Saudi Arabia Yanbu refinery resumes operations after maintenance

MOSCOW (MRC) -- Saudi Aramco has restarted its Red Sea Yanbu refinery, which it owns with Exxon Mobil after nearly two months of maintenance to bring a new clean fuel project online and the plant will reach its full capacity this week, reported Hydrocarbonprocessing with reference to two people familiar with the matter.

The refinery, which is operated by SAMREF, has a capacity of about 400 Mbpd of Saudi Arabian crude oil, half of which is consumed domestically, but will only reach that level in a few days.

During maintenance, which started in March, SAMREF boosted the reliability of the fluid catalytic cracker, which helps turn crude oil into gasoline, and upgraded the refinery to produce cleaner fuels. The clean fuels project is expected to reduce sulfur levels by more than 98% in gasoline in 2013 and in diesel by 2016.

We remind that, as MRC wrote previously, in early 2012, Saudi Aramco signed a joint venture agreement with China’s state-owned oil refiner, Sinopec, to build a 400,000 bbl/day refinery in Yanbu on the kingdom's Red Sea coast. The project, named Yanbu Aramco Sinopec Refining (YASREF), will begin production in the second half of 2014.

Saudi Aramco, officially the Saudi Arabian Oil Company, is a Saudi Arabian national oil and natural gas company based in Dhahran, Saudi Arabia. Saudi Aramco was estimated to be the world's most valuable company. It is the largest oil company in the world due to having the largest proven oil reserves, about 260 billion barrels, and the highest production, 10 million barrels per day. Saudi Aramco owns and operates four refineries serving the local market, with a combined refining capacity of 1 MMbpd. The firm also has a 50% interest in SAMREF and in SATORP, a joint venture with Total, which will also produce cleaner fuels.
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MOSCOW (MRC) -- Autoneum is increasing its local presence in Mexico by building an additional facility through UGN. The new plant in Silao is expected to start production of parts for Japanese car manufacturers towards the end of the year, said the producer in its press release.

Mexico has become an attractive production location for car manufacturers. To support the expansion initiatives of Japanese customers in this region, Autoneum is increasing its local presence together with its Japanese partner Nittoku by building a new UGN facility in Silao, Mexico. Silao is located in the state of Guanajuato about 220 miles (350 kilometers) northwest of Mexico City. Production of acoustic and thermal management components in the 60,000 square foot facility is slated to begin towards the end of the year.

Autoneum is already present in Mexico with a facility in Hermosillo, which mainly supplies parts to US car manufacturers. The expansion of Autoneum’s local presence in Mexico is an answer to the growing demand in the automotive industry with North American production expected to grow to 17 million vehicles per year by 2016.

Autoneum is increasing its local presence in Mexico by building an additional facility through acoustic, interior trim and thermal management product manufacturer, UGN.

The new plant in Silao is expected to start production of parts for Japanese car manufacturers towards the end of the year.

Autoneum is already present in Mexico with a facility in Hermosillo, which mainly supplies parts to US vehicle manufacturers.

As mRC wrote earlier, Autoneum, a Swiss thermal and acoustic nonwovens insulation company, is boosting its local presence with a production plant in Russia.

Starting in the fall of 2013, Autoneum will be producing acoustic and thermal components in Ryazan for the growing Russian automobile market.
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MOSCOW (MRC) -- Two of Europe’s biggest chemical companies have agreed a joint venture that will create one of the world’s largest producers of PVC plastics by revenues, said Financial Times.

Solvay, the Franco-Belgian chemicals company, will pool its European business that creates chlorvinyls – the base materials for PVC plastics – with that of privately owned rival Ineos Group , in a move that will eventually result in the Anglo-Swiss company taking full control of the joint venture.

Ineos operates chemicals facilities across the UK and is the country’s second largest private company measured by sales behind Alliance Boots, according to data from BDO, the professional services group.

Should the deal gain regulatory approval from the European Commission, the joint venture is expected to report annual recurring earnings before interest, tax amortisation and depreciation of about EUR260m from revenues of EUR4.3bn.

The 50-50 joint venture will allow Solvay to exit the market for PVC – plastics used in the manufacture of construction products such as pipes and window frames – which has suffered during the downturn on the back of waning demand from the building industry.

Within four to six years, Ineos will buy out Solvay’s half share for 5.5 times the combined group’s average annual ebitda – equating to a price of more than EUR1bn.

Solvay will contribute its vinyl activities and its Chlor Chemicals business, comprising seven production sites in Europe, while Kerling, an Ineos subsidiary, has offered up its chlorvinyls and related businesses.

The joint venture will employ 5,650 staff across nine European countries, including the UK, Belgium, France and Italy. Should the deal gain regulatory approval, Ineos will pay Solvay EUR250m in cash as a down payment for its 50% stake.

Solvay’s exit from PVC production will allow the Franco-Belgian company to hone its focus on its more profitable businesses, such as high-tech polymers for the healthcare and oil and gas industries.

The joint venture is expected to benefit from cost savings in the groups’ head office, marketing, transport and logistics operations. However, both Solvay and Ineos did not define the amount of synergies they expected.

As MRC wrote earlier, Ineos said it has signed an agreement to secure ethane from the US that it will use as a feedstock to operate its steam crackers in Europe. It has agreed a long-term deal with Range Resources Corp. for the lifting of ethane from the Marcus Hook facility, located near Philadelphia, from 2015.
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MOSCOW (MRC) -- State-owned Petrovietnam and Talisman Energy Inc. are expected to start commercial oil production from Hai Su Trang field offshore Vietnam next week, as per The Wall Street Journal.

The field in Block 15-2/01, more than 100 kilometers south of Ba Ria Vung Tau province, is operated by Thang Long Joint Operating Co., in which Talisman holds a 60% stake and Petrovietnam 40%.

Petrovietnam earlier said Hai Su Trang had an oil flow of 15,000 barrels a day.

Petrovietnam said in a statement Monday that Talisman seeks to expand its oil and gas operations in Vietnam as well as other countries to meet Vietnam's rising demand for fuels, especially natural gas.

The statement came after a meeting between Petrovietnam CEO Do Van Hau and Talisman CEO Harold N. Kvisle in Canada over the weekend.

Earlier this year, Petrovietnam has been told by the government to scrap plans to expand capacity at its Dung Quat refinery. However, the 130,000-bpd refinery will be upgraded.

We remind that, as MRC informed previously, in October last year, the compamy announced that it was going to construct the second oil refinery in the country. The refinery could cost USD8-10 billion. The petrochemical complex in Vietnam's Nghi Son Economic Zone will include a 200,000-b/d refinery, as well as the production of polypropylene (PP) and aromatics.
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MOSCOW (MRC) -- Chevron Corp.'s first-quarter earnings dropped 4.5% as revenue fell short of Wall Street estimates and both the upstream and downstream segments posted lower profits, reported The Wall Street Journal.

Chevron and other oil and gas producers have seen their results pressured by a drop in oil prices brought about by tepid global economies and a surge in U.S. production.

Chevron, the second-largest U.S. oil company by market value after Exxon Mobil Corp., had warned earlier this month that its U.S. and international production declined in the first two months of the year, compared with the previous quarter, partly due to maintenance activity.

Chevron reported a profit of USD6.18 billion, or USD3.18 a share, down from USD6.47 billion, or USD3.27 a share, a year earlier. The company said the most-recent quarter included net charges of USD439 million, compared with USD504 million a year ago.

Revenue declined 6.4% to USD56.82 billion.

Analysts polled by Thomson Reuters had most recently forecast earnings of USD3.08 a share on revenue of USD67.73 billion.

Operating margin fell to 18.1% from 19.9%.

Exploration-and-production earnings fell 4.1% to USD5.92 billion. Total oil-equivalent production edged up 0.8% to 2.65 million barrels per day as project ramp-ups in the U.S. and Nigeria were largely offset by normal field declines, Chevron said.

The refining, marketing and chemical operations, known as the downstream segment, saw its profit drop 13% to USD701 million.

We remind that, as MRC wrote previously, since March Chevron has been in talks with potential buyers for Canada's first exports of liquefied natural gas, paving the way for a USD15 billion project that would open up a new route for North American gas to Asia.

Chevron Corporation is an American multinational energy corporation headquartered in San Ramon, California, United States, and active in more than 180 countries. It is engaged in every aspect of the oil, gas, and geothermal energy industries, including exploration and production; refining, marketing and transport; chemicals manufacturing and sales; and power generation. Chevron is one of the world's six "supermajor" oil companies.
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