Iraq calls for bids for new oil refinery in Basra

MOSCOW (MRC) -- Iraqi's oil ministry last Thursday asked foreign companies and investors to bid for a project to build and operate a 300,000-bpd export-oriented refinery in Fao, near the southern city of Basra, reported Reuters.

Bidding documents provide for two investment models—build-own-operate and build-operate-transfer, said the ministry in a statement.

They will be available until May 31 and the bidding will close on Aug. 1, it said.

OPEC's second-largest oil producer after Saudi Arabia, Iraq's refining capacity was curtailed when Islamic State overran its largest oil processing plant in Baiji, north of Baghdad, in 2014.

Iraqi forces recaptured it in 2015 but it sustained heavy damage in the fighting.

The country now relies on the Doura refinery in Baghdad and the Shuaiba in Basra.

As MRC informed previously, Iraq's oil ministry said on Thursday it had started loading a tanker with 2 MMbbl of crude oil bound for Egypt, marking the first shipment under a bilateral agreement. Under a one-year agreement reached last month between Iraq and Egypt, Iraq will sell 12 MMbbl of oil to Egypt, the ministry said.
MRC

MOSCOW (MRC) -- Amec Foster Wheeler’s completions and commissioning company, qedi, has signed an extension of its global Master Service Agreement with BP, which it has successfully delivered since 2012, as per Hydrocarbonprocessing.

The new contract with BP will run for two years through December 2019. qedi will continue with the exclusive provision of completions and commissioning support services to BP on a global basis. The agreement also includes all licenses and support for qedi’s GoTechnology products, as well as completions and commissioning manpower services.

This completions and commissioning support service includes the management and delivery of projects from mechanical completion and pre-commissioning through to handover.

"qedi has been providing completions and commissioning support services to BP for over 15 years," Barry Cann, qedi Managing Director said. "We’re delighted to be awarded an extension with BP, which is a vote of confidence in our relationship with the company, the value we add, our unrivalled capabilities and our skilled team. We look forward to continue working with BP on their projects around the world."

As MRC wrote earlier, in March 2017, Amec Foster Wheeler announced the award of a five-year global Enterprise Framework Agreement (EFA) with Shell Global Solutions International, B.V. to provide engineering, procurement and construction management (EPCM) services for its downstream projects worldwide.

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) -- A fire erupted at a refinery of Russia's No. 2 oil producer Lukoil in the city of Perm in the Urals region, a local branch of the company, Lukoil Permnefteorgsintez said on Friday, reported Reuters.

The fire was localised at around 0300 GMT and an open combustion was extinguished two hours later, Lukoil's press service said on the local emergency service website.

As MRC informed previosly, in early February 2017, the Antimonopoly Committee of Ukraine gave permission for the mediated purchase of plant Karpatneftekhim from the Russian group Lukoil to the Ukrainian. The Antimonopoly Committee gave permission for the purchase of a 75% stake in Lukoil Chemical B.V. (Netherlands), which owned 100% of LLC "Karpatneftekhim" (Kalush, Ivano-Frankivsk region). According to the committee, the company Techinservice Limited (London, UK) was allowed to sell more than 25% of the Dutch Chemical Lukoil to the Ukrainian citizen through Xedrian Holding Ltd (Cyprus) - more than 50% Lukoil Chemical. And in late February 2017, Lukoil completed the sale of Karpatneftekhim, Ukraine's largest producer of polymers.

Lukoil is one of the leading vertically integrated oil company in Russia. The main activities of the company include operations for exploration and production of oil and gas, production and sale of petroleum products. Lukoil is the second largest private oil Company worldwide by proven hydrocarbon reserves. In Lukoil structure includes one of the largest Russian and Ukrainian petrochemical industries Stavrolen and Karpatneftekhim.
MRC

MOSCOW (MRC) -- French oil and gas company Total said on Friday it was gradually shutting down production at its 117,000-bpd Feyzin refinery and petrochemical platform near Lyon in the east of France due to a strike, said Reuters.

Some 190 workers at the refinery, which employs around 600, began the strike on Thursday evening after talks with management reached a deadlock over bonuses and other issues, a spokeswoman for the company said.

Talks are ongoing with the Force Ouvriere, the dominant trade union at the refinery which called the strike, but it was unclear when the strike will end, the spokeswoman said.

The union could not be reached for comment.

The shutting down and restart of a refinery takes several days. Total said there was no risk of fuel and products shortage because it will continue to supply clients from other sources.

The company, Europe's biggest refiner, operates five refineries in France.
MRC

MOSCOW (MRC) -- Honeywell announced the commissioning and operation of the largest operating single-train propane dehydrogenation unit in China, said Hydrocarbonprocessing.

Yantai Wanhua Polyurethanes Group Co. Ltd., is using Honeywell UOP's C3 Oleflex process technology to convert propane into 750,000 metric tpy of propylene, the primary component used for making plastics, packaging and synthetic fibers. With this unit, the global production capacity of Oleflex technology is now approximately 6.8 MMtpy.

"As China's largest Oleflex unit, this represents a significant expansion in the country's propylene capacity and a big step toward meeting local demand for propylene," said Mike Millard, vice president and general manager of Honeywell UOP's Process Technology and Equipment business. "No other technology works as efficiently and produces as much high-quality propylene as the Oleflex process."

China consumes more than 15% of the world's propylene and its demand is growing more than 4% per year, according to the US Energy Information Administration.

Since 2011, Honeywell UOP's Oleflex technology has been chosen for 40 of the world's 47 new propane and isobutane dehydrogenation projects licensed worldwide.

In addition to technology licensing, Honeywell UOP provided the engineering design, equipment, staff training, technical service and catalyst for the project. The Oleflex unit is part of a large complex that also includes Honeywell UOP LPG hydrotreating technology, a Butamer C4 isomerization unit, and PSA, or pressure swing adsorption, units to produce high-purity hydrogen.
MRC