OMV to start development of Band Karkheh Oilfield in Iran soon

MOSCOW (MRC) -- The executive manager of the project to develop Band Karkheh oilfield announced that the OMV, the international, integrated oil and gas company based in Vienna, will start developing the oilfield in the near future, said Farsnews.

"The OMV will soon start development activities in Band Karkheh oilfield," Alireza Zamani said on Tuesday. Noting that the OMV company has discovered the oilfield, he said, "The operation was carried out based on a discovery and development contract between the National Iranian Oil Company (NIOC) and the OMV firm."

In a relevant development in January, an Iranian oil exploration and production (E&P) signed a memorandum of understanding (MoU) with Austria's OMV for cooperation in upstream oil projects in Iran.

OMV and Dana Energy company, a leading Iranian company active in oil and gas upstream field development activities, signed a Memorandum of Understanding on January 20, 2017.

The parties agreed to evaluate possible upcoming development and re-development projects in the Iranian oil and gas industry. The document was signed in Vienna by S. Mostafa Khoee, Dana Energy Board Member and E&P President, and Johann Pleininger, OMV Executive Board member responsible for Upstream.

OMV has a long lasting partnership with Iran and entered the country in 2001. In 2016 the NIOC and OMV signed a Memorandum of Understanding concerning the evaluation of various fields in the Zagros area in the West of Iran, for potential future development. OMV also signed a joint study agreement with NIOC Exploration for the Fars area.

OMV entered Iran in 2001 as the operator of the Mehr exploration block in western Iran, leading to a successful discovery (Band Karkheh) in 2005. Most recently, in his announcement of OMV’s strategy on February 18, 2016, OMV CEO Rainer Seele has set Iran as one of the three development areas in the upstream portfolio.
MRC

MOSCOW (MRC) -- AkzoNobel’s Specialty Chemicals business has taken another significant step in cementing its industry leadership in organic peroxides with the completion of an expansion project at its Polymer Chemistry production facility in Los Reyes, Mexico, as per the company's press release.

The investment will increase the company’s peroxyester capacity in North America by 40%, substantially increasing the supply of essential ingredients for customers in the polymer industry.

"We are seeing increasing demand from our customers in North America and this expansion allows us to maintain our leading position as a reliable supplier of organic peroxides," explained Johan Landfors, Managing Director of AkzoNobel’s Polymer Chemistry business and the company’s North American regional head.

Peroxyesters, also known as peresters, are mostly used in the manufacture of polyvinyl chloride (PVC), low density polyethylene (LDPE), acrylics, styrenics and other thermoplastics. AkzoNobel offers the world's largest range of peresters under the well-known Trigonox trademark.

Since 2015, AkzoNobel has invested more than EUR85 million in upgrading technologies to better serve its customers in the polymer industry, increasing capacity and repositioning its global manufacturing footprint at existing sites in Mexico, the Netherlands, Belgium, China, Italy, Brazil and the US.

"This has been a major project which adds further momentum to our strategy to expand in our key markets," added Thierry Vanlancker, AkzoNobel’s Executive Committee member responsible for Specialty Chemicals. "We will continue to focus on operational excellence to provide reliable supplies and accommodate the growth of our customers."

As MRC wrote before, in January this year, AkzoNobel completed another EUR22 million expansion project at the Los Reyes plant to increase production capacity. The site has been operational since 1970 and has experienced substantial growth. Los Reyes is also the headquarters for AkzoNobel’s Specialty Chemicals business in Mexico, employing more than 230 people. Overall, the company has more than 500 employees in Mexico across three production sites.

Akzo Nobel N.V., trading as AkzoNobel, is a Dutch multinational, active in the fields of decorative paints, performance coatings and specialty chemicals. Headquartered in Amsterdam, the company has activities in more than 80 countries, and employs approximately 55,000 people.
MRC

MOSCOW (MRC) -- Japan's Mitsui Chemicals targets to increase the operating rates of its 300,000 mt/year metallocene hexene-based linear low density polyethylene (MLLDPE) plant on Singapore's Jurong Island to 100% of capacity in fiscal 2020-2021 (April-March), President Tsutomu Tannawa said Monday, reported Apic-online.

He was speaking at a news conference on the company's mid-term management plan.

Tannawa said the plant, which started commercial operations in August 2016, was not able to run at full capacity due to limited ethylene supply.

The plant was likely to operate at below 100% of capacity before that because of a weak market, Tannawa said.

The plant is owned by Prime Evolue, a joint venture by Mitsui Chemicals and Prime Polymer.

As MRC informed earlier, Germany-based Linde, a leading industrial gases company, and Japan’s Mitsui Chemicals plan to invest USD4 billion into petrochemical projects in Iran.

Mitsui Chemicals,a Japanese chemical company, is a part of the Mitsui conglomerate. The company has a turnover of around 15 billion USD and has business interests in Japan, Europe, China, Southeast Asia and the USA. The company mainly deals in performance materials, petro and basic chemicals and functional polymeric materials.
MRC

MOSCOW (MRC) -- Solvay has completed the divestment of its cellulose acetate tow business, Acetow, to private equity funds managed by Blackstone, said the prodcer on its site.

The transaction is based on an enterprise value of around EUR1 billion, resulting in net financial debt reduction of some EUR0.7 billion.

As MRC informed before, in late 2016, Solvay completed the sale of its 70.59% stake in Solvay Indupa to Brazilian chemical group Unipar Carbocloro, following the approval earlier this month of the Brazilian antitrust authority CADE.

Besides, in early July 2016, Solvay completed the divestment of its shareholding in Inovyn (London), bringing to an end Solvay's chlorvinyls joint venture with Ineos. Solvay received exit cash proceeds amounting to EUR335 million (USD370.7 million). The dissolution of the jv follows regulatory clearances from the relevant authorities.

Inovyn was formed on 1 July 2015 as a jv between Ineos and SolVin, a subsidiary of Solvay. Solvay and Ineos signaled their decision to end their chlorvinyls jv in March this year.

Solvay is headquartered in Brussels with about 27,000 employees spread across 58 countries. It generated pro forma net sales of EUR10.9 bn in 2016, with 90% made from activities where it ranks among the world’s top 3 players.
MRC

MOSCOW (MRC) -- SK Capital Partners, a private investment firm with a disciplined focused on the specialty materials, chemicals and pharmaceutical sectors, announced today that it has partnered with management to recapitalize Tri-Tex Co. Inc., a leading Canadian specialty chemicals manufacturer and value-added distributor focused on the adhesives, coatings and sealants, surfactants, and textile chemical markets, as per Businesswire.

SK Capital has acquired a majority control position with the founders retaining a significant ownership stake in the ongoing entity.

Aaron Davenport, a Managing Director of SK Capital, commented, "SK Capital is pleased to partner with Tri-Tex, a Company with a strong reputation for product innovation, customer service and application-specific solutions. We have a long-standing relationship with Naim and Natalie Laham, under whose leadership Tri-Tex has flourished into a market leader."

Barry Penney, a Principal of SK Capital, added, "We see multiple opportunities for Tri-Tex to collaborate with the existing SK Capital portfolio including leveraging our combined purchasing power, supply chain initiatives, sales & products agreements, and new product collaboration. Moreover, we believe the Company is ideally positioned to capitalize on the fragmented nature of its core markets by growing through highly accretive acquisitions to augment its geographic scope and product portfolio."

Natalie Laham, CEO of Tri-Tex, commented, "We are excited to partner with SK Capital, a firm ideally suited to support our next phase of growth given their significant experience in the specialty chemicals sector and proven track record of growing businesses. With SK’s support and active engagement, we look forward to accelerating our growth by providing leading innovative solutions to our expanding base of customers."

Morgan, Lewis & Bockius LLP served as legal counsel to SK Capital for the transaction. CIBC Mid-Market Investment Banking acted as exclusive financial advisor to Tri-Tex. CIBC provided committed debt financing for the transaction.

SK Capital is a private investment firm focused on the specialty materials, chemicals and pharmaceutical sectors. The firm builds strong and growing businesses that generate substantial long-term value for its investors. SK Capital utilizes its industry, operating and investment experience to identify opportunities to transform businesses into higher performing companies with improved strategic positioning, growth, profitability and risk profiles. The firm currently has approximately USD1.9 billion of assets under management and its portfolio companies generate revenues of over USD5.0 billion annually and employ approximately 8,700 people.

Tri-Tex is a leading producer of high-performance specialty chemicals focused on the adhesive, sealants, surfactants and textile & paper chemical markets. Headquartered in St-Eustache, Quebec, Tri-Tex’s comprehensive suite of products are critical precursors used to develop every-day consumer and industrial applications in a variety of end-markets including paints, printing, personal care, hygiene, construction, textile and marine.
MRC