Muhibbah gets USD32 mln Petronas Rapid subcontract

MOSCOW (MRC) -- Muhibbah Engineering (M) Bhd ( Financial Dashboard) clinched a USD32 million (RM116 million) construction subcontract for the Petroliam Nasional Bhd's (Petronas) Refinery and Petrochemicals Integrated Development (Rapid) project in Pengerang, Johor, said Theedgemarket.

In a statement to the exchange today, Muhibbah said it clinched the contract from Petronas contractor Tecnicas Reunidas S.A. Group.

Muhibbah said it was appointed by Tecnicas Reunidas to design and build "temporary construction facilities and accommodation camp". The subcontract comes under package 3 of the Rapid project.

According to Muhibbah, Petronas has awarded Tecnicas Reunidas, the Rapid package 3 contract which involves construction of oil and gas downstream facilities. The list includes kerosene, diesel and naphtha hydrotreating units for Petronas.

Muhibbah's subcontract package is expected to take one year to completeThe plant's engineering, procurement, construction and commissioning (EPCC) phase is scheduled to start in November 2015 and mechanical operations will begin in July 2018.

"The contract is expected to contribute positively to the earnings and net assets of Muhibbah group for the current and future financial years," Muhibbah said. Muhibbah shares rose seven sen or 3.7% as at 12:30pm to settle at RM1.97 for a market capitalisation of RM850.5 million. The stock had risen 5% this year, outperforming the FBM KLCI's 2% gain.

Petronas, short for Petroliam Nasional Berhad, is a Malaysian oil and gas company wholly owned by the Government of Malaysia. The Group is engaged in a wide spectrum of petroleum activities, including upstream exploration and production of oil and gas to downstream oil refining; marketing and distribution of petroleum products; trading; gas processing and liquefaction; gas transmission pipeline network operations; marketing of liquefied natural gas; petrochemical manufacturing and marketing; shipping; automotive engineering; and property investment.
MRC

MOSCOW (MRC) -- Westlake Chemical Partners LP, a Westlake company, has announced that Mr. David Lumpkins has been elected to the board of directors of its general partner, Westlake Chemical Partners GP LLC, as per the company's press release.

Mr. Lumpkins was formerly the Executive Chairman and co-founder of PetroLogistics L.P., a major producer of propylene that was acquired by Flint Hills Resources in 2014. In addition to PetroLogistics, he served in a principal executive capacity in other energy related companies, including PL Midstream, which he co-founded and served as Chairman. Prior to those initiatives, Mr. Lumpkins worked in the investment banking industry for 17 years, primarily for Morgan Stanley, where he opened its Houston office and served as a Managing Director and Head of the firm's southwest region.

Mr. Lumpkins also serves as a director of Crestwood Midstream Partners LP. He is a graduate of the University of Texas where he received a B.B.A in Finance and an M.B.A.

"We are very pleased that David has been elected to our board. We know that his unique combination of executive experience, as well as extensive experience in the petrochemical, energy midstream and financial industries will add significant value to our board and to the organization as a whole," stated James Chao, Chairman of Westlake Chemical Partners GP LLC.

As MRC informed earlier, in May 2014, Westlake Chemical Corp., the US plastics maker controlled by the billionaire Chao family, separated its ethylene assets into a tax-advantaged venture in which it plans to sell shares to the public. The master-limited partnership (MLP) includes three US ethylene plants and a 200-mile (322-km) ethylene pipeline. Ethylene, the most common petrochemical, is used to make products from plastic bottles to autoparts and pipe.

Westlake Chemical Partners LP is a master limited partnership formed by Westlake Chemical Corporation to operate, acquire and develop ethylene production facilities and other qualified assets. Headquartered in Houston, TX, the Partnership's assets consist of three ethylene production facilities in Calvert City, Kentucky, and Lake Charles, Louisiana, and an ethylene pipeline.
MRC

MOSCOW (MRC) - Because of the significant price drop of ethylene European producers had to decrease polyethylene (PE) prices. At the same time, export prices for pipe high-density polyethylene (HDPE) were reduced not proportional to the ethylene price cut, according ICIS-MRC Price Report.

European contract price of ethylene for February delivery was agreed down EUR70/tonne from the January level, resulting in a similar reduction in the cost of polyethylene production. Negotiations on the February price for European pipe HDPE for the CIS markets began last week, but the most market participants reported that they were able to achieve a reduction in export prices only by EUR30-40/tonne.

Deals for colored PE100 were discussed in the range of EUR1,040-1,120/tonne, FCA. Deals for the supply of colored PE80 were agreed in the range of EUR1,020-1,100/tonne, FCA.

MRC

MOSCOW (MRC) -- Total, Europe's second-biggest oil company, is preparing for the sale or listing of its rubber and insulation unit Hutchinson, reported Reuters.

The deal could be worth up to EUR4 billion, reuters said.

Total has asked potential advisers to pitch for the business with a mandate to be awarded soon, four sources familiar with the matter said, speaking on condition of anonymity as the matter is private.

Total could either launch an initial public offering (IPO) of the unit or could attract strategic or private equity bidders, said the sources.

According to reuters: "Total is under pressure from shareholders to improve its cash flow and protect dividends as it counts the cost of the collapse in oil prices."

As MRC wrote before, Total is in plans to permanently shut its high density polyethylene (HDPE) line in Belgium. The plant will be shut permanently owing to weak margins which have arisen on account of cheap imports in the region. Located at Antwerp in Belgium, the line has a production capacity of 70,000 mt/year.

Founded in 1853 as shoe manufacturer, Hutchinson today has more than 32,000 employees at 96 sites in 23 countries. Its core businesses are sealing systems, vibration, acoustic and thermal insulation, fluid transfer systems, transmission and mobility. In 1974 the French oil giant Total bought a majority stake in the company.

Total S.A. is a French multinational oil and gas company and one of the six "Supermajor" oil companies in the world with business in Europe, the United States, the Middle East and Asia. The company's petrochemical products cover two main groups: base chemicals and the consumer polymers (polyethylene, polypropylene and polystyrene) that are derived from them.
MRC

MOSCOW (MRC) -- Celanese Corporation, a global technology and specialty materials company and a global leader in vinyl acetate ethylene (EVA) emulsions, has declared a quarterly dividend of USD0.25 per share on its Series A common stock, payable on February 27, 2015, reported the company on its site.

The dividend is payable for the period beginning November 1, 2014 and ending on and including January 31, 2015 to stockholders of record as of February 17, 2015.

As MRC informed previously, last year, Celanese Corporation developed new emulsion products for architectural paints. The company also expanded its product portfolio for the coatings and adhesives industries, including Celansese's solvents, vinyl acetate monomer, EVA polymers and emulsions. Thus, the company's new emulsion products - EcoVAE 450, Avicor 385 and Avicor 390 - represent solutions to many of the industry's issues including low-VOC primers, stain resistance and broad formulation latitude.

Celanese Corporation is a global technology leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Based in Dallas, Texas, Celanese employs approximately 7,400 employees worldwide and had 2013 net sales of USD6.5 billion.
MRC