Fluor Corporation and holding company SIBUR signed a memorandum of possible JV

(SIBUR) -- Fluor Corporation and the petrochemical holding company SIBUR have signed a memorandum of understanding for the establishment of a joint venture based on NIPIgazpererabotka, the Russian company's Research and Design Institute for Gas Processing. Initially, Fluor will acquire a 10% stake in NIPIgazopererabotka. Three members of Fluor's management will become members of the Board of Directors of NIPIgazopererabotka.

In the first stage, a working group consisting of representatives from Fluor and NIPIgazopererabotka will launch a pilot project for the design and construction of the Yuzhny Balyk -Tobolsk pipeline connecting the Yuzhny Balyk gas processing plant to the Tobolsk petrochemical complex.

In future the founders of the joint venture plan to build on the basis of the institute's leading design and engineering center in the oil and gas construction market in Russia and the Commonwealth of Independent States (CIS).


LUKOIL issued US$1.5 bln in convertible bonds

(LUKOIL) -- OAO LUKOIL announced the completion of the issuance of U.S.$1.5 billion 2.625 per cent senior unsecured convertible bonds due June 2015.

The bonds are convertible into American Depositary Receipts ("ADRs") listed on the London Stock Exchange each representing one ordinary share of OAO LUKOIL.

LUKOIL intends to use the proceeds of the offering for general corporate purposes.

This issuance of senior unsecured convertible bonds represents the first post crisis major issue of convertible debentures. Due to high investment grade rating of the Company and positive investor attitude towards the oil and gas sector, the transaction created a strong demand by the investment community.


Sipchem to issue US$400 mln bond

(Plastemart) -- Saudi International Petrochemical Co (Sipchem) plans a US$400 mln bond to raise a minimum of 1.5 billion riyals by the first quarter of 2011 to finance expansion. The issuance is expected by the first quarter of next year. Sipchem has mandated one local and one international bank as financial advisers, declining to give more details before it gets approval from the Capital Market Authority (CMA). Sipchem is planning to spend 400 million riyals to build the first ethyl acetate plant in the region.


Dynasol SA to build a plant of styrenic block copolymers

(Plastics News) -- Dynasol SA has formed a 50-50 joint venture with Shanxi Northern Xingan Chemical Industry (Xingan) to build a plant making synthetic rubber -- in the form of styrenic block copolymers -- at a plant in China's Liaoning province.

The plant will have annual capacity for about 220 million pounds of synthetic rubber, officials with both companies said in a Dec. 14 news release. Material made at the plant will be based on styrene and butadiene and will be used in the automotive market, as well as in cables, adhesives, medical care and asphalt modification, officials said.

Madrid-based Dynasol -- a joint venture between Repsol and the Kuo Group -- already operates SBC plants in Spain and Mexico. The new capacity will boost Dynasol's global total by 50 percent.


US Celanese plans to enter China's fuel ethanol market

(ICIS) -- US chemical company Celanese plans to enter China's fuel ethanol market to capitalise on the country's goals in renewable fuels consumption, chief financial officer Steven Sterin said on Wednesday.

Celanese announced in November its plans to build one or two coal-based ethanol plants in China - each with capacity of 400,000 short tons/year. Each plant's capacity could be expanded to 1m tons/year at a fraction of the original capital investment, said Sterin in an interview with ICIS.

The cost to build a 400,000 ton/year plant was expected to be around $300m (┬225m), he added.

Once approved, the Chinese plants - whose locations were still to be decided - would take 30 months to build and would initially serve the domestic industrial ethanol market, which was growing 8-10%/year, as estimated by Celanese.

Current chemical applications demand for ethanol in China - for products including solvents, inks, lacquers, paints and coatings - was estimated at 3m tons/year, according to the company.