TAZIZ and Reliance launch USD2 bn chemicals plant JV in Ruwais

TAZIZ and Reliance launch USD2 bn chemicals plant JV in Ruwais

MOSCOW (MRC) -- Abu Dhabi Chemicals Derivatives Company RSC Ltd (“TA’ZIZ”) and Reliance Industries Limited (RIL), have agreed to launch TA’ZIZ EDC & PVC, a world-scale chemical production partnership at the TA’ZIZ Industrial Chemicals Zone in Ruwais, said Transportandlogisticsme.

The new joint-venture will construct and operate a Chlor-Alkali, Ethylene Dichloride (EDC) and Polyvinyl Chloride (PVC) production facility, with an investment of more than USD2 billion.

Representing the first production of these chemicals in the UAE, the project will enable the substitution of imports and the creation of new local value chains, while also meeting growing demand for these chemicals globally.

The TA’ZIZ Industrial Chemicals Zone is a joint venture between Abu Dhabi National Oil Company (ADNOC) and ADQ.

The project builds on ADNOC and Reliance’s long-standing strategic partnership and is Reliance’s first investment in the MENA region.

The signing of the joint venture terms, which are subject to regulatory approvals, was witnessed by His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO and Reliance Industries Chairman and Managing Director, Mr. Mukesh D. Ambani.

The joint venture terms were signed by Mr. Khaleefa Al Mheiri, Acting CEO of TA’ZIZ and Mr. Kamal Nanavaty, President Strategy and Business Development of Reliance Industries Limited.

We remind, Abu Dhabi National Oil Co (ADNOC) plans to build a steam cracker in Ruwais, in line with its goal of more than doubling the chemical production capacity at the TA’ZIZ Industrial Chemicals Zone. A feasibility study on the project is under way, with the design phase set to commence in the first quarter of 2023, ADNOC said in a statement on 3 November.
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Petrobras reports net profit of USD8.8bn in Q3 2022

MOSCOW (MRC) -- The Q3 results of Brazil’s federal oil firm Petrobras exceeded expectations, but the market is cautious about the future of the company under president-elect Luiz Inacio Lula da Silva, Sidney Lima, analyst at Top Gain, told BNamericas.

Petrobras reported recurring net income of USD8.8bn and revenues of US$32.4bn, up 164% and 40% year-on-year. Lima highlighted that all areas improved, including E&P, which grew 47%, diesel (71%), gasoline (22%) and derivatives (24%).

"But there is caution with the change of government. [Lula’s Workers’ Party] defends using Petrobras as a social policy, so there’s uncertainty about the stability of the company's cash flow," Lima said.

Another point of contention is the anticipated distribution of dividends, which totaled 43.7bn reais (US$8.63bn) in the third quarter. One day after the publication of the results, the public prosecutor’s office requested the suspension of dividend payments, alleging risks to financial sustainability.

The night before, oil workers federation FUP and the association of oil minority shareholders of Petrobras (Anapetro) said they would take legal action to prevent the distribution of dividends, which, in the accumulated total for the year, already amounts to 180bn reais – compared to a net profit of 145bn reais in the period.

Mahatma dos Santos, a researcher at oil association Ineep said the increase in fuel prices and the reduction in exploration costs allowed Petrobras to practically triple the volume of dividends distributed.

"Not even the decline in production and marketing of derivatives this quarter [compared to the same period in 2021] changed the company's strategy of prioritizing the generation of value for its shareholders," he said in a statement.

Claudio Araujo Pinho, a lawyer specialized in oil and gas, said that the distribution of dividends this year does not agree with the law on state-owned companies, undermining the possibility of future investment and ignoring its social function.

According to Pinho, the board might not endorse the anticipated Q3 distribution of dividends once Lula takes office in January. "This will demonstrate the low governance of the current state-controller of Petrobras," he told BNamericas.

Flavio Conde, analyst at Levante Investimentos, underlined that the dividend distribution was split, contributing to the public accounts of the Bolsonaro government and to Lula's early term.

"It seems little to close the fiscal deficit of 2023, but all help is welcome," Conde told BNamericas.

We remind, Petrobras said it has signed a contract to sell the REMAN refinery in the northern state of Amazonas for USD189.5 MM to Ream Participacoes S.A., a subsidiary of distributor Atem. In a separate filing, however, the company formally known as Petroleo Brasileiro SA said it had failed to secure a buyer for the Abreu e Lima (RNEST) refinery after the interested firms declined to offer a bid. Petrobras said it would end the sale process, and analyze its next steps.

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AkzoNobel becomes global refinish partner for electric vehicle maker BYD

AkzoNobel becomes global refinish partner for electric vehicle maker BYD

MOSCOW (MRC) -- AkzoNobel has become the global refinish partner for new energy vehicle manufacturer BYD Auto Sales Company Ltd. – currently the world’s leading seller of electric vehicles, said the company.

The company has been a recommended supplier of vehicle refinish products and services to BYD in China since 2017. The new deal means that agreement will continue, while extending the partnership to serve BYD’s bodyshops and approved repairer networks worldwide.

Originally a battery maker, BYD now has more than 1,180,000 new energy vehicles in operation, having been ranked first in China’s electric vehicle sales for six consecutive years (2014 to 2019).

“We’re delighted to broaden our partnership with BYD globally and together push ahead with our shared ambition of reducing carbon emissions,” says Patrick Bourguignon, Director of AkzoNobel’s Automotive and Specialty Coatings business. “Making transport more sustainable is a major driving force behind our innovation and BYD will benefit from a host of digital tools and cutting-edge services, as well as our class-leading vehicle refinish systems.”

One of these tools will include the recently launched CO2eRepairCalculator – the vehicle refinish industry’s first repair system designed to measure, manage and reduce carbon emissions. It’s part of a new initiative which aims to encourage bodyshops to become more sustainable.

Other digital solutions being provided include MIXIT, AkzoNobel’s leading digital color identification and retrieval application. Meanwhile, the company’s Wanda brand will continue to be supplied in China, with plans to supply Sikkens and Lesonal globally.

Adds Bourguignon: “We look forward to supporting BYD with its pioneering work in the eMobility space, while underlining our own commitment to halving our carbon emissions across the full value chain by 2030.”

We remind, AkzoNobel bolsters its performance coatings portfolio after reaching an agreement to acquire the wheel liquid coatings business of Lankwitzer Lackfabrik GmbH. Completion of which is subject to regulatory approvals, is expected before end-2022. Lankwitzer's Rims and Wheel business operates out of a manufacturing site in Leipzig, Germany. Its products are approved for use by car manufacturers such as Daimler, Audi, VW, Opel, Fiat and Renault.

AkzoNobel is a Dutch multinational company that manufactures paints and performance coatings worldwide. Headquartered in Amsterdam, the company operates in over 80 countries and employs approximately 35,700 people. Turnover in 2017 amounted to 9.61 billion euros.


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Petrobras begins teaser phase for stake sale in Metanor

Petrobras begins teaser phase for stake sale in Metanor

MOSCOW (MRC) -- Petrobras has started the teaser disclosure stage regarding the sale of its entire shareholding in methanol importer and distributor Metanor, said the company.

Metanor is a corporation jointly controlled by Petrobras and Dexxos Participacoes. Petrobras currently holds a 50% share of the ordinary shares in Metanor.

Metanor operates through its subsidiary Copenor in the segments of methanol commercialisation and production of its derivatives, notably formaldehyde and hexamine.

Metanor is headquartered in Camacari in the state of Bahia.

We remind, Petrobras said it has signed a contract to sell the REMAN refinery in the northern state of Amazonas for USD189.5 MM to Ream Participacoes S.A., a subsidiary of distributor Atem. In a separate filing, however, the company formally known as Petroleo Brasileiro SA said it had failed to secure a buyer for the Abreu e Lima (RNEST) refinery after the interested firms declined to offer a bid. Petrobras said it would end the sale process, and analyze its next steps.

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ExxonMobil appointed Jim Chapman as vice president

MOSCOW (MRC) -- ExxonMobil said that Jim Chapman has been appointed vice president, Tax and Treasurer, effective November 28, 2022, said the company.

Chapman replaces Jaime Spellings, who has elected to retire after 31 years of service with the company. Chapman joins ExxonMobil from Dominion Energy, Inc. where he served as executive vice president and chief financial officer since 2018. He previously held the role of senior vice president and treasurer at Dominion. He also held several senior finance positions at Barclays Investment Bank and Lehman Brothers in Asia and the United States. Chapman began his career with Ernst & Young in Russia. He earned a bachelor’s degree in history and political science from Auburn University and a master’s of business from the University of Virginia’s Darden School of Business.

Spellings was appointed general tax counsel in 2010 and was elected vice president of Tax and Treasurer’s in 2020. He joined Exxon Company USA in 1991 and has held managerial positions with increasing responsibility in finance, tax and planning, including assignments in the U.S., United Kingdom and Thailand. Spellings graduated from University of Pennsylvania Wharton School of Business with a bachelor’s degree in business and economics, and he earned a J.D. from the University of Texas at Austin.

We remind, ExxonMobil Corp agreed to sell its Billings, Montana, refinery and related pipeline properties to Par Pacific Holdings Inc for USD310 MM. The sale ends a years-long effort by the U.S. oil giant to further reduce its refining footprint and concentrate production on plants along the U.S. Gulf Coast and in the Midwest. It also has been selling oil producing properties to boost returns.

Exxon Mobil Corporation is an American company, one of the largest oil companies in the world, one of the largest corporations in the world in terms of market capitalization. The company's headquarters is located in Irving, a suburb of Dallas, Texas.

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