Orpic aims to complete financing for Liwa plastics project in 2015

MOSCOW (MRC) -- State-owned Oman Oil Refineries and Petroleum Industries Co. (Orpic) expects to achieve financial closure for its Liwa Plastics Project in Sohar, Oman, by the end of this year, reported GV with reference to the Muscat Daily quoting of Orpic Chief Executive Musab al Mahrouqi.

The project, expected to cost USD 3.6-billion, includes an 859,000-t/y ethylene cracker with downstream production of polypropylene and high- and linear low-density polyethylene. It is being set up adjacent to the Sohar refinery, which is being expanded to 180,000 b/d from 116,000 b/d.

Last year, Orpic raised USD 2.7-billion from 20 financial institutions to fund its expansion plans without support from the Oman government, he noted. "This year we plan to raise USD 3.3-billion to USD 3.7-billion for the Liwa project. We will start the process of engaging with financial institutes by October. It will be a challenge, but our target is to achieve financial closure by the end of this year."

As MRC informed previously, in late February 2015, Orpic restarted its polypropylene (PP) plant following maintenance turnaround. The plant was shut in the last week of January 2015. Located at Sohar in Oman, the plant has a production capacity of 340,000 mt/year.

ORPIC (Oman Oil Refineries and Petroleum Industries Company) is one of the leading companies in Oman and has two refineries in that country, in Sohar and Muscat. ORPIC is owned by the Government of the Sultanate of Oman and Oman Oil Company SAOC, the trading company created by the Government of the Sultanate of Oman for managing investments in the energy sector.
MRC

MOSCOW (MRC) --International Polymers Co. has achieved commercial operation at its new 200,000-t/y ethylene vinyl acetate (EVA) and low-density polyethylene (LDPE) plant in Jubail, Saudi Arabia, reported GV.

International Polymers, a venture owned 75% by Saudi International Petrochemical Co. (Sipchem) and 25% by Hanwha Chemical Co., has successfully completed testing equipment and ensuring the facility’s efficiency, production capacity and product quality, Sipchem said.

Ethylene feedstock will be provided by Jubail Petrochemical Co., while Sipchem affiliate International Vinyl Acetate Co. will supply vinyl acetate monomer feedstock.

A technical license agreement was reached with ExxonMobil for the plant, which International Polymers Chairman Ahmad A. Al-Ohali noted is considered the first of its kind in the Middle East.

As MRC informed earlier, on July 22, 2013, Sipchem Chemicals Company (SCC), an affiliate of Saudi's Sipchem, signed an incorporation agreement with Hanwha Chemicals Corporation to form a new company, under name of "Saudi Specialty Products Company" for establishing conversion projects in Saudi Arabia.

This move was down "in line with the company's commitment to implement what has been stated at volume of fuel and feedstock allocation required to establish EA, EVA, WCC and conversion industries issued by Ministry of Petroleum and Mineral Resources".

The Joint Venture between SCC and Hanwha comprised of two manufacturing facilities; the first one located at Hail will produce 4,000 MTPA of EVA films whereas the second one located at Riyadh will manufacture plastic moulds up to 1000 tons. It is noteworthy that Sipchem Chemicals Company owns 75% of new company capital while Korean Hanwha owns 25%.
MRC

MOSCOW (MRC) -- Kavian Petrochemical Co.'s second phase ethylene facility in Assaluyeh, Iran, is nearing completion and scheduled to come on stream this year, reported GV with reference to the Mehr News Agency.

Marzieh Shahedaei, a director of Iran’s National Petrochemical Co., warned, however, that the plant’s ability to achieve its full design capacity of 2-million t/y will depend on the receipt of sufficient ethane feedstock from the delayed phases 15 and 16 of the South Pars gas field.

As MRC informed earlier, Kavian started up the first of two 1-million-t/y trains at Assaluyeh in the Pars Special Economic Energy Zone in late 2012.

"However," Shahedaei noted, "the first phase of the complex is currently working with half of its full capacity due to lack of input material."

Ethylene produced by Kavian is expected to meet the feedstock requirements of petrochemical complexes served by the west ethylene pipeline.
MRC

MOSCOW (MRC) -- DuPont Co.’s army of retail shareholders proved decisive in the defeat of veteran activist investor Nelson Peltz’s attempt to get on the board and split up the 212-year-old chemical company, said Hydrocarbonprocessing.

All DuPont’s director nominees were elected, it said Wednesday at its annual meeting in Wilmington, Delaware. Peltz’s Trian Fund Management, which had sought four board seats, said the vote was "close." The final count hasn’t been disclosed. DuPont shares fell as much as 7%.

The outcome is a decisive victory for DuPont CEO Ellen Kullman following a five-month-long proxy fight. Both tried to muster votes via advertisements in local and national media. About one-third of DuPont shareholders are private individuals such as retired former employees, compared with about 10% at most other companies, the company said last month.

"We got retail investors’ attention this time," Kullman told reporters at DuPont’s Chestnut Run Plaza office complex after Wednesday’s meeting was adjourned. While such shareholders rarely vote, when they do they’re usually supportive of incumbent management, she said.

Peltz, 72, told reporters separately that Trian had support from some institutional investors but it could have done better with retail shareholders and index funds.

DuPont "clearly did a better job with the retail shareholder who clearly doesn’t understand the issues," he said. "They did a better job scaring people."

Trian had spent much of the past two years criticizing DuPont’s financial performance, arguing that the company was too complex and bureaucratic and would be better off split into two. The failure of its DuPont campaign is the first since Peltz’s firm was established a decade ago.

As MRC informed earlier, DuPont Co. said first-quarter profit declined from the previous year, as revenues dropped amid adverse currency and decreased volumes. The company now expects higher-than-previously estimated negative currency impact in 2015, and as a result sees full year earnings at the low end of its prior outlook.

DuPont is an American chemical company that was founded in July, 1802. The company manufactures a wide range of chemical products, leading extensive innovative research in this field. The company is the inventor of many unique plastics and other materials, including neoprene, nylon, Teflon, Kevlar, Mylar, Tyvek, etc. DuPont was the developer and main producer of Freon used in the production of refrigeration equipment.
MRC

MOSCOW (MRC) -- PTT PCL, Thailand's largest energy firm, said its first-quarter net profit fell 21 percent year-on-year, but rebounded from a loss in the previous quarter due to the improved performance of its refinery business, said Reuters.

State-controlled PTT posted a net profit of 22.6 billion baht (USD670 million), higher than the average 20.8 billion forecast by 11 analysts polled by Reuters.

The result compared with a net profit of 28.5 billion baht a year earlier and a loss of 26.6 billion in the previous quarter.

First-quarter sales revenue dropped 25 percent on year to 515 billion baht, hit by lower average selling prices after declines in global crude oil prices, it said in a statement.

PTT booked a gain of 1.9 billion baht on its investments in petrochemical and refinery affiliates, up from 1.2 billion baht a year earlier, thanks to a better performance of in refining and a higher run rate, it said.

Declines in global oil prices prompted PTT to reduce its five-year investment plan to 299 billion baht from 327 billion baht to reflect global economic uncertainty.

As MRC informed earlier, PTT Global Chemical PCL is studying several options for supplying sufficient raw material to its petrochemical plants, including imports of oil feedstocks after declines in global crude prices. The move is part of a plan to cope with a potential drop in domestic natural gas supply after Thailand's government put bidding for new oil and gas concessions on hold.

PTT Global Chemical is the flagship petrochemical company of the PTT Group. PTT Global Chemical is a leading player in the petrochemical industry and owns several petrochemical facilities with a combined capacity of 8.45 million tonnes a year.

MRC