Leaked report says slack management exposed BP to high safety risk

MOSCOW (MRC) -- BP's refining operations are exposed to high safety risks that can lead to deadly accidents and pollution as a result of slack management and a lack of investment, according to a leaked internal report from 2015, reported Reuters.

The report, co-authored by BP, IBM and industry consultancy WorleyParsons, states that the British company's refining and petrochemical business is trailing rivals such as Royal Dutch Shell by up to seven years in managing information to reduce safety risks and financial losses.

"Inadequate management and use of engineering information has been a root cause or contributing factor" in 15% of 500 high-risk incidents reviewed in the report, which was provided by Greenpeace.

BP has strived to improve its safety record since the 2010 Deepwater Horizon rig explosion in the Gulf of Mexico where 11 people were killed and which led to the largest environmental disaster in US history.

In comments on the leaked report, BP said it was "committed to safe, reliable and compliant operations. With that in mind, BP regularly conducts internal assessments in an effort to make improvements to its operations."

"This particular report focused on potential enhancements to how BP manages engineering data. It is not an analysis of any operational incidents, and any suggestion that this report indicates BP is wavering from its safety commitment is wrong," a company spokesman said.

The most significant incident recorded by the authors occurred in January 2014 at the 413,500 bpd Whiting, Indiana refinery which cost BP USD258 million in lost production. The incident at the gasoil hydrotreater unit, which removes sulfur from oil, was due to "multiple deficiencies in engineering information management."

At the Hull petrochemical plant in northern England equipment that was not operated correctly led to losses of $35 million to USD45 million.

BP's safety record came in to focus in 2005 when a blast at its Texas City refinery killed 15 workers and injured 180 others. BP was fined USD84.6 million by the US Occupational Safety and Health Administration between 2005 and 2012 for safety rules violations found at the refinery in investigations following the blast.

The report said highly material safety risk and financial performance issues remained due to "the lack of refining and petrochemicals-wide direction, governance, coordination and investment."

The upstream segment has further work to do, but is however significantly ahead of downstream, the report said, reflecting the big focus BP has placed on safety after the Deepwater Horizon explosion.

We remind that, as MRC informed previously, in early 2016, BP PLC agreed to sell its petrochemical complex in Decatur, Alabama, to Indorama Ventures Public Co. Ltd., for an undisclosed sum, as part BP's plan to restructure its global petrochemicals business. The divestment is in line with BP’s global petrochemicals strategy of pursuing a competitively advantaged portfolio through world-scale, low-cost facilities that utilize BP proprietary technology, including the production of purified terephthalic acid, or PTA, a key raw material in the production of polyester.

BP is a leading producer of oil and gas and produces enough energy annually to light nearly the entire country for a year. Employing about 17,000 people across the country, BP supports more than 170,000 additional jobs through all of its business activities.
MRC

MOSCOW (MRC) -- Avery Dennison Corporation announced it has agreed to acquire Hanita Coatings, a pressure-sensitive materials manufacturer of specialty films and laminates from Kibbutz Hanita Coatings and Tene Investment Funds for the purchase price of USD75 million, subject to customary adjustments, said producer on its site.

Headquartered in Israel with sales and distribution facilities in the United States, Germany, China and Australia, Hanita Coatings develops and manufactures coated, laminated, and metallized polyester films for a range of industrial and commercial applications, all of which require high performance and superior quality.

Hanita Coatings’ window films are used in architecture and automotive aftermarkets; its top-coated polyester films are used in the manufacture of durable labels; and its ultra-high barrier films form part of insulation systems used in refrigeration, buildings and cold chain packaging.

"We see clear opportunities to leverage our strong global organization and established brand to help accelerate Hanita Coatings’ product commercialization around the world," said Mitch Butier, Avery Dennison president and CEO. "In addition to expanding our product portfolio and providing new growth opportunities, Hanita Coatings’ culture of innovation and long-standing commitment to R&D are a strong fit with our own company’s 80-year history of innovation in materials science."

With 2015 sales of roughly USD50 million, Hanita Coatings currently employs more than 220 employees, most of whom are located at the company’s headquarters in Israel’s Western Galilee. The 33-year-old company generates sales in more than 40 countries.

"We are excited to be joining forces with such a global industry leader and see it as a great opportunity for Hanita Coatings to realize its full potential," added Oved Shapira, CEO, Hanita Coatings. "I am convinced that Avery Dennison’s resources, distribution channels, and brand will benefit our customers across all our markets, enabling continued innovation through future investment and improved manufacturing efficiency."

Avery Dennison expects that completion of the transaction will take up to a few months, subject to customary closing conditions and approvals. Avery Dennison announced the deal in September 2016.

Avery Dennison is a global leader in labeling and packaging materials and solutions. The company’s applications and technologies are an integral part of products used in every major market and industry. With operations in more than 50 countries and more than 25,000 employees worldwide, Avery Dennison serves customers with insights and innovations that help make brands more inspiring and the world more intelligent. Headquartered in Glendale, California, the company reported sales of USD6.0 billion in 2015.
MRC

MOSCOW (MRC) -- Technip and Chemetry have signed an exclusive cooperation agreement for the licensing and engineering of Chemetry’s eShuttle technology for the production of ethylene dichloride (EDC), as per Technip's press release.

EDC is a commodity chemical produced worldwide and used primarily for PVC plastic production.

The technology uses a metal halide ion process to produce high purity EDC without the generation of chlorine gas. The process reduces electrical power consumption compared to latest generation chlor-alkali processes. Power savings can be reduced by nearly half compared to older diaphragm or mercury-based processes. Additionally, the process is suited for integration with oxygen depolarized cathode technology. The technology was pioneered in Chemetry’s laboratory and integrated pilot demonstration facilities in Moss Landing, California.

Technip’s operating center in Boston, Massachusetts will manage the agreement, with support from Technip’s office in Lyon, France. Both centers are part of Technip Stone & Webster Process Technology, which looks after Technip’s expanding portfolio of onshore process technologies in petrochemicals, refining, hydrogen and syngas, polymers and gas monetization.

"Since its founding, Chemetry has been focused on redefining how chemicals are made," Dr. Ryan Gilliam, Chemetry CEO, said. "From lower energy requirements and improved margins, to less impact on the environment and safer operation, we are developing a technology platform that will have a lasting impact."

The eShuttle technology uses the same feedstocks and produces the same products (EDC, caustic and hydrogen) as conventional processes, allowing retrofitting to existing chlor-alkali/EDC plants.

As MRC wrote previously, in October 2016, Technip was awarded by Public Joint Stock Company (PJSC) Kazanorgsintez a contract to provide engineering and procurement of three proprietary SMK grassroots furnaces at Kazan, Republic of Tatarstan, Russia. The furnaces will be part of the ethylene plant at the site. This project is another step in Kazanorgsintez’ ongoing cracking furnaces replacement program and confirms the long-standing relationship between the two companies.

In 2007 and 2015, Technip supplied SMK double-cell cracking furnaces to Kazanorgsintez with successful start-up and operation. This furnace type is particulary suitable for cracking high-capacity, low-cost ethane and propane gas feedstock. Technip’s operating center in Zoetermeer, The Netherlands, will execute the project, which is scheduled for mechanical completion in 2018.

Technip is a world leader in project management, engineering and construction for the energy industry.
From the deepest Subsea oil & gas developments to the largest and most complex Offshore and Onshore infrastructures, our close to 32,500 people are constantly offering the best solutions and most innovative technologies to meet the world’s energy challenges. Present in 45 countries, Technip has state-of-the-art industrial assets on all continents and operates a fleet of specialized vessels for pipeline installation and subsea construction.
MRC

МOSCOW (MRC) -- Sinclair Casper Refining Company has paid $655,000 to reimburse the US Environmental Protection Agency for response costs incurred at the Empire State Oil Company Refinery Site in Thermopolis, Wyoming, said Hydrocarbonprocessing.

The company entered into a settlement agreement with EPA for the recovery of past costs associated with the cleanup of the site, including the removal of asbestos, in September. EPA received payment last week.

The Thermopolis refinery site operated as an oil refinery from 1920 until 1969. Beginning in 1974, the refinery was razed and equipment was sold and removed from the site by various entities, including Sinclair’s predecessor, Little America Refining Company. During demolition activities, a significant amount of asbestos-contaminated pipe insulation was stripped from equipment and disposed at the site.

EPA assessed the property in 2011 and identified significant asbestos contamination on the ground surface. In November 2013, EPA removed approximately 4,000 cubic yards of asbestos-containing materials and soils from the site. Excavated areas were backfilled with clean native soil from a property near the site and were re-seeded the following spring.

The agreement with Sinclair Casper Refining was entered into under the federal Comprehensive Environmental Response, Compensation and Recovery Act, also known as Superfund. Funds recovered as part of this settlement agreement will be deposited into the Superfund account used to address cleanup needs at contaminated sites across the United States.

The administrative settlement published in the Federal Register on Sept. 20, and became effective following a 30-day public comment period.
MRC

MOSCOW (MRC) -- LiqTech International, Inc. announced that the company has received a USD350,000 order for the company's water treatment systems for flue gas condensate, said Hydrocarbonprocessing.

The order was received from DuPont and will be installed at their facility in Grindsted, Denmark.

"We have invested significant resources in developing a standardized system for the treatment of flue gas condensate,” Sune Mathiesen, LiqTech CEO, said. “Our technology has proven to be well suited for this challenging application and we are very pleased to note that our product is gaining still more interest and acceptance from the industry."

"We are very happy to work with LiqTech on this project,” Steffen Bendstrup, DuPont Team Leader, said. “They have a proven technology and based on their prior experience they were able to provide us with the necessary process guarantees. When the system is installed it will remove heavy metals before discharge. In the future we have the opportunity to further add a reverse osmosis system, which will allow us to reuse the water."

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