Bahrain gets a boost of USD6 billion in oil and gas projects

MOSCOW (MRC) -- Oil and gas projects worth about USD6 billion are underway or soon to begin in Bahrain. Speaking to the media on the sidelines of a conference, as per Hydrocarbonprocessing.

The Bapco Modernization Programme is on track for completion in 2022, he said with the $4.2bn engineering, procurement, construction and commissioning turnkey contract awarded last month to a consortium led by TechnipFMC. The signing of the contract is expected shortly, he added. The program entails the expansion of the capacity of the existing Sitra oil refinery from 267,000 up to 360,000 bpd besides improving energy efficiency, valorisation of the heavy part of the crude oil barrel (bottom of the barrel), enhancing products and meeting environmental compliance.

The minster also said Bahrain is looking for more partners to develop the Bahrain oilfield, which was exited by Mubadala and Occidental Petroleum in 2016.

The National Oil and Gas Authority (Noga) this year will complete major projects, including the new 350,000 bpd pipeline (A-B) between Bahrain and Saudi Arabia that will replace the existing 230,000 bpd link, the minister said.

“More than 50 per cent of the construction and modernization of the pipeline has been completed and the pipeline is now being laid underground in the south of Bahrain. The project is moving steadily according to plan and budget,” he said.
MRC

Kazakhstan says freeze lifted on USD22 billion in oil fund assets

MOSCOW (MRC) -- A Dutch court has lifted a freeze on Kazakh sovereign fund's assets worth USD22 billion, the Central Asian nation's Justice Ministry said on Wednesday, reported Reuters.

The assets held by the fund's custodian, Bank of New York Mellon, were frozen last October after a lawsuit by Moldovan businessman Anatolie Stati who seeks to enforce a USD500MM arbitration ruling against the Astana government.

The freeze had shocked the oil-exporting nation and the sovereign fund industry, partly because of the disproportion between the size of the claim and that of the frozen assets.

Stati, his son Gabriel and their companies were investors in Kazakhstan's oil and gas industry. They say they have been subjected to harassment from the state aimed at forcing them to sell their investments cheaply.

Kazakhstan denies the allegations, but Anatolie and Gabriel Stati and two of their companies - Ascom Group S.A. and Terra Raf Trans Traiding Ltd, have won an international arbitration award of around USD500MM against the government. Kazakhstan has refused to pay, accusing Stati of using fraudulent means to secure a favorable arbitration ruling and filing lawsuits against him.

The Justice Ministry said in a statement on Wednesday it was also seeking the reversal of a court ruling in Belgium which had frozen some Kazakh assets.
MRC

SABIC acquires strategic stake in Clariant from 40 North and Corvex

MOSCOW (MRC) -- SABIC, a world leader in chemicals, has agreed to acquire approximately 83 million shares in Clariant, a global specialty chemicals company, from 40 North and Corvex Management, as per Hydrocarbonprocessing.

The acquisition of this approximately 24.9% stake in Clariant will make SABIC the largest Clariant shareholder, and represents another key milestone in SABIC's growth and diversification strategy to become the preferred world leader in chemicals.

This acquisition is part of SABIC's long-term growth strategy to remain committed to product differentiation and creating value for its customers. Clariant is complementary to SABIC's existing specialties business and is well in line with SABIC's strategy of opening up new growth opportunities in specialty chemicals.

SABIC currently has no plans to launch or otherwise effect a full takeover of Clariant.

SABIC and Clariant have already had a successful relationship in their joint venture, Scientific Design, a process technology and catalyst development company. SABIC is looking forward to engaging in discussions with the company.

David Winter, Co-CEO of Standard Industries and Co-CIO of 40 North, said, "SABIC is an established global leader in the chemicals industry with a world-class management team and a long-term, sophisticated vision for the future. We are confident that this transaction allows Clariant to continue on its path to becoming a global specialty chemicals leader."

David Millstone, Co-CEO of Standard Industries and Co-CIO of 40 North commented, "We have been significant shareholders of Clariant since 2016. SABIC's strategic investment in Clariant is a successful outcome and we are pleased to have played a role in making it possible."

The closing of the transaction is subject to completing regulatory approvals.

As MRC informed before, in September 2017, SABIC continued its global expansion with the inauguration of a new polypropylene (PP) pilot plant in Geleen, the Netherlands, and the announcement of a new investment in a state-of-the-art PP extrusion facility to be built at the same location.

Saudi Basic Industries Corporation (SABIC) ranks among the world's top petrochemical companies. The company is among the world's market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers.
MRC

PTTGC awards olefin plant USD790MM contract to Samsung

MOSCOW (MRC) -- Thai PTT Global Chemical Pcl (PTTGC) plans to invest USD985 million in a new olefins plant, reported Hydrocarbonprocessing with reference to the company's statement.

PTTGC, the petrochemicals arm of state-owned energy giant, PTT Pcl, n a Jan. 23 filing to the Stock Exchange of Thailand, said that the investment would increase its nameplate capacity to 3.74 million metric tons of olefins a year, up from 2.99 million metric tonnes a year.

The new plant would use naphtha and liquefied petroleum gas as its main feedstock and be located in the Map Ta Phut industrial estate on Thailand's eastern seaboard, the company said in a statement. The new plant is expected to begin commercial operation in 2020, PTTGC said.

PTTGC awarded Samsung Engineering Co., Ltd. the USD790 million engineering, procurement, construction and commissioning (EPCC) contract for its Olefins Reconfiguration Project (ORP), Samsung Engineering reported Wednesday.

As MRC wrote before, PTT is on track to start commercial operations at its new 400,000 mt/year metallocene C6 linear low density polyethylene plant at Map Ta Phut, Thailand, in the first quarter of 2018.

PTT Global Chemical is a leading player in the petrochemical industry and owns several petrochemical facilities with a combined capacity of 8.45 million tonnes a year.
MRC

Unplanned outage reported at No. 2 cracker of SKGC

MOSCOW (MRC) -- SK Global Chemical (SKGC) has taken its No. 2 naphtha cracker off-stream for a maintenance turnaround, as per Apic-online.

A Polymerupdate source in South Korea informed that the company has undertaken an emergency shutdown at the cracker on January 24, 2018. The details on duration of the shutdown could not be ascertained.

Located in Ulsan, South Korea, the No. 2 cracker has a production capacity of 690,000 mt/year.

As MRC informed before, in October 2017, SK Global Chemical, a subsidiary of SK Innovation, entered into an agreement with Dow Chemical to purchase Dow's polyvinylidene chloride (PVDC) business for an undisclosed amount. Through the agreement, SK Global will acquire all of Dow's PVDC business, including its production facility in Michigan, related manufacturing technology and intellectual property, as well as the Saran trademark. According to local sources, the PVDC acquisition is expected to cost under USD86-million.
MRC