BP to quit Alaska after 60 years with USD5.6B sale

MOSCOW (MRC) -- British oil major BP Plc agreed to sell all its Alaskan properties for USD5.6 billion to privately held Hilcorp Energy Co, exiting a region where it operated for 60 years, as per Hydrocarbonprocessing.

The deal, which includes interests in the most prolific oil field in US history at Prudhoe Bay, and the 800-mile (1,300-km) Trans Alaska Pipeline, is part of BP's plan to raise USD10 billion over the next two years through asset sales to further strengthen its balance sheet, it said.

For years, BP has been reducing its role in Alaska, where oil production for fallen with declines at the Prudhoe Bay field. BP, which began working in Alaska in 1959, is the operator and holds a 26% stake in Prudhoe, where production began in 1977.

In 2014, BP sold Hilcorp half its share of an Alaskan project. This year, the two were due to decide whether to go ahead with an ambitious USD1.5 billion offshore project that requires construction of a manmade island.

The acquisition fits Hilcorp's historical strategy of acquiring mature fields from major oil companies and slashing costs. The company, founded in 1990 by Texas oilman Jeffery Hildebrand, has operations across the United States.

A Hilcorp spokesman did not reply to a request for comment.

“This deal vaults Hilcorp to be the second-largest Alaska producer and reserves holder, behind only ConocoPhillips," said Rowena Gunn, a Wood Mackenzie energy analyst. Hilcorp must show it can maintain output at Prudhoe Bay, where BP has been the operator, she said.

Prudhoe has to date produced over 13 billion barrels of oil and is estimated to have the potential to produce more than one billion further barrels. BP's net oil production from Alaska in 2019 is expected to average almost 74,000 barrels per day.

The deal calls for a USD4 billion initial payment to BP with the remaining USD1.6 billion in earnout payments over time.

"We are steadily reshaping BP and today we have other opportunities, both in the US and around the world, that are more closely aligned with our long-term strategy and more competitive for our investment," BP Chief Executive Officer Bob Dudley said.

The Alaska sale pushes BP closer to its goal of selling USD10 billion of properties following the 2018 acquisition of BHP's US shale assets, a USD10.5 billion deal that catapulted the London-based company into a major Texas shale producer.

BP previously had said that most of the disposals would come from its shale assets, particularly natural gas fields. The sale would help BP reduce its debt, which rose to 31% of its market capitalization by the end of June.

The sale faces regulatory approvals, including by the state of Alaska.

The divestment comes months after BP agreed to sell its interests in the Gulf of Suez oil concessions in Egypt to Dubai-based Dragon Oil for an undisclosed sum.

BP also said about 1,600 employees were currently part of its Alaskan business, adding that it was "committed to providing clarity about their future as soon as possible as part of the transition process with Hilcorp."

As MRC informed earlier, British oil and gas company BP will increase investment in the United States after the lowering of tax rates under President Donald Trump, Chief Executive Bob Dudley said in February 2018.
MRC

Canadian General-Tower acquires French plastic film makers

MOSCOW (MRC) -- Canadian General-Tower Ltd. (CGT), a Cambridge, Ont.-based supplier of coated fabric and film products, has acquired Liancourt, France-based companies AlkorDraka Industries and Alkor Medical Tubing, specialists in the formulation of plastic films, said Canplastics.

The financial terms of the deal have not been disclosed. The new trade names for the European businesses will now be CGT Alkor and CGT Medical Products, CGT said in a statement.

As a previous supplier of high-quality pool liners to CGT Europe, AlkorDraka Industries now covers eight business sectors: Ceiling and wall decoration, coatings for window marketing, dance floor films, consumer product packaging, pool liners, containment film, movie screens and various technical applications.

“This new development is an important strategic opportunity and comes with great excitement for the future of CGT as we continue to fulfill our global growth endeavors,” CGT CEO Craig Richardson said. “The initial reaction we have received from our stakeholders has been extremely positive as CGT moves toward investing both personnel and capital into the European markets to grow these newly acquired businesses.”

The acquisition will provide CGT, which is celebrating its 150th anniversary this year, with a strategic base of operations in Europe, Richardson said, adding to the company’s existing portfolio in North America and China.

CGT manufacturers coated fabrics and films for the automotive, building products, and pool liner sectors.
MRC

Trinseo raises September prices for latex products in North America

MOSCOW (MRC) -- Trinseo, a global materials company and manufacturer of plastics, latex and rubber, has announced that effective September 16, 2019, the company is increasing the prices of all Styrene Butadiene and Styrene Acrylate products sold into the carpet, paper, and paperboard markets in North America, as per the company's press release.

The increase will be USD0.06/dry lb. for all indexed and non-indexed customers, as contracts allow.

This increase is necessary due to changes in market conditions and to offset rising costs to manufacture and transport our products, and to remain a strong and reliable supplier.

As MRC informed before, Trinseo last raised its prices for all PS, ABS and SAN grades on 1 Jue 2018, as stated below:

- STYRON general purpose polystyrene grades (GPPS) - by EUR50 per metric ton;
- STYRON and STYRON A-Tech high impact polystyrene grades (HIPS) - by EUR50 per metric ton;
- MAGNUM ABS resins - by EUR35 per metric ton;
- TYRIL SAN resins - by EUR35 per metric ton.

According to ICIS-MRC Price report, in the Russian market, the general price range of the Nizhnekamskneftekhim's material did not change. Major traders offered Nizhnekamskneftekhim's injection moulding and extrusion grade GPPS at roubles (Rb) 90,000-91,000/tonne and HIPS - at 94,000-95,000/tonne CPT Moscow, including VAT.

Trinseo is a global materials company and manufacturer of plastics, latex and rubber. Trinseo's technology is used by customers in industries such as home appliances, automotive, building & construction, carpet, consumer electronics, consumer goods, electrical & lighting, medical, packaging, paper & paperboard, rubber goods and tires. Formerly known as Styron, Trinseo completed its renaming process in 1Q 2015. Trinseo had approximately USD4.6 billion in net sales in 2018, with 16 manufacturing sites around the world, and approximately 2,500 employees.
MRC

S. Korea slams Japan as 'white list' removal takes effect

MOSCOW (MRC) -- South Korea slammed Japan for effectively downgrading Seoul's trade status and accused Prime Minister Shinzo Abe of treating the neighbour as an "adversary", said Forbes.

The comments are the latest in a bitter tit-for-tat row stemming from a long-running diplomatic dispute over Japan's use of forced labour during its colonial rule over the peninsula from 1910 to 1945.

They came as Tokyo's removal of the South from its "white list" of trusted trade partners went into effect -- Seoul has already announced it will reciprocate, and last week said it will terminate a military information-sharing pact with Japan, raising concerns in Washington, which has security treaties with both.

"Prime Minister Abe commented twice that Korea cannot be trusted and is treating us like an adversary," said Kim Hyun-chong, a national security official at the Blue House.

He insisted Seoul's decision to terminate the intelligence-sharing deal, known as the General Security of Military Information Agreement (GSOMIA), would not lead to "fissures" in the alliance between the US and the South.

But last week's announcement caught many off guard, including Washington, with Secretary of State Mike Pompeo saying the US was "disappointed" by the move.

Separately, Seoul's foreign ministry summoned the Japanese ambassador to protest the "white list" removal.

Both Japan and the U.S. have shown their unhappiness over Korea’s decision on GSOMIA. A U.S. spokesman said it put U.S. forces in the region at increased risk while lowering defense capabilities.
MRC

Tallgrass Energy receives proposal to take company private

MOSCOW (MRC) -- Midstream energy firm Tallgrass Energy said on Tuesday it had received an offer from Blackstone Infrastructure Partners, its partners and affiliates to acquire the shares in the company that they do not already own, said the company.

These shareholders, who together already own about a 44.2% stake in Tallgrass including 23.7 million Class A shares, have made a non-binding preliminary proposal to buy Tallgrass’ remaining Class A shares at USD19.50 per unit, the company said.

The offer represents a 35.9% premium to the company’s last close on Tuesday.

The latest transaction will be valued at USD3.03 billion based on the number of Class A shares of 179.2 million at the end of July 31, as reported in the company’s latest filing.

In January, Blackstone Group LP said it would buy a controlling stake in Tallgrass for USD3.3 billion. Tallgrass said its board intends to form a committee consisting of independent directors to consider the proposal.

Citigroup Inc is the financial adviser and Vinson & Elkins the legal adviser to the midstream energy firm.
MRC