Poland ready for Russian oil ban, says minister

Poland ready for Russian oil ban, says minister

Poland is prepared for a Russian ban on oil sales to countries implementing a price cap, the climate minister said, with the country having cut its intake of Russian crude and secured alternative supplies from producers such as Saudi Arabia, said Reuters.

The Group of Seven (G7) nations and allies including Poland this month agreed a $60 per barrel price cap on Russian seaborne crude. In response, President Vladimir Putin on Tuesday signed a decree that bans the supply of crude oil and oil products from Feb. 1 for five months to nations abiding by the cap.

Poland has been gradually reducing its intake of Russian oil, and after the start of the war in Ukraine stopped buying seaborne Russian oil, top refiner PKN Orlen said. The company says it has secured alternative oil supplies via its partnership with Saudi Aramco.

"We are prepared to process all types of crude oil, this is our advantage," Minister of Climate and Environment Anna Moskwa told a news conference. Moskwa also said that she believed the next EU sanctions package would include a decision on banning Russian oil.

Poland is seeking German support to slap EU sanctions on the Polish-German section of the Druzhba crude pipeline so Warsaw can abandon a deal to buy Russian oil next year without paying penalties, two sources familiar with the talks told Reuters in November.

Poland and Germany promised in spring to try to end imports of Russian oil via Druzhba's northern leg by the end of year, but Orlen remains tied to its contract with Russian oil and gas company Tatneft.

"We believe that the next sanctions package will include a decision on oil," Moskwa said. "The sanctions cancel the contract with Tatneft."

We remind, Transneft has received requests from Poland and Germany for oil in 2023, the state oil pipeline monopoly's head told Rossiya-24 TV, adding that supplies via the Druzhba pipeline's southern spur are expected to hold steady next year. The EU has pledged to stop buying Russian oil via maritime routes from Dec. 5, with Western nations also imposing price caps on Russian crude oil, but the Druzhba pipeline remains exempt from sanctions. Transneft's comments are at odds with suggestions last month that Poland aimed to abandon a deal to buy Russian crude.

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Pemex sees poor environmental record as threat to financing

Pemex sees poor environmental record as threat to financing

Mexican state oil company Pemex said it has been falling behind in a global race to transition from fossil to renewable energy sources, and that stricter demands from environmentally conscious investors pose a threat, said Reuters.

Investors have for years considered Pemex a laggard as rivals worldwide moved to dramatically decrease emissions from energy production and consumption over climate change concerns. In its updated business plan for 2023 to 2027, Pemex said its environmental, social and governance (ESG) record risked hurting its financing.

"Limitations from ESG financing" are posing a threat, as is the "acceleration in energy transition that is decreasing the market for Pemex's crude oil and products," the company said. Further weaknesses are "important gaps in reaching net-zero-emissions" and operational challenges, particularly in gas exploration and production.

Julia Gonzalez, an expert on energy and infrastructure at law firm Gonzalez Calvillo, said Pemex urgently needed private investment and that Mexico should not exclusively rely on public funds to maintain or improve infrastructure.

"Pemex has to make significant efforts if it intends to access financing," said Gonzalez. "It's increasingly important to prevent and mitigate risks associated with ESG, including, of course, climate change."

While the business plan reiterated promises made by President Andres Manuel Lopez Obrador to reduce Pemex's emissions, it focused on oil and gas production and exploration as well as refining rather than shifting toward renewables.

Lopez Obrador says he inherited a company weakened by decades of mismanagement and corruption under his predecessors. Even so, his energy policies have limited participation by private companies that could bring in funds.

This year, Pemex has come under increased pressure to reduce the vast amounts of natural gas it burns off - including at two of its top priority fields, Ixachi and Quesqui - to the detriment of the environment.

As per MRC, Pemex requested this week almost USD6.5 bn in additional funding from the government to pay for works at the"'Dos Bocas" refinery this year. The additional funding is to cover works not initially included in the project's proposal, higher construction and startup costs, according to the document and sources. Mexican President Andres Manuel Lopez Obrador considers the new refinery a signature project and has argued it will help the country cut a longstanding dependence on gasoline and diesel imports.

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Fire at Lanaz refinery in Iraq Erbil under control

Fire at Lanaz refinery in Iraq Erbil under control

A fire at the Lanaz refinery in the northern Iraqi city of Erbil has been brought under control by civil defence teams, said Reuters.

The director of civil defence teams in Erbil said no casualties were reported.

Photos shared earlier by INA showed a big blaze and dark fumes at the Lanaz refinery, located on al-Kuwayr-Erbil road.

The cause of the fire was not clear and no further information was immediately available.

As pre MRC, on 28 of December, a fire broke out in a refinery in Iraq's northern city of Erbil and attempts by firefighting teams to get it under control are ongoing.

We remind, Lanaz Co has let a contract to Honeywell UOP LLC to deliver technology licensing and equipment for a project to increase production of cleaner-burning transportation fuels at the operator's 100,000-b/d refinery at Erbil in the Kurdistan region of Iraq. As part of the contract, Honeywell UOP supplied basic engineering design, licensing, and full-modular units equipped with its proprietary naphtha hydrotreating and fixed-bed platforming process technology for the Lanaz clean-fuels upgrading project, the service provider said in a 10 Jan 2022.

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AkzoNobel finalizes EUR500 million share buyback

AkzoNobel finalizes EUR500 million share buyback

AkzoNobel has repurchased 162,810 of its own common shares in the period from December 12, 2022, up to and including December 16, 2022, at an average price of €64.61 per share. The consideration of the repurchase was EUR10.52 mln, said the company.

This finalizes the EUR500 million share buyback announced on February 9, 2022, which was scheduled to be completed by the end of 2022, as previously stated. The total number of shares repurchased under the program was 7,263,728 ordinary shares, at an average price of EUR68.84 per share.

This share buyback was implemented within the limitations of the authority granted by the Annual General Meeting (AGM) on April 22, 2022. The share repurchase program was conducted within the parameters prescribed by the Market Abuse Regulation 596/2014 and the safe harbor parameters prescribed by the Commission Delegated Regulation 2016/1052 for share buybacks.

We remind, AkzoNobel has completed the acquisition of the wheel liquid coatings business of Lankwitzer Lackfabrik GmbH, a deal which strengthens the company’s performance coatings portfolio. The acquired business will complement AkzoNobel’s existing powder coatings offering and expand the range of innovative products the company supplies.

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INEOS and SINOPEC complete two out of four significant petrochemical deals

INEOS and SINOPEC complete two out of four significant petrochemical deals

INEOS and SINOPEC have completed two of the four significant petrochemical deals announced earlier this year, said the company.

The two deals are: SECCO joint venture. INEOS has acquired 50% of Shanghai SECCO Petrochemical Company Limited.

ABS joint venture. INEOS and SINOPEC have also established a 50:50 joint venture for ABS (Acrylonitrile Butadiene Styrene), based on INEOS’ world leading proprietary ABS Technology.

The third and fourth deals are expected to complete in 2023. These are: HDPE joint venture. INEOS and SINOPEC will also establish a third 50:50 joint venture to build a new 500ktpa HDPE (High-Density Polyethylene) plant in Tianjin.

INEOS to acquire a 50% share in the Tianjin Nangang Ethylene Project, which is currently under construction by SINOPEC and is expected to be on-stream by the end of 2023.

Jim Ratcliffe, Chairman and CEO INEOS said “These agreements significantly reshape INEOS’ petrochemical production and technology in China. We are pleased to make these major investments with SINOPEC in areas that provide the best growth opportunities for both companies. Both parties recognise the potential for closer collaboration across a number of other areas as we look ahead.”

Dr. Ma Yongsheng, Chairman of SINOPEC said, “SINOPEC and INEOS have enjoyed many years of partnership and these two significant deals are testament to the cooperation in the petrochemical field between us, which is now taken to a new level. Driven by the dual goals of managing carbon emissions and the energy transition, the two parties will play to their respective advantages in market location, resources and technology, to create a win-win development for both companies to expand further possibilities in the development of Chinese petrochemical market."

We remind, INEOS Olefins & Polymers USA announced today it has entered into a renewable power purchase agreement which will enable the construction of a new 310-megawatt solar project located in north central Texas.

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