Equinor to start exiting from JV in Russia

Equinor to start exiting from JV in Russia

MOSCOW (MRC) -- Equinor's Board of Directors has decided to stop new investments into Russia, and to start the process of exiting Equinor’s Russian Joint Ventures, said the company.

"We are all deeply troubled by the invasion of Ukraine, which represents a terrible setback for the world, and we are thinking of all those who are suffering because of the military action," says Anders Opedal, President and CEO of Equinor. Early this week Equinor will present a commitment to contribute funding to the humanitarian effort in the region.

"In the current situation, we regard our position as untenable. We will now stop new investments into our Russian business, and we will start the process of exiting our joint ventures in a manner that is consistent with our values. Our top priority in this difficult situation is the safety and security of our people," says Opedal. Equinor has been in Russia for over 30 years and entered a cooperation agreement with Rosneft in 2012.

"We have employees from both Ukraine and Russia, and we are proud of how our people from different backgrounds and nationalities collaborate – with mutual respect, as one team in Equinor," says Opedal. Equinor has operated in compliance with Norwegian, European Union and United States’ sanctions. Equinor maintains close contact with the authorities in Norway, the European Union, the United States, and other countries, and will continue to comply with any new sanctions relevant to our operations.

At the end of 2021 Equinor had USD 1.2 billion in non-current assets in Russia. We expect that the decision to start the process of exiting Joint Ventures in Russia will impact the book value of Equinor’s Russian assets and lead to impairments.

As per MRC, BP is seeking to divest the near 20% stake in Russian state-oil company Rosneft it has held since 2013 in the starkest sign yet of the corporate backlash against Moscow’s invasion of Ukraine. BP did not specify how and when it might divest the Rosneft stake. It could write off the shareholding, sell it back to Rosneft or find another buyer. Analysts have speculated that a state-backed Chinese or Middle Eastern group might be interested in the shareholding, but it is thought that BP could struggle to find a bidder. The Qatar Investment Authority is already a major Rosneft shareholder.

We remind, BP completed the formation of its strategic US offshore wind partnership with Norway's Equinor. Under the award, Equinor and incoming strategic partner BP will develop the 1,260 MW Empire Wind 2 and the 1,230 MW Beacon Wind 1 offshore wind projects. The execution of the procurement award is subject to the successful negotiation of a purchase and sale agreement.


Sipchem net profit surged in 2021

Sipchem net profit surged in 2021

MOSCOW (MRC) -- Sahara International Petrochemical Co's (Sipchem) 2021 net profit surged on the back of higher product prices despite, said Argaam.

Sahara International Petrochemical Co, or Spichem, reported a net profit increase of 1,942 percent in 2021. The company's net income reached SR3.59 billion (USD957 million), compared to a loss of SR175 million in 2020, according to a bourse filing.

Sipchem also succeeded in reducing the long-term loans by SR2.1 billion compared to the end of the year 2020. The gearing ratio went down to 34% in 2021. In 2020, the gearing ratio of the company was 54%.

Sipchem distributed a total dividend of SR1.64 billion equivalent to SR2.25 per share, which is considered the highest in the company's history.

Sahara International Petrochemical Co (Sipchem) and industrial gas firm Linde signed an exclusive agreement to set up a joint venture for developing industrial gas projects and networks in Saudi Arabia. Under a 50/50 joint venture, Linde and Sipchem said they intend to connect existing hydrogen and syngas plants owned and operated by the two parties in Jubail Industrial City.

As MRC informed earlier, Sipchem is planning to mothball the Polybutylene Terephthalate (PBT) plant, owned by its affiliate, Sipchem Chemical Co., and Ethylene Vinyl Acetate (EVA) Film plant that is owned by affiliate firm, Saudi Specialized Products Co. Steps to implement the decision are underway, Sipchem said in a statement to Tadawul, adding that the suspension of both plants will start on Jan. 1, 2021, until further notice. The company expects a positive financial impact starting from Q1 2021 results.


bp selects Honeywell technology for its new diesel and SAF project

MOSCOW (MRC) -- Honeywell announced that bp and Honeywell have signed a licensing agreement for Honeywell UOP’s Ecofining technology, according to Hydrocarbonprocessing.

bp is undergoing pre-feed engineering for its proposed diesel and sustainable aviation fuel (SAF) project in Western Australia. bp plans to convert hydroprocessing equipment at its former refinery site in Kwinana, Australia, to produce approximately 10kbd diesel and SAF from renewable feeds, integrating with its existing terminal operations.

Revamping to Honeywell UOP’s Ecofining process is expected to provide a fast-to-market, capital efficient solution, ideal for repurposing underutilized hydroprocessing units to produce diesel and SAF from renewable feeds, which have substantially similar molecules to petroleum-based diesel and jet fuel and can be used as a drop-in replacement without engine modifications, in the case of SAF in blends of up to 50% with the remainder as conventional jet fuel.

Depending on feedstock choice, diesel and SAF produced from the Ecofining process is expected to result in a significant reduction in GHG emissions compared with conventional diesel or aviation fuel from petroleum. Honeywell helped pioneer SAF production with its UOP Ecofining process, which has been used to produce SAF commercially since 2016.

Justin Nash, Senior Manager Corporate & Cities Integrated Solutions said “bp is excited to be progressing this project as part of its ambition to develop an integrated energy hub at the Kwinana site. bp has strong track record as an energy provider to Western Australia, and this renewable diesel and SAF project will leverage existing infrastructure, including former refining assets, storage and distribution facilities and a team with extensive operational capabilities and experience.”

As MRC informed earlier, BP is seeking to divest the near 20% stake in Russian state-oil company Rosneft it has held since 2013 in the starkest sign yet of the corporate backlash against Moscow’s invasion of Ukraine.

BP is one of the world's largest oil and gas companies, serving millions of customers every day in around 80 countries, and employing around 85,000 people. BP's business segments are Upstream (oil and gas exploration & production), and Downstream (refining & marketing). Through these activities, BP provides fuel for transportation; energy for heat and light; services for motorists; and petrochemicals products for plastics, textiles and food packaging. It has strong positions in many of the world"s hydrocarbon basins and strong market positions in key economies.

Chevron to purchase biodiesel maker Renewable Energy Group

MOSCOW (MRC) -- Chevron is buying biodiesel maker Renewable Energy Group Inc for USD3.15 B, in its biggest bet so far on alternative fuels, reported Reuters.

The second-biggest US oil and gas producer said on Monday it would pay USD61.5 in cash for each share of Renewable Energy, a premium of over 40% to the company's Friday close. Renewable Energy shares rose more than 37% in premarket trading.

Major oil firms are facing increasing pressure from governments and investors to shrink their carbon footprint and join the fight against climate change, given their large contributions to global emissions.

Many US refiners have been ramping up production of renewable diesel to take advantage of increased state and federal subsidies to decarbonize their fuels.

Chevron has set a target to cut operational emissions to net zero by 2050 and in September pledged to invest USD10 B to reduce its carbon emissions through 2028, with about USD3 B earmarked for renewable fuels.

Ames, Iowa-based Renewable Energy Group produces both biodiesel and renewable diesel.

The deal is expected to accelerate progress toward Chevron's goal to grow renewable fuels production capacity to 100,000 bpd by 2030 and brings additional feedstock supplies and pre-treatment facilities, the company said in a statement.

The transaction is estimated to close in the second half of the year and is likely to add to Chevron's earnings in the first year and to its free cash flow after the start-up of Renewable Energy Group's Geismar expansion in Louisiana.

As MRC informed before, in September 2021, Chevron U.S.A. Inc., a subsidiary of Chevron Corporation, and Bunge North America, Inc., a subsidiary of Bunge Limited (NYSE: BG), announced today a memorandum of understanding (MOU) of a proposed 50/50 joint venture to help meet the demand for renewable fuels and to develop lower carbon intensity feedstocks.

Headquartered in San Ramon, California, Chevron Corporation is the the second-largest integrated energy company in the United States and among the largest corporations in the world. Chevron is involved in upstream activities including exploration and production, downstream activities including refining, marketing and transportation, and advanced energy technology. Chevron is also invested in power generation and gasification processes.

DuPont Sustainable Solutions announces its new brand name

DuPont Sustainable Solutions announces its new brand name

MOSCOW (MRC) -- DuPont Sustainable Solutions announced it will operate under a new name: dss+, according to Hydrocarbonprocessing.

Since DuPont Sustainable Solutions became an independent consulting firm after separating from DuPont in 2019, it has evolved and enhanced its capabilities through organic growth and the acquisition of three organizations to improve the breadth and depth of capabilities in operational excellence, sustainability, environmental, social and governance.

"I am thrilled to announce our new brand name which represents the exponential capability we have to help companies work safer and smarter, with purpose and impact," said Davide Vassallo, Chief Executive Officer of dss+. "Purpose is central to everything we do at dss+ and reflects our continued commitment to saving lives and creating a sustainable future and positive impact for future generations."

As MRC reported earlier, DuPont is to invest around USD5 m at facilities in Germany and Switzerland to increase capacity for automotive adhesives. The investment will expand capacity to support growing demand for advanced mobility solutions for vehicle electrification. New equipment has been delivered and installed that will increase manufacturing capacity as well as accelerate delivery of product samples to customers.

We remind that DuPont is also investing USD400 million in the production capacity of Tyvek nonwoven fabric made from high density polyethylene (HDPE) at its site in Luxembourg. A new building and a third work line at the production site will be constructed. The launch of new facilities was scheduled for 2021.

The DuPont Corporation, founded in the USA in 1802, operates in more than 70 countries. The company produces specialty chemicals, offers goods and services for agriculture, food production, electronics, communications, security and protection, construction, transport and light industry. In Russia, DuPont has 100% control over the DuPont Khimprom plant since 2005, and in 2006 established a joint venture between DuPont - Russian Paints and Russian Paints.