Surgutneftegaz offers up to 3.1 MMt of diesel from Primorsk

MOSCOW (MRC) — Russia’s Surgutneftegaz is offering up to 3.1 MMt of ultra-low sulfur diesel at a tender for delivery in January-June 2018 from the Baltic Sea port of Primorsk, industry sources told Reuters .

The company is offering between 350,000 t and 540,000 t of 10 ppm diesel per month produced at its Kirishi refinery. The tender closes on Nov. 8.

Previously, Surgutneftegaz has sold Vitol up to 2.5 MMt of ultra-low sulfur diesel via a tender for loadings in July-December from Primorsk.
MRC

MOSCOW (MRC) -- Negotiations over November shipments of suspension polyvinyl chloride (SPVC) began among Russian producers and converters on 27 October. All producers announced a Rb6,000-7,000/tonne price reduction from October, according to ICIS-MRC Price report.

In August-October, high seasonal demand for finished products and scheduled shutdown for maintenance amid insignificant imports allowed Russian producers to achieve an overall increase of Rb7,000-8,000/tonne in domestic PVC prices. By November, the situation had changed radically both with demand for polyvinyl chloride (PVC) and with prices in foreign markets, particularly, in China. Therefore, Russian producers were forced to significantly reduce their PVC prices for November shipments.

Insignificant quantities of imported material and scheduled outages at several Russian plants forced many converters to purchase additional volumes of resin in August-September, which partly caused a deficit and a dynamic price increase. Demand for finished products from PVC remained strong in October, but many converters had already reduced their purchasing, realizing that will be price cuts in November.

Kaustik, Volgagrad was the last producer that shut down its PVC production for a turnaround, the outage was quite long and took place from 26 September to 18 October. But the outage at Volgograd plant virtually did not affect the market balance, on the contrary, there was even a surplus of material in the resin with K=67 segment.

In the second half of October, Chinese producers significantly decreased their export prices, the reduction in prices of acetylene PVC averaged USD100/tonne compared to the level of the second half of September. Some Russian companies began to contract resin for deliveries from China.

The danger of an influx of imports from China and weaker demand from the domestic market made some Russian producers reduce their PVC prices in the second half of October. Some producers cut them by an average of Rb3,000/tonne.

The further reduction in demand under the pressure of seasonal factors and danger of the influx of Chinese acetylene PVC forced producers to substantially reduce their November contract prices. Many converters announced a reduction in this month's processing volumes of resin, some companies were slow to conclude deals, expecting further price cuts in the second half of the month.

Overall, deals for November shipments were done in the range of Rb66,000-68,500/tonne CPT Moscow, including VAT, for K=65/67 and for quantities up to 500 tonnes. Negotiations over prices for resin with K=70 started from Rb66,500/tonne CPT Moscow, including VAT, and higher.
MRC

MOSCOW (MRC) -- Ineos has completed its acquisition of the Forties Pipeline System (FPS) and associated pipelines and facilities from BP, said the producer in its press release.

The 235-mile pipeline system links 85 North Sea oil and gas assets to the UK mainland and the Ineos site in Grangemouth, Scotland, delivering almost 40% of the UK’s North Sea oil and gas production.

Ownership and operation of FPS, the Kinneil gas processing plant and oil terminal, the Dalmeny storage and export facility, sites at Aberdeen, the Forties Unity Platform and associated infrastructure has now transferred to INEOS FPS, together with approximately 300 personnel.

Andrew Gardner, CEO INEOS FPS said, "Our acquisition of the Forties Pipeline System and associated assets together with its highly skilled workforce is significant and strategic. It demonstrates INEOS’ commitment to securing a competitive long-term future for this critical piece of oil and gas infrastructure and provides the platform to potential future offshore INEOS investments. We will bring our focus and proven track record on safety, reliability and excellence in operations and apply them throughout the FPS business."

The deal consolidates INEOS’ position as a top ten company in the North Sea. It further expands the INEOS oil and gas business interests following the acquisitions of the Breagh and Clipper South gas fields in the Southern North Sea from Letter1 in 2015 and the Dong Oil and Gas business from DONG Energy at the end of September this year. Twenty per cent of the oil that passes down the Forties pipeline feeds the Petroineos refinery that in turn provides more than 80% of Scotland’s transport fuels.

As MRC reported earlier, in April 2016, Ineos said the second manufacturing unit at Grangemouth’s KG ethylene plant had been brought back to life eight years after being mothballed. Ineos then said it had completed successful operational trials as it prepared to receive shale gas ethane from the US as petrochemical feedstock. The Ineos investment should bring US shale gas economics to Europe. The project includes contracts to acquire gas from the Marcellus Shale in Western Pennsylvania; connection to the new, 300-mile Mariner East pipeline to bring the gas to the Marcus Hook deep water terminal near Philadelphia; the design and commissioning of eight Dragon-class ships that will create a virtual pipeline across the Atlantic; and the construction of a new import terminal, including the biggest shale gas storage tank in Europe at Grangemouth.

The new import terminal at Grangemouth will also benefit the Fife ethylene plant in Mossmorran, Scotland, after it was announced that the owners of the plant had agreed a long-term sale and purchase agreement to secure ethane from mid-2017.

Ineos Group Limited is a privately owned multinational chemicals company consisting of 15 standalone business units, headquartered in Rolle, Switzerland and with its registered office in Lyndhurst, United Kingdom. It is the fourth largest chemicals company in the world measured by revenues (after BASF, Dow Chemical and LyondellBasell) and the largest privately owned company in the United Kingdom.
MRC

MOSCOW (MRC) -- Imports of unmixed polyvinyl chloride (PVC) into Kazakhstan decreased in January-September 2017 by 5% year on year to 41,700 tonnes, reported MRC analysts.

PVC imports into Kazakhstan decreased in September, reaching 3,400 tonnes compared with 7,100 tonnes in August.
Total SPVC imports to Kazakhstan reached about 41,700 tonnes in the first nine months of this year, compared to 43,900 tonnes in the same period in 2016.

Due to the geographical position, the main suppliers of PVC to Kazakhstan were Chinese producers, with the share of about 92% of the local market over the stated period.

PVC shipments from Russia have grown significantly more than 3,400 tonnes this year.
MRC

MOSCOW (MRC) -- RockRose Energy has signed a sale and purchase agreement to acquire the entire issued share capital of Idemitsu Petroleum UK from Idemitsu Kosan, a Japanese corporation, said Drillingandproduction.

The Acquisition will be funded out of the existing facilities and cash resources of the Company. The Acquisition will be funded out of the existing facilities and cash resources of the Company. Completion of the Acquisition is conditional upon confirmation from the UK Oil and Gas Authority that there is no objection to change of control.

The Acquisition also brings with it a number of key employees and its premises in London, which will enhance RockRose's internal expertise providing continuity on the acquired assets and assisting with the management of the wider portfolio.

On closure of this Acquisition and previously announced transactions, RockRose will have a projected 6,200 - 7,000 boepd of production in 2018 on an aggregated basis.

Andrew Austin, Chairman of RockRose said: "RockRose is continuing to deliver on its stated strategy of building a business through the acquisition of mature producing assets. We believe that this acquisition is a significant one for the Company and that this portfolio also has a lot of potential for extended field life and gives Rockrose access to significant tax losses."

"We continue to review further acquisition opportunities in North West Europe and, post completion of this along with the previously announced Maersk, Sojitz and Egerton transactions by the end of this year, will have established a material business in the North Sea, set to deliver value to our shareholders."

The Acquisition constitutes a reverse takeover for the purposes of the listing rules, the Company has requested that the UK Listing Authority to suspend the listing of the shares with immediate effect. The Company will proceed to prepare and publish a new prospectus in the coming weeks which will include a competent persons report on the assets of the Company as enlarged by the Acquisition.
MRC