the Russian producers reduced HDPE production by 15% to 57,400 tons. Over the two months, overall output of HDPE made about 125,000 tons, according to MRC ScanPlast.


Last month the Russian producers made about 57,400 of HDPE that was by 15% lower than in January. Reduction of production was stipulated by decreased utilities capacities at Kazanorgsyntez and Gazprom neftekhim Salavat. Nizhnekamskneftekhim kept January level of capacities in February.

In last winter month Russian producers focused on output of blow-molding and pipe HDPE. Production of film PE significantly fell because of January inventories and a low demand.


Over the first two months of the year, a seasonal factor and record level of utilities capacities at Kazanorgsyntez and Nizhnekamskneftekhim leveled suspension of Stavrolen - the second biggest HDPE producer in Russia.

Over the two months, overall production of HDPE in Russia made about 125,000 tons that was by 55% less compared to the same period last year. Such a serious reduction was caused by suspension of Stavrolen. On the contrary, Kazanorgsyntez and Nizhnekamskneftekhim increased production this year by 35% and 39%, respectively.


MRC

APPE creates new Polish packaging subsidiary

(polyestertime) -- APPE, the packaging division of La Seda de Barcelona, has created a new company in Poland to serve the eastern European markets.

The company has invested EUR15m in APPE Polska, which will manufacture preforms and bottles using technologies such as Heat Set and DeepGrip. "We believe that Poland has excellent development potential that ideally matches our own substantial long-term expansion plans," managing director, Martin Hargreaves said in a statement.

"This is part of our continuing strategy to move our business forward." APPE says the subsidiary, which is scheduled to open later this year, has already secured two major new contracts with leading companies.


MRC

Kronos Worlwide announces a price increase for all titanium dioxide products sold in Europe

(reuters) -- Kronos Worldwide, Inc. announced a price increase for all titanium dioxide products sold in Western Europe, Eastern Europe and Turkey.

Effective April 1, 2012, or as permitted by contract, prices for all KronosR titanium dioxide products sold in Western Europe and Turkey will be increased by a minimum of EUR175 per metric ton (or equivalent in other currencies).

In the US dollar markets of Eastern Europe the price increase will be USD225 per metric ton. This increase is in addition to the increases previously announced.

Kronos Worldwide, Inc. is a major international producer of titanium dioxide products.


MRC

Petrobras CEO pegs 2012 oil price at USD100/bbl, says high levels won't last

(hydrocarbonprocessing) -- The recent rise in global oil prices to as high as USD123/bbl represented a "peak" and does not change Brazil's forecast for average prices in 2012 of USD100/bbl, said Petrobras' CEO. According to Petrobras economists, oil prices could fall even lower "in the next few years," reaching USD80 or USD90/bbl.

The recent rise in global oil prices to as high as USD123/bbl represented a "peak" and does not change Brazil's forecast for average prices in 2012 of USD100/bbl, Maria das Gracas Foster, chief executive of state-run energy company Petrobras.

"We don't believe that this recent high level of oil prices is going to hold," she told the Globo television network. "The trend is for prices to fall as geopolitical pressures in oil-producing countries diminish through the course of the year."


She said that, according to Petrobras economists, oil prices could fall even lower "in the next few years," reaching USD80 or USD90 a barrel.

Foster denied any plans by Petrobras to raise domestic fuel prices, saying the company "operates on the basis of long-term trends."
MRC