Petrobras sets Aug 19 shareholder meeting on new board proposal

The Brazilian state-owned oil major Petrobras’ PBR eligibility committee recently stated that two of the Brazilian government's seven nominees for a refurbished board at the company did not meet the requirements to hold the position, said Reuters.

Brazilian President Jair Bolsonaro picked the two ineligible nominees – Jonathas Assuncao Salvador Nery de Castro and Ricardo Soriano de Alencar. Both of them, however, are not qualified to become the board members of PBR based on the company’s internal bylaws, the committee established, per the minutes of its last meeting.

The committee mentioned that the candidates would have a conflict of interest in serving the board of the company as they both hold high-ranking positions in the Brazilian Government led by Bolsonaro. While Castro is an official in the chief of staff's office, Alencar serves as the prosecutor general of Brazil's national treasury.

The committee’s report is nonbinding, and the rejected nominees can still be board members as necessary approvals by the current board and Petrobras' shareholders are pending. The other five government picks and the two minority shareholder appointees were given consent by the committee.

As per MRC, Petrobras resigned in the face of mounting pressure from politicians following a fuel price hike last week, with a high-ranking company insider quickly tapped to replace him on an interim basis. Petroleo Brasileiro SA, as the company is formally known, said in a securities filing that CEO Jose Mauro Coelho had resigned on Monday morning. In a separate filing, it said that Chief Exploration and Production Officer Fernando Borges had been appointed interim CEO until a new boss is elected by shareholders.

Headquartered in Rio de Janeiro, Petroleo Brasileiro S.A. or Petrobras S.A. is the largest integrated energy firm in Brazil and one of the largest in Latin America. PBR’s activities include the exploration, exploitation and production of oil from reservoir wells, shale and other rocks as well as refining, processing, trading and transportation.
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According to details given by the General Department of Customs, June alone witnessed the country import 717,000 m3 of petroleum with a total value of USD812 million, a decline of 19% in volume and 9% in value over the previous month, said VOV.

The department assessed that the Republic of Korea (RoK) was the largest supplier of petroleum to the country in the reviewed period, making up 40% of the total. In addition, the nation imported 1.9 million m3 of petroleum worth US$2 billion, up more than two fold in volume and 3.8 fold in value compared to the same period from last year.

Furthermore, the price of petroleum imported from the RoK stands at USD1,063 per m3, an annual increase of 84%. This sharp increase can be attributed to free trade agreement signed between the two countries coming into force, with tax being set at 10% on imported petroleum from RoK.

As a result of these measures, the Ministry of Finance again proposed the Government move to lower the most-favored-nation (MFN) tariff placed on unleaded gasoline to 10% from 20%, as opposed to the figure of 12% previously suggested. This is along with efforts to cut the environmental protection tax placed on fuels.

The Ministry said the reduction would not help to reduce the domestic petroleum price however, particularly as it would encourage domestic enterprises to diversify petroleum supply from other countries, such as China, the United States, and Middle East nations. This would therefore avoid dependence on a few partners, especially if the supply in the global market fluctuates.

As per MRC, Indorama Ventures completed the acquisition of Ngoc Nghia Industry, one of Vietnam’s leading PET packaging companies. The acquisition will boost IVL's market position as it continues to expand its integrated offering of PET products to major multinational customers throughout the region. Ngoc Nghia is a trusted market leader in PET, preforms and closures, with long-term partnerships with major global and Vietnamese brands in the beverage and non-beverage industries. It has four manufacturing facilities in Vietnam's north and south with a total production capacity of 5.5 B units of PET preforms, bottles and closures, totaling 76,000 tpy of PET conversion.
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Brazil's Petrobras has secured a USD1.25bn credit line that includes sustainability commitments, the company said on July 11, said Gaspathways.

The line was secured from Bank of China, MUFG and the Bank of Nova Scotia, the national oil company said, and includes incentive mechanisms relating to the firm's key performance indicators regarding upstream and downstream greenhouse gas emissions intensity, and upstream methane intensity.

Petrobras noted it was the first time it had secured financing that is tied to its sustainability targets. The move "reinforces the company's focus on the decarbonisation of its operations and expands the liability management strategy by diversifying financing models, in line with the sustainability requirements that are increasingly present in debt markets," Petrobras said.

The credit line has a five-year duration.

We remind, Petrobras said it has signed a deal with TSE and Toyo Engineering Corp to build a new diesel hydrotreating unit at its Paulinia refinery. The move will require USD458 million in investments and is in line with Petrobras’ 2022-2026 business plan, the company said in a securities filing. Petroleo Brasileiro SA, as the company is formally known, said the hydrotreating unit is expected to enter production in 2025.

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.
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Singapore's petrochemical exports rose by 21.1% year on year to Singapore dollar (S$) 1.61bn in June, supporting the overall increase in non-oil domestic exports (NODX), said The Business Times.

Overall NODX rose by 9.0% year on year to S$17.7bn in June, slowing down from the 12.0% expansion in May this year, data from Enterprise Singapore showed.

Non-electronic NODX, which includes pharmaceuticals and petrochemicals, rose by 10.6% year on year to S$13.7bn in June, down from the 11.7% increase in May.

NODX to six out of Singapore's top 10 export destinations rose in June, with shipments to the Thailand, South Korea, Hong Kong and the EU falling. Non-electronic NODX to the US and China rose by 22.6% and 7.6%, respectively, in June while those to the EU fell by 18.6%.

As per MRC, the value of Singapore's non-oil domestic exports (NODX) rose 6.4% year over year in April, slower than the 7.7% expansion in March, as exports of electronic products fell on a monthly basis. The pace of growth in April was almost in line with the market's consensus forecast, according to ING Bank economist Nicholas Mapa. The city-state's exports of electronic products rose 12.8% year over year in April, faster than the 11.5% expansion in March, driven by strong shipments of integrated circuits, IC parts and telecommunications equipment.
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Synthesia Technology Inc., a leader in Polyurethane systems, polyester polyols and chemical specialties, will build a new facility in Little Rock, Arkansas, said Areadevelopment.

The USD29 million project is expected to create 50 jobs over the next three years. The location represents the company’s first U.S.-based manufacturing operation for the production of insulated products supporting the construction materials industry, according to state officials. Synthesia plans to break ground in July and begin hiring by the fourth quarter of 2022.

The project has qualified for two performance-based incentive programs through the Arkansas Economic Development Commission—the Tax Back Program and the Advantage Arkansas Program. “It is a pleasure to welcome Synthesia as they establish their first U.S. facility right here in Arkansas,” Governor Asa Hutchinson said. “With all Arkansas has to offer—our central location, our diverse infrastructure, our robust workforce, and our low cost of living, just to name a few—I am confident that Arkansas has the tools to support Synthesia as they enter U.S. markets and continue their path to success."

“We are pleased to welcome another great company to Arkansas,” Secretary Mike Preston said. “Our business community continues to expand as more and more companies come to Arkansas and see for themselves that this state is the best place to do business. It’s been a pleasure to assist Synthesia in their search for a site, and I trust that they will find central Arkansas to be the perfect fit for their new facility."

The Synthesia Technology Group is made up of a Spanish-based holding company specialized in the manufacture and commercialization of chemical products, polyester polyols and polyurethane systems for thermal and acoustic insulation and diverse industrial applications. With more than 50 years of experience, the company represents a benchmark in the residential and industrial insulation markets.

As it was written earlier, Synthesia Technology America aims to build a new, large-capacity manufacturing plant in the United States. The new polyester polyol site will produce polyols based on recycled PET technology. The project will also comprise of a systems house for producing blend polyols and PU systems. Details on the exact capacity of the new project, the predicted start-up date, or the chosen location were not yet disclosed.
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