Chevron confirms sale of its South African assets to Sinopec

MOSCOW (MRC) -- Chevron Global Energy has confirmed that it has signed a sales and purchase agreement with a wholly-owned subsidiary of China's Sinopec for Chevron's assets in South Africa and Botswana, reported Reuters.

Chevron said in a statement the deal hinged on regulatory approval. Sinopec said earlier it has agreed to pay almost USD1 billion for a 75% in Chevron's South Africa assets and unit in neighbor Botswana, securing its first refinery on the continent.

As MRC informed before, in July 2016, Chevron approved USD37bn Kazakhstan oilfield expansion. A USD36.8bn expansion of the Tengiz oilfield in Kazakhstan, the largest investment by private sector oil companies this decade, was 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. The green light for the plan is a rarity at a time when oil companies worldwide have been slashing capital spending and holding back on new commitments to large developments in particular. The decision to go ahead is a sign of the importance of Kazakhstan to Chevron's long-term future.

The investment will add 260,000 barrels a day of crude to production at Tengiz. That would increase the output at TCO, the Chevron-led consortium that runs the field, by 44% from its average of 595,000 b/d last year. The expansion is scheduled to deliver oil from 2022.

Chevron is the second-largest US oil group by production and market capitalisation, after ExxonMobil. Chevron Phillips Chemical (part of Chevron), headquartered in The Woodlands, Texas (north of Houston), US,l is one of the world’s top producers of olefins and polyolefins and a leading supplier of aromatics, alpha olefins, styrenics, specialty chemicals, piping, and proprietary plastics. Chevron and Phillips 66 each own 50% of Chevron Phillips Chemical.
MRC

MOSCOW (MRC) -- Haldia Petrochemicals Ltd (HPL) is in plans to brought on-stream its HDPE/LLDPE swing plant at the petrochemical complex located in the eastern Indian state of West Bengal, as per Apic-online.

A Polymerupdate source in India informed that the plant is likely to be restarted in end-April 2017 following an unplanned outage. The company has encountered technical glitch at the LLDPE line of the swing plant in end-February 2017.

Located at Haldia in the eastern Indian state of west Bengal, the complex can produce 700,000 mt/year of ethylene and 350,000 mt/year of propylene and provides feedstock to a 330,000 mt/year high density PE plant, a 370,000 mt/year HDPE/linear low PE swing plant and a 350,000 mt/year polypropylene unit.

As MRC informed earlier, in October 2016, HPL reported a massive fire at the petrochemical complex located in the eastern Indian state of West Bengal.

Haldia Petrochemicals Ltd is a modern naphtha based petrochemical complex at Haldia, West Bengal, India. Haldia has played the role of a catalyst in emergence of more than 500 downstream processing industries in West Bengal with a capacity to process more than 3,50,000 TPA of polymers, among which are polyethylene (PE) and polypropylene (PP).
MRC

MOSCOW (MRC) -- Nova Chemicals Corporation and Borealis AG have signed a preliminary agreement to form a joint venture (JV) with Total Petrochemicals and Refining USA, Inc. that will develop and own a new light feed cracker and a new Borstar polyethylene (PE) facility in Bayport, Texas, as per Nova Chemicals' press release.

Key aspects of the JV will include: building a new 2.2 b lb (1000 ktpa) ethylene cracker in Port Arthur, Texas; building a new 1.35 b lb (625 ktpa) Borstar PE plant in Bayport, Texas and Total’s existing Bayport PE facility, total capacity 880 m lb (400 ktpa).

The ethylene cracker and Borstar PE unit are expected to start-up in late 2020. A final investment decision is expected in late 2017, pending NOVA Chemicals’ Board and regulatory approvals and execution of definitive agreements.

The JV is expected to create significant synergies by enabling strong integration of the value chain and the first-time use of the proprietary Borstar PE process technology in the Americas. It is also expected to provide competitive export access to markets outside of North America to help meet the growing global demand for PE.

"This opportunity will complement Nova Chemicals’ existing asset structure in Canada and broaden our PE product slate as we continue to grow our business in the Americas to deliver products that make everyday life healthier, safer and easier," stated Todd Karran, President and CEO, Nova Chemicals. "It also paves the way for NOVA Chemicals to collaborate further with Borealis as part of the IPIC family of companies," continued Karran.

"Working in a JV with Nova Chemicals and Total on a cost effective brownfield investment project, integrated with a cracker is an attractive opportunity. We can also leverage our proven technology and benefit from large scale experience gained in other projects (e.g., Borouge) and develop the project together with Nova Chemicals," said Borealis CEO Mark Garrett.

As MRC reported earlier, Nova Chemicals Corporation, a leading supplier of PE in the Americas, started up of its new world-scale linear low density polyethylene (LLDPE) gas phase reactor at its Joffre, Alberta site, in December 2016.

Nova Chemicals develops and manufactures chemicals and plastic resins that make everyday life safer, healthier and easier. Our employees work to ensure health, safety, security and environmental stewardship through our commitment to sustainability and Responsible Care. Nova Chemicals, headquartered in Calgary, Alberta, Canada, is a wholly owned subsidiary of the International Petroleum Investment Company (IPIC) of the Emirate of Abu Dhabi, United Arab Emirates.

Borealis is a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers. With its Head Office in Vienna, Austria, the company currently has around 6,600 employees and operates in over 120 countries. Borealis generated EUR 7.2 billion in sales revenue and a net profit of EUR1,107 million in 2016. The International Petroleum Investment Company (IPIC) of Abu Dhabi owns 64% of the company, with the remaining 36% belonging to Austria-based OMV, an integrated, international oil and gas company. Borealis provides services and products to customers around the world in collaboration with Borouge, a joint venture with the Abu Dhabi National Oil Company (ADNOC).

Total is a global integrated energy producer and provider, a leading international oil and gas company, and a major player in solar energy with SunPower and Total Solar. Our 98,000 employees are committed to better energy that is safer, cleaner, more efficient, more innovative and accessible to as many people as possible. As a responsible corporate citizen, we focus on ensuring that our operations in more than 130 countries worldwide consistently deliver economic, social and environmental benefits.
MRC

MOSCOW (MRC) -- China Petroleum and Chemical Corp reported that 2016 net profit rose 44% to USD6.74 billion from a year earlier on the back of strong performances in refining and chemicals, said Reuters.

The state-owned company, known as Sinopec Corp, saw fourth quarter net profit jump to 17.25 billion yuan from 9.9 billion yuan in the third quarter, it said in a statement to the Shanghai Stock Exchange. For 2015, Asia's largest refiner reported total net profit of 32.3 billion yuan.

Sinopec said that in 2016, oil and gas production fell 8.6% to 431.29 million barrels of oil equivalent (BOE), versus 471.91 million a year earlier.

Crude oil production was down 13.2% to 303.5 million BOE as near-decade low oil prices forced the closures of costly wells, while natural gas rose 4.3%. Refinery throughput fell 0.4% compared with 2015 to 235.5 MMt, or about 4.71 MMbpd. Its total fuel sales grew 2.9%.

Fuel demand growth in China, the world's second-largest consumer, moderated along with the broader economy. But domestic competition heated up following moves to allow more than a dozen independent refineries to import crude oil for the first time since late 2015.

The chemicals segment recorded a strong performance as the firm optimized production to favor higher-value products, a trend Sinopec expects to boost profitability in the coming years.

The company said it expects global oil prices to fluctuate at lower levels this year, while domestic oil products would continue to grow and the consumption structure would be further adjusted.

Sinopec plans to boost capital expenditure in 2017 to 110.2 billion yuan, up 44% from last year's 76.46 billion yuan. This year's refinery throughput is set to reach 240 MMt, and production of oil products will reach 150 MMt.

As per MRC, China Petroleum and Chemical Corp started operating a major crude oil pipeline that connects eastern Jiangsu province with refineries in south China.

China Petrochemical Corporation (Sinopec Group) is a super-large petroleum and petrochemical enterprise group established in July 1998 on the basis of the former China Petrochemical Corporation. Sinopec Group's key business activities include the exploration and production of oil and natural gas, petrochemicals and other chemical products, oil refining.
MRC

MOSCOW (MRC) -- Axalta Coating Systems is exhibiting a selection of its Alesta powder coatings colours and textures at the celebrated Saint-Etienne International Design Biennale, taking place in the Cite du Design in St. Etienne, France, March 9 to April 9, 2017, said Coatingsworld.

Cite du Design is a renowned public venue dedicated to design and innovation, in which the prominent school of higher education Saint-Etienne Higher School of Art and Design is located. It also serves as the home of the Materiautheque, a material resource centre. The school is a hub for design research and innovative thinking related to industry, the public sector, design and education. With more than 150 years in the coatings industry, Axalta is delighted to share its legacy of color technology and innovation during the Biennale with a wide array of architects and designers who rely on Alesta coatings to provide vibrant colors and effects to their materials.

To highlight some of these applications during the event, Axalta is displaying figurines and colour cards coated with Alesta products at the Materiautheque as part of the school’s commitment to serve as a resource to designers, manufacturers, researchers and students. Pascal Nicard, Regional Sales Director for Axalta’s powder coatings in France, the Middle East and Africa, says, "Axalta has developed a close relationship with the Cite du Design, which is situated near our Montbrison facility, one of our largest Alesta powder production sites. For this year’s Biennale, to illustrate how our products look, we have created some colourful, miniature 3-D Axalta logos that have been sprayed with Alesta powder coatings. It’s exciting to be part of this event, which draws designers, entrepreneurs, students and members of the public from around the globe."

The Biennale is in its 10th year and this bi-annual event has become one of the most eclectic design events in France. The event aims to highlight the importance of design in every aspect of daily life, to raise its public awareness, and to make design accessible to all; it’s also a way to explore the evolution and the future of design. This is done through multiple exhibitions, conferences, symposiums and debates that look at contemporary design trends and design issues.

MRC