INEOS Styrenics is to close EPS plant at its Marl facility at the end of 2013

MOSCOW (MRC) -- INEOS has today announced its intention to close production of Expandable Polystyrene (EPS) at its Marl site in Germany, at the end of Q4 2013, said the producer.

Discussions will now begin with employees and the Works Council to find alternative roles for the 65 people affected by this decision.

Expandable Polystyrene is mainly used in the insulation of buildings. As the European construction sector has suffered from adverse economic conditions, demand for EPS products has reduced.

Operating costs of the EPS plant have also been affected by the recent closure of the styrene monomer and polystyrene units at Marl. The loss of the styrene monomer and polystyrene units removed a number of operating synergies at the Marl site which left the EPS unit with an unsustainable fixed cost base and a weaker styrene monomer supply position.

The decision to close the Marl EPS plant follows a full and detailed review of the EPS business, which has highlighted the need for INEOS Styrenics to optimise its production capacity across its three remaining facilities. This will improve the cost efficiency of its business, as it continues to meet its customer needs in a highly competitive European market.

INEOS Styrenics remains committed to our EPS business. Following the closure of the Marl unit, it will continue to be one of the largest producers of EPS in Europe with 350 ktpa total capacity. From the end of the year it will supply high quality EPS products from production sites in Breda (The Netherlands), Ribecourt (France) and Wingles (France).

As MRC wrote before, Ineos formed PVC joint venture with Solvay. 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. 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.
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Phillips 66 to sell Irish oil refinery

Phillips 66 to sell Irish oil refinery

http://online.wsj.com/article/BT-CO-20130611-706962.html?mod=googlenews_wsj

MOSCOW (MRC) -- Phillips 66 (PSX) is selling its business in Ireland, including the 71,000 barrel-a-day Whitegate refinery in Cork, the company said Tuesday, according to Upstreamonline.

Rich Johnson, a spokesman for the U.S. refiner, said in a statement that Phillips 66 has retained Deutsche Bank to market the Ireland assets, which include Ireland's sole oil refinery, its associated wholesale marketing business, and a storage terminal for crude oil and refined products in Bantry Bay.

"Phillips 66 intends to continue operating the assets as usual during the marketing process, which is expected to last for several months," Mr. Johnson said.

Most of Phillips 66's refining capacity is in the U.S. and the company has been focused on growing returns there, aided by access to the country's booming output of inexpensive crude oil from shale formations.

Earlier this year, Larry Ziemba, Phillips 66's executive vice president for refining, project development and procurement, told analysts that the company would be open to selling the Whitegate facility, saying that the refinery is "not sophisticated" and not central to the company's strategy.

At the time Mr. Ziemba also said Phillips 66 would also consider selling its stakes in refineries in Malaysia and Germany. Mr. Johnson said Tuesday that the company is not currently marketing any other assets for sale.

Phillips 66 is a holding company created through the repositioning of ConocoPhillips. The company is engaged in producing natural gas liquids and petrochemicals. Phillips 66 owns 15 refineries with a net crude oil capacity of 2.2 million barrels per day, 10,000 branded marketing outlets, and 15,000 miles (24,000 km) of pipelines. In the United States, the company operates Conoco, Phillips 66 and 76 stations.
MRC

Lukoil nets more African acreage

MOSCOW (MRC) -- Russian oil company takes large slice of single block off West Africa from private player
Russia’s Lukoil has farmed into an exploration block off West Africa after buying a significant stake from a private regional player, said Upstreamonline.

The company has taken a 65% position in Block CI-504 off Ivory Coast from Nigerian downstream outfit Taleveras Energy.

Taleveras, which is also involved in the power and construction sectors, is to retain a 25% stake with state player Petroci holding onto 10%.

Lukoil said the 399-square-kilometre block, situated in water depths of between 800 metres and 2100 metres, is located close to the producing Baobab field. It borders Block CI-205 which is already operated by the Russian.

There is a three-phase committed work programme which calls for interpretation of existing 2D and 3D seismic as well as shooting new 3D seismic. The second and third phases run for a combined five years and will see the drilling of two wildcats.

Taleveras finalised its acquisition of Block CI-504 in April last year, along with blocks 501 and 523. In partnership with ellow Nigerian energy combine Sahara Energy Fields, it agreed to collaborate with Petroci on the blocks.

Taleveras Group also acquired Nigerian deep-water licence OPL 288, awarded in 2005.

As MRC wrote before, Lukoil and an ExxonMobil-led group including Shell, Petrom and Nadra Ukrainy have reportedly bid for offshore acreage in Ukraine"s Skifska field in the Black Sea. The Skifska field purportedly has a potential yield of 3 billion to 4 billion cubic metres. As part of its energy strategy, in May Ukraine picked Shell and Chevron as partners in projects to explore and develop two potentially large shale gas fields at Yuzivska and Olesska respectively.

MRC

GCC petrochemical output rises 5.5% in 2012: GPCA

MOSCOW (MRC) -- The petrochemical production by the six-member Gulf Cooperation Council (GCC) comprising of Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain, and Oman has risen by 5.5% in 2012, according to the Annual Report released by the Gulf Petrochemicals and Chemicals Association (GPCA), said Fibre2fashion.

According to the report, GCC’s petrochemical production increased from 121.1 million tons in 2011 to 127.8 million tons in 2012, showing a rise of 5.5%, despite a slowdown in global markets due to the recession in Europe.

The report said global petrochemical output grew by 2.6 percent year-on-year last year, which was lower than the 3.8% growth rate registered in 2011.

Saudi Arabia continues to be the largest petrochemical producer within the GCC. With a capacity of 86.4 million tons, the Kingdom contributes more than half of the GCC’s total petrochemical production.

In 2012, around six million tons of petrochemical production capacity was made operational in Saudi Arabia, the report said.

During the year, Qatar continued to perform and now accounts for 13.2% of the total with production capacity amounting to 15.8 million tons, while Oman’s petrochemical production capacity reached 8.5 million tons equivalent to 7.4% of the region’s total.

The UAE has production capacity of 6.1 million tons, which is 4.8% of the Middle East region’s total capacity. Kuwait with 7.6 million tons of production capacity accounts for 5.9 percent of the Gulf regional capacity, while Bahrain at 1.4 million tons represents 1.1% of the regional capacity, the report stated.

As MRC wrote before, the Gulf Cooperation Council (GCC) was formed in 1981 to create economic, scientific and business cooperation among its oil-exporting members. These Middle East countries share the common faith of Islam, an Arabian culture, and an economic interest separate from OPEC. On a per capita basis, they are among the richest countries in the world. The Gulf Cooperatoin Council headquarters is in Riyadh, the capital of Saudi Arabia, its largest member. Together, they supply one third of U.S. oil and own up to USD225 billion of U.S. debt. These countries are seeking to diversify their rapidly growing economies away from oil.
MRC

BP wraps cleanup in three states

MOSCOW (MRC) -- BP said on Monday it had wrapped up formal cleanup efforts from the Macondo spill in Florida, Mississippi and Alabama, closing over three years of rehabilitation work since the deadly blowout in 2010, said Upstreamonline.

The UK supermajor's efforts included filtering beach sand to 5 feet and remediation of marshes, as well as employing new technologies to search for oil mats and buried oil deposits.

Cleanup efforts are continuing in Louisiana, which took the brunt of the oiling from the blown-out deep-water well, an event that killed 11 workers and dumped about 4.9 million gallons of crude into the Gulf of Mexico.

Work has wrapped up on 4272 of the 4376 affected miles of shoreline, BP said.

The US Coast Guard will continue oversight and any additional oil identified as being from Mississippi Canyon block 252 will be flagged for cleanup by the company.

While BP said it is working to restore the shoreline to its "baseline" pre-spill condition, the long-term effects of the oil remain unclear and its liability for civil claims and environmental damage is still pending a government impact assessment.

A decision is also forthcoming from New Orleans district Judge Carl Barbier on responsibility for the spill between BP, rig owner Transocean and cement provider Halliburton, with additional phases of a trial scheduled for later this year.

The company also signed a USD4.5 billion agreement with the US Justice Department to settle criminal charges stemming from the spill.

As MRC wrote before, oil major BP PLC is seeking to sell its US. wind energy business as part of efforts to refocus on oil and gas and position the company for growth in the future. BP has built one of the largest wind businesses in the USA. As such, any subsequent divestment will be the subject to attractive offers being received, according to BP's statement.

BP is one of the world's leading international oil and gas companies, providing its customers with fuel for transportation, energy for heat and light, retail services and petrochemicals products for everyday items.

MRC