BP to pull staff from Egypt amid unrest

MOSCOW (MRC) -- UK supermajor BP said it will start pulling some staff from Egypt as unrest in the North African nation escalated following the military's ousting of president Mohammed Mursi, said Upstreamonline.

In a statement, BP said that "as a precautionary measure, we will be withdrawing a number of non-essential expatriate staff, contractors and families on a temporary basis".

It added that all staff were safe and that its local oil and gas production had not been affected. "This decision was taken after reviewing guidance from governments and our own monitoring of the situation on the ground," the statement said. It added: "Around 40 essential expatriate staff remain and our office in Cairo is open."

BP is the first major operator to reduce its ranks in the strife-hit country, a sign of the broader impact of the political crisis.

A Shell spokesman told Dow Jones that it does not comment on specific security issues but that it is "following the situation in Egypt closely" and that "the safety and security of our staff is our top priority". As MRC wrote before, Chevron is in advanced talks to sell most of its downstream assets in Egypt and Pakistan in a sale that could be valued at around USD300 million. The company is conducting separate sale processes for its assets in both countries, the sources said in the report.

Houston-based Apache, one of the top operator's in Egypt, also said it does not comment on security measures but stressed that "nothing has materially changed" due to the unrest. Drilling and production activities "continue unabated", a spokesman told Upstream, adding that Apache's Egypt operations are located in remote areas away from the centres of unrest.

Tensions mounted in Egypt on Friday as security forces opened fire and launched tear gas at Mursi supporters, reportedly killing at least one person and injuring several others.

The US State Department has advised all Americans living in Egypt to leave the country, and has reportedly advised non-essential US diplomats to leave as well.

Mursi, Egypt's first democratically elected leader, and his top aides were placed under house arrest on Wednesday. Egypt's army also declared a state of emergency in areas bordering the Suez shipping route following an airport attack by Islamists.

The unrest has pushed oil prices higher.
MRC

MOSCOW (MRC) -- Hopes that Poland could lead a US-style shale gas boom in Europe are fading fast as energy companies say red tape is delaying commercial output and Warsaw's draft proposals to cut bureaucracy do not go nearly far enough, according to Upstreamonline.

The firms say there is plenty of gas but its exploitation is frustrated by difficult geology and onerous, unclear regulation.

Prospects darkened this year after Marathon Oil and Talisman Energy followed ExxonMobil in pulling out of Poland, which was once seen as Europe's best shale prospect with substantial reserves and a friendly government.

The government, hoping shale gas will deliver Poland from reliance on energy imports from Russia, is proposing new legislation to ease conditions for investors. Global players remaining in Poland's shale sector include Chevron, ConocoPhillips and Eni.

Under pressure to retain investors, the deputy environment minister and chief geologist, Piotr Wozniak, has drafted proposals for new rules that are awaiting cabinet approval. These include allowing firms to extend exploration licenses by two years if needed, instead of the previous proposal of one year; letting them convert exploration permits into production permits without having to bid again; and making it easier to lease state-owned land on and around drilling sites.

Asked about its plans, a Chevron spokeswoman said the company was committed to Poland. An Eni spokesman declined to comment. A ConocoPhillips media representative in Warsaw did not respond to a request for comment from Reuters.

If shale gas fails to live up to the government's ambitions, the chief beneficiary will be Russia's Gazprom, which will continue to be Poland's biggest gas supplier.

As MRC wrote earlier, Dow Chemical is interested in shale gas exploration in Poland along with its perspectives and, therefore, is analyzing the chemical industry in Poland at present. As a major chemical manufacturer, Dow is both a potential consumer and contributor to the production of shale gas and its associated products, notably natural gas liquids. Many of Dow's businesses are already developing chemical and technology solutions for shale gas exploration and development, such as advanced microbial control technologies, which help to protect water supplies.

MRC

MOSCOW (MRC) -- Arkema has announced a 15% debottlenecking of its bis-peroxide capacity in both its Spinetta (Italy) and Franklin (Virginia) factories, according to the company's press release.

This new capacity will allow Arkema to respond immediately to strong demand in the synthetic rubber crosslinking industry, in particular in Asia, and to support recent developments in fast-growing markets.

This increase capacity, already effective, is the first stage of a multi-step plan which intends to grow the global bis-peroxide capacity by 30% by end 2014.

With its two brands Luperox and Vulcup, Arkema is the world leader in the production of bis-peroxide (Bis-Isopropylbenzene-Peroxide), an organic peroxide largely used in the crosslinking of rubber in various sectors such as wire & cable, automotive and footwear. The bis-peroxide market is expected to grow by some 6%/year in the 3 main regions of Asia, Americas and Europe.

Arkema has recently developed the Luperox FreeO grade which provides an alternative to current crosslinking technologies used extensively today in the foamed EVA industry, as it has the advantage of producing no strong smelling and persistent VOCs (Volatile Organic Compounds), a characteristic which has become a major expectation especially for footwear manufacturers.

"This new capacity will further strengthen our leadership position in bis-peroxide. But above all, it will allow Arkema to follow the growth of our clients, which is expected to be strong especially in Asia. Arkema will also be able to serve new customers that make the choice to replace traditional crosslinking agents with more eco-friendly bis-peroxide," indicated Manny Katz, Global Group President, Organic Peroxides.

As MRC informed previously, last year Arkema announced its 2016 ambition to become a world leader in specialty chemicals and advanced materials. With a selective and profitable growth strategy, the Group targets sales of EUR8 billion and an EBITDA margin of 16% in 2016 while maintaining gearing below 40%. The Group also intends to maintain its pace of development and aims to achieve sales of Eur10 billion with an EBITDA margin close to 17% in 2020.

Arkema is a leading European supplier of chlorochemicals and PVC. The Fonds Strategique de Participation (FSP), a mutual fund created by four major French insurance companies - BNP Paribas Cardif, CNP Assurances, Credit Agricole Assurances through its subsidiary Predica and Sogecap (Groupe Societe Generale) - in order to support long-term investments in listed companies, has recently announced that it now owns 6% of Arkema's share capital.
MRC

MOSCOW (MRC) -- China-based oil and gas company, PetroChina Company, and INEOS Group, a UK-based chemicals group, have formed trading and refining joint ventures (JV) between PetroChina International (London) Company and INEOS Investments (Jersey), said Refiningandpetrochemicals.

The JVs have been formed to manage the trading and refining operations at INEOS' Grangemouth refinery in Scotland and Lavera refinery in France. PetroChina paid USD1.015bn in cash for the shares in the joint ventures.

The JVs are expected to create a strategic partnership between both companies to strengthen presence of both the refineries, improve security of supply for customers and secure jobs in both the UK and France.

Through the JVs, PetroChina is expected to explore the high-end European market and start establishing PetroChina's European oil and gas operation centre.

INEOS Refining CEO Calum MacLean said PetroChina is its long-term strategic partner in both the Grangemouth and Lavera refineries.

"The formation of the joint ventures provides further investment in our refineries, and enhances their competitiveness in European markets," MacLean added.

PetroChina's parent company China National Petroleum (CNPC) and INEOS are also working on a strategic co-operation agreement to share refining and petrochemical technology and expertise.

The Grangemouth refinery is located on the Firth of Forth and processes about 210,000 barrels of crude oil per day, and provides fuel to Scotland, Northern England and Northern Ireland.

The Lavera refinery located on the coast of the Mediterranean crude oil trading basin processes 210,000 barrels of crude oil per day and supplies fuel through pipelines into France, Switzerland and Southern Germany.
MRC

MOSCOW (MRC) -- Huntsman Corp. has signed a definitive agreement to acquire Oxid LP, a privately-held manufacturer and marketer of specialty urethane polyols based in Houston, Texas, said Hydracarbonprocessing.

Oxid's polyols are a key component in the production of energy-saving polyurethane insulation products that are used in residential and commercial construction.

The polyols are combined with methylene diphenyl diisocyanate (MDI) to create polyurethane foam insulation for walls, roofs, refrigerators and other applications.

Oxid markets its product line of specialty polyols under the trademark Terol, and it distributes products worldwide from its manufacturing facility in Houston.

The addition of Oxid's MDI product portfolio will support Huntsman's offerings to downstream insulation markets in North America and provide new opportunities globally. The transaction is expected to close in the 3Q. Oxid generated USD86 million of revenue in 2012.

As MRC wrote before, Huntsman Corp, the U.S. chemicals producer founded by Jon Huntsman Sr., is considering an offer for Rockwood Holdings Inc. titanium-dioxide pigments business.

Huntsman is a global manufacturer and marketer of differentiated chemicals. Our operating companies manufacture products for a variety of global industries, including chemicals, plastics, automotive, aviation, textiles, footwear, paints and coatings, construction, technology, agriculture, health care, detergent, personal care, furniture, appliances and packaging.
MRC