ExxonMobil expands upstream footprint in Egypt with two offshore blocks

MOSCOW (MRC) -- Oil company ExxonMobil has expanded its upstream acreage in Egypt after it acquired two offshore blocks, boosting its footprint in the gas-rich Eastern Mediterranean basin, reported S&P Global.

The acquisition includes 1.2 million acres in the North Marakia Offshore block and 543,000 acres in the North East El Amriya Offshore block, the company said Monday.

Exploration operations including the acquisition of seismic data will begin in 2020, ExxonMobil said, adding it will operate both blocks, holding a 100% stake.

"These awards strengthen our exploration portfolio in the Eastern Mediterranean," said Mike Cousins, senior vice president of exploration and new ventures at ExxonMobil.

The award marks Exxon's second upstream assets acquisition in the North African producer after picking up blocks in a major latest licensing round earlier this year. The Egyptian Natural Gas Holding Corporation's bid round, the largest in its history, awarded 12 concessions to various oil and gas majors with Exxon picking up acreage for the first time.

Like many of its oil major peers, Exxon has been looking to expand its natural gas and LNG portfolio in recent years with major gas assets in Papua New Guinea and a stake in Mozambique's giant Rovuma LNG project.

ExxonMobil also has upstream interests in nearby Cyprus, where in early 2019 it discovered 5-8 Tcf (142-227 Bcm) at its Glaucus-1 resource.

ExxonMobil has said previously that if it can find at least 15 Tcf of gas it would seriously consider building an LNG export plant on the island.

The Glaucus-1 discovery has added to the vast gas resources already identified in the East Mediterranean, including the huge Leviathan and Tamar fields offshore Israel and the giant 30 Tcf Zohr gas field offshore Egypt.

Cyprus, Egypt and Israel have made significant gas discoveries in the East Mediterranean in the past decade, but monetizing the reserves has proved problematic.

There has been progress in the past year, with Israel agreeing to begin pipeline exports to Egypt, and Cyprus reaching a provisional deal to pipe gas from its Aphrodite field to Egypt.

Exploration also continues in the region, with expectations of more discoveries offshore Cyprus, Israel and Egypt from new drilling campaigns.

However, deteriorating relations between Cyprus and Turkey has disrupted some exploration activity.

Since Cyprus began offshore drilling more than 10 years ago, Turkey has sought to stop or control the activities in the Cyprus exclusive economic zone (EEZ).

Over the past two years, Ankara - through state-owned Turkish Petroleum (TPAO) - has stepped up efforts to lay claim to much of the Cyprus EEZ.

As MRC informed before, in September 2019, ExxonMobil announced plans to spend GBP140 million over the next two years in an additional investment program at its Fife ethylene plant, which has a capacity of more than 800,000 t/y.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,904,410 tonnes in the first eleven months of 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments increased from both domestic producers and foreign suppliers. The PP consumption in the Russian market was 1,161,830 tonnes in January-November 2019, up by 7% year on year. Deliveries of all grades of propylene polymers increased, with the homopolymer PP segment accounting for the largest increase.

ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world's oil and about 2% of the world's energy.
MRC

MOSCOW (MRC) -- Exports of polycarbonate (PC) from Belarus grew in the first eleven months of 2019 to 4,800 tonnes, up by 53% year on year, according to MRC's DataScope report.

This figure was at 3,200 tonnes in January-November 2018.

Lotte and Sabic's PC is exported via Belarus.

Shipments of material to Russia accounted for 95% (4,600 tonnes) of the total exports in January-November 2019 versus the share of 97% (3,100 tonnes) a year earlier.

However, Novemer PC exports through the Republic of Belarus increased by 2.5 times from October to 305 tonnes from 121 tonnes. PC granules imports were 526 tonnes last November.

The share of PC exports to Russia through Belarus rose in November 2019 by 6% year on year to 98%.

MRC

MOSCOW (MRC) -- Overall imports of polycarbonate (PC) granules into Belarus rose in the first eleven months of 2019 by 15% year on year to 11,000 tonnes, according to MRC's DataScope report.

This figure was at 9,600 tonnes in January-November 2018.

Spain (31%), the Netherlands (24%) and Saudi Arabia (16%) are the main countries-importers of PC into Belarus. The bulk of the imported material is then delivered to Russia.

Including exports of material of 4,800 tonnes from Belarus over the stated period, overall capacity of the domestic market totalled 6,200 tonnes of PC in January-November 2019.

November PC imports into the Republic of Belarus rose by 25% month on month to 1,040 tonnes from 830 tonnes. This figure was at 1,200 tonnes in November 2018.

MRC

MOSCOW (MRC) -- Russia's output of products from polymers grew in December 2019 by 2.5% year on year. However, this figure increased only by 1.9% year on year in 2019, reported MRC analysts.

According to the Russian Federal State Statistics Service, December production of unreinforced and non-combined films was 100,000 tonnes, compared to 101,700 tonnes a month earlier. Last year's output of films products grew by 8.8% year on year to 1,205,000 tonnes.

Last month's production of non-porous boards, sheets and films rose to 34,400 tonnes from 33,800 tonnes in November. Thus, overall output of these products reached 387,000 tonnes over the stated period, up by 11.8% year on year.

December production of non-porous boards, sheets and films was 24,900 tonnes, which equalled the figure a month earlier. Overall production of these products reached 277,000 tonnes in 2019, compared to 307,500 tonnes a year earlier.

December production of plastic bottles and flasks fell to 1,595,000 items from 1,668,000 items a month earlier. Overall output of these plastic products totalled 20,140,000,000 units last year, compared to 20,760,000,000 units a year earlier.

Last month's production of polymer pipes, hoses and fittings was 47,930 tonnes versus 49,750 tonnes in November. Overall production of these products totalled 618,000 tonnes over the stated period, up 4.8% year on year.

December production of sacks and bags from ethylene polymers reached 2,210,000,000 units, compared to 2,095,000,000 units a month earlier. Overall output of these plastic products totalled 25,628,000,000 units in 2019, compared to 27,403,000,000 units a year earlier.

Last month's production of linoleum and floor coverings was 8,890,000 square metres, compared to 13,230,000 square metres in November. Overall output of these products totalled 147,360,000 square metres in 2019 versus 131,800,000 square metres a year earlier.

December production of plastic windows and door blocks reached 1,956,000 square metres and 98,900 square metres, respectively, versus 2,203,000 square metres and 103,000 square metres a month earlier. Overall output of these plastic products totalled 24,825,000 square metres and 1,049,000 square metres, respectively, compared to 24,792,000 square metres and 1,215,000 square metres a year earlier.
MRC

MOSCOW (MRC) -- Celanese Corporation announced preliminary plans to expand its emulsion polymers derivatives business to extend the value of its global acetyl chain, as per Kemicalinfo.

"Building on a commitment to our global customer base to be the partner of choice by solving their most critical needs, Celanese will begin key investments in facility expansions as well as expand on our green technology product development to deliver on the global growth demands of our customers," said Todd Elliott, senior vice president, Acetyls.

Celanese is starting a debottlenecking project at its Nanjing VAE production facility of 20,000 metric tons per annum by 2022. Celanese will further expand EVA production capacity at its Nanjing facility by 65,000 metric tons per annum by adding a third EVA reactor by late 2022, taking the total Nanjing VAE capacity from 130,000 to 215,000 metric tons per annum. These expansion steps support emulsions growth plans in Asia through Celanese’s sustainable products and solutions in end uses such as redispersible powders and waterproofing.

Celanese is implementing a debottlenecking project of its Geleen VAE production unit of 20,000 metric tons per annum by 2021. Celanese will further expand EVA production capacity at its Geleen facility by 50,000 metric tons per annum with an additional EVA reactor by early 2023, taking the total Geleen EVA capacity from 130,000 to 200,000 metric tons per annum. This expansion will support growth while enhancing operating flexibility within the region.

In addition to the Geleen and Nanjing EVA expansions, further capacity unlocking projects have been evaluated to add an estimated 25,000 metric tons per annum in incremental capacities at other Celanese emulsions sites in all three operating regions. We expect this expansion program to be fully implemented by 2023.

Financial details of these capital efficient projects are not being disclosed at this time, and expansion plans will be implemented when operationally feasible and pending customary regulatory and permitting approvals.

As MRC reported earlier, Celanese raised its January VAM prices in Europe, Middle East and Africa by EUR100/mt.

According to MRC's DataScope report, November EVA imports to Russia dropped by 8,9% year on year to 3,440 tonnes from 3,780 tonnes in November 2018, and overall imports of this grade of ethylene copolymer into the Russian Federation decreased in January-November 2019 by 18,9% year on year to 35,95 tonnes (44,330 tonnes in the first eleven months of 2018).

Celanese Corporation is a global technology leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Based in Dallas, Celanese employs approximately 7,700 employees worldwide and had 2018 net sales of USD7.2 billion.
MRC