Sinopec restarts operations of Qingdao pipelines undamaged by blast

MOSCOW (MRC) -- China Petroleum & Chemical Corp., the nation’s biggest refiner known as Sinopec, started pipelines in Qingdao on 26 November that were undamaged after an explosion last week, which killed at least 55 people, reported Hydrocarbonprocessing.

The pipelines resumed operations after inspections, said Zhao Tong, an external Sinopec spokeswoman, who works for Brunswick Group. The Qingdao refinery will return to normal output "soon," she said.

The facility cut operations after the accident on Nov.22 and relied mostly on crude stored in tanks to keep the plant running, Zhao said.

As MRC wrote previously, Qingdao is one of China's largest crude oil import terminals, supplying at least two major Sinopec refineries - the Qingdao plant and Sinopec Qilu Petrochemical Corp - as well as many small, independent refineries. The explosion occurred after an oil leak led to a fire.

China Petroleum & Chemical Corporation (SINOPEC) is a large scale integrated energy and chemical company with upstream, midstream and downstream operations. Sinopec is the worlds seventh biggest company by revenue.
Sinopec is China's largest manufacturer and supplier of major petrochemical products. It is the second largest producer of crude oil in China. Its refining capacity and ethylene capacity rank No.2 and No.4 globally. Sinopec has reported first-half 2013 net income of 30.281 billion yuan (USD4.85 billion), up 23.6% year over year.
MRC

MOSCOW (MRC) -- Italian Eni has acquired an operatorship stake in acreage in the Ukrainian sector of the Black Sea that includes the Subbotina oil discovery, said Upstreamonline.

The Milan-headquartered oil major will hold a 50% interest in the block, with partners state oil venture Nadra Ukrainy’s Vody Ukrainy subsidiary (35%), state gas player Naftogaz’s Black Sea arm Chornomornaftogaz (10%) and France’s EDF (5%).

While Eni did not specify the investment involved in the production sharing agreement, Minister of Energy Eduard Stavytsky was earlier quoted by the Ukrainian news agency UNIAN as saying the block would involve an outlay of USD4 billion.

The 1400-square kilometre patch lies off the eastern Crimean peninsula in the north-western Black Sea. It is home to the Subbotina oil discovery uncovered by Chernomornaftogaz in 2006.

Licenses for Abiha, Mayachna and Kavkazka - collectively known as the Pry Kerch block – are also part of the deal, and contain several oil and gas prospects, according to Eni.

The Italian explorer was one of the majors to lose out in bidding on a pair of Ukraine shale blocks last year, which were landed by Shell and Chevron.

US supermajor ExxonMobil and Russia’s TNK-BP also lost out on the USD10 billion deals for the Odessa and Yuzivska blocks.
MRC

MOSCOW (MRC) -- Imports of chemical products into Brazil fell by 2.3% to US$4.2bn in October compared to the same month last year, said Bnamericas.

Exports slipped by 3.8% to USD1.3bn. For the first 10 months of the year, imports were 9.2% higher than in the same period in 2012, at USD38.7bn, while exports were down 4.8% at USD11.9bn.

Compared to the month of September this year, chemical imports were 8% higher while exports rose by 6.8%.

In a statement, Abiquim's director of foreign trade, Denise Naranjo, said that Brazil's trade deficit in chemicals had stabilized in recent months as a result of the depreciation of the Brazilian real, which encouraged exports and was a disincentive to imports.

Because of the effects of the lower real, Abiquim reduced its forecast for Brazil's trade deficit in chemicals this year to USD32.2bn from its previous estimate of USD33bn.

According to Abiquim, thermoplastic resins are Brazil's most exported chemical product. However, exports of these resins was 10.7% lower than in the first 10 months of 2012, at USD1.7bn.

Imports of fertilizers, the most imported chemical product in Brazil, rose by 7.2% to USD6.9bn.
MRC

MOSCOW (MRC) -- The operator of the Croatian bourse said on Wednesday it has revised its CROBEX blue-chip stock index, dropping polymer and petrochemicals producer Dioki, said Seenews.

The extraordinary revision was due to the fact that Dioki announced on Wednesday bankruptcy proceedings are being launched against the company, the bourse operator said in a statement. The calculation of the revised CROBEX will be implemented after the close of trading on Wednesday.

Dioki creditors at a hearing in October 2013 did not endorse a financial restructuring plan for this petrochemical company. Creditors which claim 52.88% of Dioki's debt voted against the restructuring plan, while those claiming 41.22% were in favour. The hearing was attended by creditors whose claims from Dioki amount to HRK 905.4 million.

DIOKI d.d. was founded on 17 July 1995 as a merger of INA-OKI d.d. of Zagreb, DINA d.d. of Omisalj and INA-Naftaplin's Ethylene Production Unit of Zagreb. The company's basic activity is the production of polymers and petrochemicals: low density polyethylene, general purpose polystyrene, high impact polystyrene, expandable polystyrene, ethylene.
MRC

MOSCOW (MRC) - The third largest Russian producer of low density polyethylene (LDPE) Ufaorgsintez (Bashneft Group) announced a reduction in contract prices by Rb250-500/tonne, effective from 1 December, according to ICIS-MRC Price Report.

The contract prices of 108 and 158 LDPE were reduced by Rb250/tonne and Rb500/tonne, respectively. Price for polyethylene for shrinkable films - 153 PE was cut by Rb450/tonne.

Ufaorgsintez OAO manufactures organic synthesis products in Russia and Europe. Its products include ethylene, propylene, ethanol, cumol, ethyl benzol, phenol, acetone, copolymer rubber, polyolefines, poly vinyl chloride and polyethylene items, thinners, and dilutants. The company exports its products to Belorus, Kazakhstan, Finland, Germany, France, and Brazil. Ufaorgsintez OAO was founded in 1956 and is based in Ufa, Russia.

The PE production capacity of the plant is about 90,000 tonnes/year. Total PE production of the producer was 75,600 tonnes in the first ten months of this year.

MRC