WorleyParsons signs multi-regional agreement with Chevron

MOSCOW (MRC) -- WorleyParsons has signed a long term multi-regional agreement with Chevron for engineering and procurement services, said Hydrocarbonprocessing.

The scope of the agreement allows use in all engineering phases of Chevron’s capital project program from conceptual engineering to final design. Numerous WorleyParsons locations are eligible to work under the agreement.

"WorleyParsons has enjoyed a strong relationship with Chevron over many years and this agreement further solidifies the relationship between our companies. As Chevron grows in the years ahead, we are proud to be a trusted partner" said Andrew Wood, Chief Executive Officer of WorleyParsons.

As MRC informed earlier, in July 2016, USD36.8bn expansion of the Tengiz oilfield in Kazakhstan, the largest investment by private sector oil companies this decade, has been given the go-ahead by Chevron of the US, bucking the trend of delays and cancellations resulting from the slump in crude prices since mid-2014.

Chevron Corporation is an American multinational energy corporation. One of the successor companies of Standard Oil, it is headquartered in San Ramon, California, and active in more than 180 countries. Chevron is engaged in every aspect of the oil, natural gas, and geothermal energy industries, including hydrocarbon exploration and production; refining, marketing and transport; chemicals manufacturing and sales; and power generation.

Dow expansion in Freeport nearing completion, ethylene plant to come online midyear

MOSCOW (MRC) -- Dow Chemical Co.'s multibillion-dollar expansion in Freeport is nearing completion, with the ethylene plant coming online midyear - getting a head start on competing projects from Exxon Mobil Corp. and Chevron Phillips Chemical Co. in Baytown, as per Plastemart with reference to houstonchronicle.com.

Dow's nearly completed ethane cracker will process ethane into 1.5 million tpa of ethylene.

As MRC informed preivously, Dow Chemical's polyethylene (PE) expansion at its Freeport, Texas, complex is on track for a mid-2017 startup. The Freeport complex currently has a 640,000 mt/year of polyethylene capacity and is expected to add 1,050,000 mt/year of low density polyethylene (LDPE) and linear low density polyethylene (LLDPE).

The Dow Chemical Company is an American multinational chemical corporation. Dow is a large producer of plastics, including polystyrene, polyurethane, polyethylene, polypropylene, and synthetic rubber.

Evonik and Forward Engineering to form JV to develop fiber composite components for automotive industry

MOSCOW (MRC) -- Germany-based specialty chemicals company Evonik Industries and automotive engineering company Forward Engineering have established a joint venture - Vestaro, plan to develop fiber composite components for the automotive industry, reported Plastemart.

Evonik will hold 49% stake in the JV, while Forward Engineering will hold 51% in Vestaro. The core competencies of Vestaro are technology consulting and selection and adaptation of matrix formulations to meet specific customer requirements for efficient manufacturing.

Roberto Vila-Keller, head of the Crosslinkers Business Line at Evonik, said: "Vestaro is an important step in further expanding our partnership with automobile manufacturers. For many years now, we have been developing products to support their developments in lightweight construction." Leif Ickert, General Manager of Vestaro, said: "In the joint venture, we are bundling expertise in engineering and in speciality chemicals. This means that we can offer even better tailored composite-matrix systems and even more competent service."

Evonik is contributing its expertise in amine hardener Vestamin for epoxy resin formulations, and isocyanate Vestanat for polyurethane formulations to the material developments of the new company. Combined with the development know-how of Forward Engineering (previously the engineering division of Roding Automobile) in composite construction, the result is a unique potential for the realisation of efficient lightweight construction solutions.

As MRC informed before, Evonik Resource Efficiency will invest in a capacity expansion of its performance foams business at its production site in Darmstadt, Germany. The investment will increase the output of the facility by about 20% as a first step. The Group will be adding production equipment to its operations complex that manufactures products marketed under the Rohacell brand. The expanded production capacity is expected to be operational by the second half of 2017.

Evonik, the creative industrial group from Germany, is one of the world leaders in specialty chemicals. Its activities focus on the key megatrends health, nutrition, resource efficiency and globalization. Evonik benefits specifically from its innovative prowess and integrated technology platforms. Evonik is active in over 100 countries around the world.

Shell divests oil sands interests in Canada

MOSCOW (MRC) -- Royal Dutch Shell plc has announced the signing of two agreements by Shell Canada Energy, Shell Canada Limited and Shell Canada Resources that will see Shell sell all of its in-situ and undeveloped oil sands interests in Canada and reduce its share in the Athabasca Oil Sands Project (AOSP) from 60% to 10%, as per the company's press release.

Shell will remain as operator of AOSP’s Scotford upgrader and Quest carbon capture and storage (CCS) project.

Under the first agreement, Shell will sell to a subsidiary of Canadian Natural Resources Limited its entire 60% interest in AOSP, its 100% interest in the Peace River Complex in-situ assets, including Carmon Creek, and a number of undeveloped oil sands leases in Alberta, Canada. The consideration to Shell from Canadian Natural is approximately USD8.5 billion (CD11.1 billion), comprised of USD5.4 billion in cash plus around 98 million Canadian Natural shares currently valued at USD3.1 billion. Canadian Natural is one of Canada’s largest energy companies and a leader in the oil sands, with a market capitalisation of approximately USD35 billion (CD46 billion).

Separately and under the second agreement, Shell and Canadian Natural will jointly acquire and own equally Marathon Oil Canada Corporation (MOCC), which holds a 20% interest in AOSP, from an affiliate of Marathon Oil Corporation for USD1.25 billion each, to be settled in cash.

The combination of these transactions will result in a net consideration of USD7.25 billion to Shell.

On completion of all transactions listed above, it is envisaged that Canadian Natural will be the operator of the AOSP upstream mining assets, and Shell will continue as operator of the Scotford upgrader and Quest CCS project, located next to the 100 percent Shell-affiliate owned Scotford refinery and chemicals plants. This arrangement is expected to allow Shell to maximise value in its competitive Canadian Downstream business and leverage proprietary technology. The transactions are expected to close mid-2017, subject to customary closing conditions and adjustments and regulatory approvals.

Shell Chief Executive Officer Ben van Beurden said: "This announcement is a significant step in re-shaping Shell’s portfolio in line with our long-term strategy. We are strengthening Shell’s world-class investment case by focusing on free cash flow and higher returns on capital, and prioritising businesses where we have global scale and a competitive advantage such as Integrated Gas and deep water. The proceeds will accelerate free cash flow and reduce gearing and make a meaningful contribution to Shell’s $30 billion divestment programme."

Shell and Canadian Natural have agreed that, subject to closing of the transactions and additional further conditions, Shell may swap its 50% purchased interest of MOCC for a 20% interest in assets of the Scotford upgrader and Quest CCS project. If the swap were to occur, Shell would fully exit AOSP’s mining operations and hold a 20% interest in the Scotford upgrader and Quest CCS project.

As MRC informed before, in March 2016, Royal Dutch Shell Plc lined up assets for a USD30 billion divestment program that might extend from the US and Trinidad to India following its record takeover of BG Group Plc.

Royal Dutch Shell, commonly known as Shell, is an Anglo–Dutch multinational oil and gas company headquartered in the Netherlands and incorporated in the United Kingdom.Created by the merger of Royal Dutch Petroleum and UK-based Shell Transport & Trading, it is the fourth largest company in the world as of 2014, in terms of revenue, and one of the six oil and gas "supermajors".

SCG enters into agreement to purchase QP stake in Long Son Petrochemicals

MOSCOW (MRC) -- Siam Cement Group (SCG), through its wholly-owned subsidiary Vina SCG Chemicals Co., has entered into a share purchase agreement with QPI Vietnam Ltd. (QPIV), a subsidiary of Qatar Petroleum (QP), to acquire QPIV's 25% interest in Long Son Petrochemicals Co. (LSP), reported Apic-online.

The transaction, valued at USD36.1-million, will increase SCG's direct and indirect stake in LSP to 71% from 46% currently. PetroVietnam holds the remaining 29% stake.

SCG last year said it expected to delay implementation of its planned LSP complex in Ba Ria-Vung Tau province, Vietnam, by six months, in order to finalize an agreement with a new partner, following Qatar Petroleum International's withdrawal of its 25% interest in the project.

LSP will include a 1-million-t/y ethylene cracker with flexible gas and naphtha feed, which will have the capacity to produce up to 1.6-million t/y of olefins, depending on the feedstock mix. It also includes the downstream production of 2.7-million t/y of polyethylene and polypropylene.

A final investment decision is expected in the first half of this year. Start-up anticipated in 2021.

As MRC wrote before, in April 2016, SCG said its planned petrochemical complex in Vietnam would be further postponed by six months, pending the conclusion of an agreement with a new joint-venture partner following the exit of Qatar Petroleum International (QPI). The USD4.5-billion fully integrated complex is to be the first of its kind in Vietnam and a key regional flagship for the Thai conglomerate.

SCG Chemicals is a subsidiary of SCG and is one of SCG’s 3 core businesses consisting of Chemicals, Paper and Cement-Building Materials. SCG embarked upon the chemicals business in 1989. At present, SCG Chemicals manufactures and supplies a full range of petrochemical products ranging from upstream petrochemicals such as Olefins, intermediate petrochemicals such as Styrene Monomer, PTA, and MMA, to downstream petrochemicals such as Polyethylene, Polypropylene, Polyvinyl Chloride, and Polystyrene resins. SCG Chemicals is now one of the largest integrated petrochemical companies in Thailand and a key industry leader in the Asia-Pacific region.