Shell sells its stake in Philippine gas field in line with its strategy to narrow oil and gas operations

MOSCOW (MRC) -- Royal Dutch Shell has agreed to sell its stake in an offshore gas field in the Philippines for USD460m as part of its strategy to narrow its oil and gas operations, according to BusinessDay.

Shell sold its 45% stake in Service Contract 38 (SC38), a deep-water licence that includes the producing Malampaya gas field, to a subsidiary of the Udenna Group, which already holds a 45% stake in the project.

The base consideration for the sale is USD380m, with additional payments of up to USD80m between 2022 and 2024 contingent on asset performance and commodity prices, Shell said in a statement.

The deal is due to be completed by the end of 2021.

Wael Sawan, Shell’s head of oil and gas production, said the deal “is consistent with Shell’s efforts to shift our upstream portfolio to one that is focused on nine core positions.”

As MRC informed previously, Shell is shrinking its refining and chemicals portfolio as part of a broader shift by oil majors to reduce hydrocarbon emissions and shift to lower-carbon fuels.

Last week, Shell agreed to sell its controlling interest in a Texas refinery to partner Petroleos Mexicanos (Pemex) for about USD596 million. And in early May, Shell announced the sale of its 149,000 barrel per day (bpd) refinery in Washington to Hollyfrontier Corp.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 576,270 tonnes in the first three month of 2021, up by 4% year on year. Low density polyethylene (LDPE) and high density polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market totalled 410,890 tonnes in January-March 2021, up by 56% year on year. Supply of homopolymer PP and PP block copolymers increased.

Royal Dutch Shell plc is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading.
MRC

MOSCOW (MRC) -- Arkema is edging towards its goal of transformation to a pure play specialty materials company by 2024, said th company.

Thierry Le Henaff said the company will achieve 90% of the objective this year, following the sale of its EUR510m sales polymethyl methacrylate (PMMA) business to Trinseo (closing expected mid-2021) and functional polymers to South Korea’s SK Global Chemical in 2019.

A season yet again disrupted by Covid, but which gave us the opportunity to come up with new forms of engagement at local level, and to prove throughout the year that Arkema was a major partner of women's football. Partnerships with local women's football clubs have multiplied since our sponsorship of the FIFA Women's World Cup in France in 2019.

In France, but also in the United States, 11 of our sites have partnered the women's branches of football clubs in their region to help develop amateur women's football. From financing equipment and shirts to contributing to funding the training of coaches, this support aims to provide these clubs with the means to welcome and train young female players of all levels in optimum conditions.

The club of Carrieres sur Seine, in France, sponsored by Arkema "Our sponsorship of Division 1 of women's football in France gives us legitimacy to help develop the practice of football among young women at all the small clubs near our plants. With these outreach initiatives launched by our plants in the regions in which the Group operates, we want to support these clubs to attract more players and give them the means to train in good conditions. For us, the message is simple: women must be able to find their place on the football pitch and in industry, two historically male worlds."

Congratulations to the communication teams at our French sites in Colombes, Carling, CERDATO in Serquigny, Coatex Genay, GRL in Lacq, Mont, Bostik Privas, Villers-Saint-Paul, Jarrie, as well as our Cary and King of Prussia facilities in the United States, for their commitment to these local clubs.

As per MRC, Trinseo, a global materials company and manufacturer of plastics, latex binders and synthetic rubber, announced the closing of the previously announced transaction to acquire Arkema’s polymethyl methacrylates (PMMA) business. PMMA is a transparent and rigid resin with a wide range of end uses that augments Trinseo’s existing offerings across several end markets including automotive, building and construction, medical and consumer electronics.

According to ICIS-MRC Price report, in Russia, Nizhnekamskneftekhim's PS prices remained unchanged in May. Prices of Nizhnekamskneftekhim's GPPS were in the range of roubles (Rb) 192,000-203,000/tonne, CPT Moscow, including VAT, whereas HIPS prices were at Rb196,000-207,000/tonne CPT Moscow, including VAT. At the same time, May prices of Penoplex's material fell by Rb15,000/tonne to Rb204,000-206,000/tonne CPT Moscow, including VAT.
MRC

MOSCOW (MRC) - SIBUR and TAIF are preparing to sign a number of agreements to compensate investment costs, Interfax reports, citing the words of SIBUR head Dmitry Konov.

"As far as I know, both TAIF and SIBUR are getting ready to sign an agreement on the reverse excise tax on the modernization of capacities, as well as to compensate for investment costs. production facilities in Tatarstan, "- said D. Konov during his visit to Nizhnekamskneftekhim (part of the TAIF group).

"I am sure that the more projects there are - and I understand that TAIF has a lot of these projects and this program will be implemented, the more support there will be," he said. According to D. Konov, the state "obviously sets the goal of expanding investment in production, modernization, and growth of non-resource exports." "And petrochemistry is a key industry in this regard," he said.

SIBUR and TAIF in April announced plans to combine assets. As part of the merger, a company will be created on the basis of SIBUR Holding, in which the current shareholders of TAIF will receive a 15% stake in exchange for the transfer of a controlling stake in a group consisting of petrochemical and energy enterprises. The remaining stake in TAIF can be subsequently purchased by the merged company. Earlier it was reported that on May 26, the FAS received a petition from SIBUR to acquire 100% of TAIF.

The largest petrochemical holdings in Russia - SIBUR and TAIF - in April announced plans to combine their assets. Within the framework of the merger, a company will be created on the basis of SIBUR Holding, in which the current shareholders of TAIF PSC will receive a 15% stake in exchange for the transfer of a controlling stake in a group consisting of petrochemical and energy enterprises. The remaining stake in TAIF can be subsequently purchased by the merged company.

Earlier it was reported that TAIF together with SIBUR will spend more than 1 trillion rubles. for the implementation of joint projects. In total, the companies plan to implement over 30 projects.

According to MRC's ScanPlast, the estimated consumption of PE in Russia amounted to 576.27 thousand tons in the first quarter of 2021, which is 4% more than in the same period a year earlier. The supply of high-density polyethylene (LDPE) and low-density polyethylene (HDPE) increased. At the same time, PP supplies to the Russian market in the first three months of the year amounted to 410.89 thousand tons, which is 56% more than a year earlier. The supply of propylene homopolymer (PP-homo) and propylene block copolymer (PP-block) increased.

SIBUR is the largest vertically integrated gas processing and petrochemical company in Russia, uniting a number of production sites in various regions of the Russian Federation. The company sells products to consumers in the fuel and energy complex, automotive, construction, consumer goods, chemical and other industries in more than 80 countries around the world.

PSC "TAIF" was established in 1995, is the parent company of the group of the same name, which includes enterprises structured in four business areas: oil and gas processing, chemistry and petrochemistry (energy); investment and financial services; building; telecommunications and complex services, including trade. TAIF Group of Companies is a large Russian holding that controls 96% of the chemical, petrochemical and oil and gas processing industries in Tatarstan. The most important of its areas is the Chemistry, Petrochemistry and Oil and Gas Processing Division, which includes the leading Russian polymer producers Nizhnekamskneftekhim and Kazanorgsintez.
MRC

1.Shell selling its Mobile, Alabama refinery to Vertex Energy

MOSCOW (MRC) -- Royal Dutch Shell is selling its 90,000 barrel-per-day (bpd) Mobile, Alabama refinery to specialty refiner Vertex Energy for USD75 million plus the cost of hydrocarbon inventory, reported Reuters with reference to the company's statement. Vertex plans to produce petroleum fuel and renewable diesel at the refinery following the close of the transaction in the fourth quarter of 2021, pending approvals. Vertex will also buy co-related logistics infrastructure and hydrocarbon inventory, including more than 3 million barrels of crude oil and product storage. The inventory is currently valued between USD65 and USD85 million, Shell said.

MRC

MOSCOW (MRC) -- Sinopec Shanghai Petrochemical, a subsidiary of one of the world's largest energy and chemical companies - Sinopec, said on Saturday an explosion had occurred on a pipeline carrying raw materials for making ethylene, injuring eight employees, reported Reuters.

A fire at the site of the explosion has been extinguished and the cause of the blast is under investigation, the company said in a notice posted on its official Weibo social media account.

Shanghai Petrochemical said in late March that it planned to shut around 50% of the capacity of its refinery and petrochemical facilities for planned maintenance. The refinery, which has an annual crude oil processing capacity of 16 million tonnes, was scheduled to carry out the overhaul in April and May.

As MRC wrote before, Sinopec Shanghai Petrochemical halted production at its cracker in Shanghai, China for a scheduled turnaround on April 18, 2021. It is expected that the maintenance works at this cracker with a total capacity of two lines of 800,000 mt/year of ethylene and 455,000 mt/year of propylene will continue for 45 days.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 576,270 tonnes in the first three month of 2021, up by 4% year on year. Low density polyethylene (LDPE) and high density polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market totalled 410,890 tonnes in January-March 2021, up by 56% year on year. Supply of homopolymer PP and PP block copolymers increased.

China Petrochemical Corporation (Sinopec Group) is a super-large petroleum and petrochemical enterprise group established in July 1998 on the basis of the former China Petrochemical Corporation. Sinopec Group"s key business activities include the exploration and production of oil and natural gas, petrochemicals and other chemical products, oil refining.
MRC