Merger with TAIF will allow SIBUR to become one of the largest players in the world market - Mikhail Karisalov

MOSCOW (MRC) -- The merger with TAIF will allow SIUBR to become one of the largest players in the world market, said CEO of the company Mikhail Karisalov in an interview with TASS at the St. Petersburg International Economic Forum.

M. Karisalov noted that SIBUR's strategy is to transform from a partner of mining companies, helping to deal with by-products for them, into an actually independent, effective player in a large industry, which is attractive in itself. For this, the company was engaged in reconstruction, creation of new capacities, optimization of its business processes.

According to him, in fact, SIBUR's business is built on the needs of the wrong industries that consume liquefied gas, synthetic rubber or polypropylene, that is, directly from the end consumer. “We work from the needs of those who are through one or even two redistributions, in related industries: agriculture, construction, mechanical engineering, medicine, " he said.

Key expectations from this year are the continuation of the investment program. "The Amur Mining and Chemical Complex is already in a fairly advanced phase. Today, the pile driving is nearing completion, concrete work is underway. We have to accept the first navigation this year," said M. Karisalov.

Regarding the merger with TAIF, preparations are underway, but it is planned that by the beginning of the second half of the year there will be enough details so that our partners and I can proceed to formulating a specific plan for the integration of companies. "Of course, we, as an oil and gas chemical company, expect that the capacities of Kazanorgsintez, Nizhnekamskneftekhim, as well as generating capacities (TGK-16) will be included in the structure of the merged company," he said. Together with the completion of investment projects, which should be achieved over the next few years, the combined company's capacity will exceed 7 million tons. The combined company will be included in the top 5 world producers of petrochemical products.

"At the heart of the Amur Mining and Chemical Combine, in addition to the most serious inter-industry cooperation with Gazprom, there is also inter-country cooperation. I am talking about the deal with Sinopec approved by the government commission on foreign investments in December last year to enter the share capital of the MCC by 40%. Another very important part, besides of global things - these are indicators of efficiency. They are taken from the cost of raw materials, from the indicators of the cost that we can achieve. And also from the cost of construction. Investments below GYV10 billion is our most important goal. "

In addition, the project for the expansion of the Shurtan Gas Chemical Complex is being discussed with colleagues from Gazprom Neft. "This is a rather interesting project - there is production, the raw materials and technological possibilities for its expansion are clear, while there is a substantive discussion of different scenarios. The options for our participation are different - from co-investment in the development of an asset to a grocery outage."

“The project with Kazakhstan is no less interesting. Just recently, at the St. Petersburg International Economic Forum, we signed an agreement - we are studying the economic efficiency of joining the construction of a project for the production of polypropylene for 500 thousand tons, polyethylene for 1.25 million tons per year. make a decision by the end of 2021 ".

Earlier it was reported that on June 9, the first production line of the Amur Gas Processing Plant (GPP) of Gazprom was officially launched. The design capacity of the plant will be 42 billion cubic meters of gas per year. The GPP will include the world's largest helium production - up to 60 million cubic meters per year. The plant will consist of six technological lines with a capacity of 7 billion cubic meters. m per year each. Their introduction is planned to be carried out in stages. The Amur GPP is scheduled to reach its design capacity in January 2025.

Earlier, SIBUR and TAIF started to merge petrochemical businesses. The process implies the creation of a company on the basis of SIBUR Holding PJSC, 15% in which will be received by the current shareholders of TAIF. In return, a controlling stake in a Tatarstan group consisting of petrochemical and energy enterprises will be transferred. According to the press service of SIBUR, the remaining stake in TAIF may be subsequently redeemed by the merged company.

Earlier it was noted that the joint company of SIBUR and TAIF will include the parent company of the Tatarstan group, its two chemical plants and an energy company. On the part of TAIF, the following companies will join the merged company: TGK-16 JSC, Kazanorgsintez PJSC, Nizhnekamskneftekhim PJSC and TAIF JSC. The oil complex of TAIF-NK PSC is not included in the deal with SIBUR.

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, production of consumer goods, chemical, etc.

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

MOSCOW (MRC) -- Borouge has partnered with Singapore-based recycling firm Plaspulp Union to further develop and commercialize new packaging applications using recycled materials, said the UAE-based company.

The Memorandum of Understanding (MoU) marks Borouge's first foray into the recycling market in Southeast Asia, the company said in a statement. "Borouge is expected to develop more partnerships with other processing companies in the coming months," it said.

Borouge has already successfully tested the use of Plaspulp Union recycled materials in flexible packaging such as laminate and shipping packaging.

The MOU with Plaspulp Union will add to the existing partnerships Borouge has established with two other recycling companies in China to increase the volume of recycled materials in its portfolio and jointly develop innovative new solutions for packaging applications.

As per MRC, Borouge, a joint venture between Borealis and Abu Dhabi National Oil company, plans to complete the construction of a fifth polypropylene (PP5) plant in Ruweis in 2021. The PP5 plant is under construction and will begin operations in mid-2021. This plant with a capacity of 450,000 tonnes of PP per year will be fully commissioned in 2022.

According to MRC's ScanPlast report, Russia's PP deliveries to the Russian market were 523,900 tonnes in January-April 2021, up by 55% year on year. Supply of homopolymer PP and PP block copolymers increased, whereas shipments of PP random copolymers decreased.
MRC

MOSCOW (MRC) -- Rosneft has signed 73 agreements for a total of Rb616.5 bn, including more than 50 contracts for the implementation of the Vostok Oil project for a total of Rb558.8 bn, the company said.

Rosneft, within the framework of the St. Petersburg International Economic Forum (SPIEF), signed contracts for the construction of high-priority facilities at Vostok Oil, power supply, aviation support, provision of services, supply of equipment, materials, special equipment and pipe products. These include an agreement with the United Energy Company (UEC) for the construction of hydraulic structures for the Port Bukhta Sever oil terminal, and an agreement with LenmorNIIproekt for design and exploration work on the second and third stages of the terminal construction.

In addition, the company signed an agreement with the Pipe Metallurgical Company on the supply of metal products for the timely implementation of construction and installation work at Vostok Oil. In turn, Inter RAO - Engineering will carry out design and survey work for the construction of facilities of the first stage of energy supply for Vostok Oil with a total capacity of more than 1 gigawatt.

Rosneft has agreed with Norilsk Nickel on the development of integrated logistics services for the Vostok Oil project within the framework of the SPIEF. The company also signed an agreement with partners on the maintenance of its own fleet of Vostok Oil aircraft, which implies the development of a special service center in Russia.

At the forum, Rosneft and the United Machine-Building Group signed an agreement on the transportation of the company's projects with special and road-building equipment, which is necessary, among other things, for the implementation of the first stage of Vostok Oil. The company has also agreed with Sodexo Eurasia LLC on the provision of catering, accommodation and comprehensive maintenance services for social facilities at the fields of the Vankor cluster.

As part of the SPIEF, Rosneft signed agreements with two international oilfield service companies: Schlumberger and Baker Hughes. An agreement was signed with Schlumberger for the implementation of innovative projects in Russia, and with Baker Hughes, an agreement was signed on cooperation in the field of carbon management. An agreement was also signed with SUEZ Water Technologies & Solutions SA on cooperation in the field of wastewater treatment and recycling technologies.

The company also signed agreements of intent in the retail business: with Inter RAO UES on cooperation in the development of low-tonnage production and sale of liquefied natural gas as a motor fuel and with Rosseti on cooperation in the development of charging infrastructure for electric vehicles.

Earlier it was reported that Rosneft intends to build a new polyolefin complex for the production of polyethylene (PE) and polypropylene (PP) based on Ufaorgsintez (UOS, Bashkortostan). The design capacity for the production of polyethylene is at least 250 thousand tons per year, and the granted license should provide the ability to produce 230-250 thousand tons per year of low-density polyethylene (HDPE), up to 20 thousand tons per year of linear low-density polyethylene (LLDPE ) and up to 10 thousand tons per year of linear polyethylene on a metallocene catalyst. At the moment, the capacities of Ufaorgsintez allow producing up to 90 thousand tons per year of high-pressure polyethylene (LDPE) and 120 thousand tons per year of polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 744,130 tonnes in the first four month of 2021, up by 4% year on year. Shipments of all PE grades increased. At the same time, PP deliveries to the Russian market were 523,900 tonnes in January-April 2021, up by 55% year on year. Supply of homopolymer PP and PP block copolymers increased, whereas shipments of PP random copolymers decreased.

Rosneft is the world's largest publicly traded oil company. The company accounts for about 5% of global oil production, and its proven reserves in the international category will exceed 5 billion tons of oil equivalent. The structure of Rosneft includes the Angarsk Polymer Plant, the Lisichansk Refinery after the acquisition of TNK-BP and Ufaorgsintez (part of the Bashneft structure) after the closing of the transaction for the purchase of Bashneft on October 12, 2016. The main shareholder of Rosneft is the state-controlled Rosneftegaz (50% plus one share), another 19.75% is owned by British BP.
MRC

MOSOCW (MRC) -- Brazilian antitrust body CADE has approved the sale of refinery RLAM to the UAE's investor Mubadala Investment Company, reported Reuters with reference to a notice in the official gazette.

The deal was announced in March for USD1.65 billion.

RLAM is the first of eight Petrobras refineries on the block to be sold.

As MRC informed before, in December 2020, it became known that Petrobras was seeking 800 million reais (USD152 million) in compensation from engineering group Odebrecht in arbitration proceedings over its alleged violation of the shareholders agreement in petrochemical company Braskem.

We remind that Petrobras may need more than a year to divest its stake in Braskem, said Andrea Almeida, Petrobras CFO, in early July, 2020. She said during the company's recent webinar that Petrobras plans to give more time for potential investors to make offers for the company"s assets, including for its refineries and stakes at its petrochemical and fuel distribution affiliates. The divestment of Petrobras's stake in Braskem in 2020 would be desirable but "might not be possible" as the COVID-19 pandemic has changed market conditions, she said. The company plans to close part of its refinery sales in 2021. In December, Roberto Castello Branco, CEO of Petrobras, said that he wants to sell the company's stake in Braskem within a year. Petrobras owns 32.15% of Braskem.

Headquartered in Rio de Janeiro, Petrobras is an integrated energy firm. Petrobras" activities include exploration, exploitation and production of oil from reservoir wells, shale and other rocks as well as refining, processing, trade and transport of oil and oil products, natural gas and other fluid hydrocarbons, in addition to other energy-related activities.
MRC

MOSCOW (MRC) -- On the back of an acute shortage of European material and high polycarbonate (PC) prices in Asia, imports of PC granules into Russia (excluding shipments from Belarus) decreased in the first four months of 2021 almost by 2 times year on year to 4,400 tonnes, according to MRC's DataScope report.

Imports of material into the country were 8,100 tonnes in January-April 2020. Imports, excluding imports to Belarus, were 990 tonnes last months versus 2,000 tonnes in April 2020. March 2021 imports of PC granules were 1,220 tonnes.

Extrusion grade PC accounted for the reduction in imports. Its share in the total imports of material into the Russian Federation was 22% (990 tonnes) versus 71% (5,800 tonnes) a year earlier. The share of injection moulding grades rose to 67% (3,000 tonnes) in the January-April 2021 versus the share of 23% (1,900 tonnes) a year earlier.
Covestro (with the share of 50%) and Sabic Innovative Plastics (22%) were the main import suppliers of PC granules. Both producers significantly reduced their shipments in 2021. Thus, imports of Covestro's material fell by 27% in the first four months of 2021: from 3,000 tonnes a year earlier to 2,200 tonnes. Sabic's shipments decreased even more - to 970 tonnes (excluding Belarusian imports) from 4,300 tonnes a year earlier.

MRC