ExxonMobil mounts legal action over EU windfall tax on fossil fuel profits

ExxonMobil mounts legal action over EU windfall tax on fossil fuel profits

MOSCOW (MRC) -- ExxonMobil has initiated legal proceedings against the European Union to try to stop a proposed windfall tax on fossil fuel companies, arguing Brussels has exceeded its legal authority, said Upstreamonline.

In September, European Commission President Ursula von der Leyen announced the plan to impose a 33% “solidarity contribution” after oil and gas companies posted record profits in 2022.

The EC pledged to use the expected revenue of EUR25 billion (USD26.6 billion) to “help bring down energy bills”.

ExxonMobil reported a third-quarter profit of almost USD20 billion in October but a spokesperson described the EU measure as “counter-productive”.

We remind, strike action at Exxon Mobil’s 270,000 bpd Fawley oil refinery in southern England is set to resume on Jan. 9, a GMB union spokesperson said this week. GMB and Unite union members began the strike on Nov. 21, which was suspended on Dec. 12 for the remainder of the year. The strike was continuous except for a three-day hiatus for negotiations on Dec. 5-7, the spokesperson said.

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U.S. production of major plastic resins decreased by 5.4% in November

U.S. production of major plastic resins decreased by 5.4% in November

MOSCOW (MRC) -- U.S. production of major plastic resins totaled 7.2 billion pounds during November 2022, a decrease of 1.9 percent compared to the prior month, and decrease of 5.4 percent compared to the same month in 2021, according to statistics released today by the American Chemistry Council (ACC).

Year-to-date production was 85.3 billion pounds, a 2.6 percent increase as compared to the same period in 2021.

Sales and captive (internal) use of major plastic resins totaled 7.5 billion pounds during November 2022, an increase of 1.5 percent compared to the prior month, and a decrease of 0.6 percent from the same month one year earlier. Year-to-date sales and captive use were 85.1 billion pounds, a 4.2 percent increase as compared to the same period in 2021.

We remind, U.S. Chemical Production Regional Index (U.S. CPRI) fell by 0.4% in November following declines of 0.4% in September and 0.3% in October. Chemical output was lower than a month ago in all regions, with the largest declines in the Gulf Coast, home to much of the nation’s basic industrial chemical and synthetic materials capacity. The declines reflect sluggish output in several end-use manufacturing industries and weak export markets.
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Shriji Polymers buys controlling stake in Parekhplast

Shriji Polymers buys controlling stake in Parekhplast

MOSCOW (MRC) -- Packaging solutions maker Shriji Polymers (India) Ltd on Wednesday acquired a majority stake in rigid plastic packaging manufacturer Parekhplast India Ltd, for an undisclosed sum, said Linemint.

According to industry sources, Parekhplast India’s valuation could be more than 200 crore rupees (about USD24 million). They added that most recent deals in the plastics sector have been closed at a valuation of nearly the same value as their toplines.

The stake acquisition will allow Creador-backed Shriji Polymers to expand its presence in the rigid plastic packaging space and diversify its portfolio of verticals as Parekhplast’s portfolio, unlike the former’s, includes clients from various sectors including paints, construction chemicals, FMCG, pharma and nutraceuticals sectors.

“The investment by Shriji as a strategic partner has come at the right time when Parekhplast is poised for growth, and the funds brought in will lead to critical debottlenecking and help expand capacities to cater to our clients with a new and expanded product range focused on the growing consumer needs of the country," said Charul Ghia, the managing director of Parekhplast India.

Mumbai-based Singhi Advisors were the sole financial advisers for the transaction.

We remind, India has announced an extension on the deadline for the implementation of the quality certifications mandated by the Bureau of Indian Standards (BIS) on purified terephthalic acid (PTA) imports. The Department of Chemicals and Petrochemicals, under the Ministry of Chemicals and Fertilizers, via an order issued on 21 December 2022, set 22 June 2023 as the implementation date for the certification to come into effect.
The deadline was previously set for 22 December 2022.

Ujjain-headquartered Shriji Polymers, founded in 1996, is a public listed company which manufactures pharmaceutical plastic packaging products. In May 2020, private equity firm Creador emerged as the frontrunner to acquire a minority stake in Shriji Polymers to buy about 20% stake in the firm. This comprised the 13% stake earlier held by Tata Capital Healthcare Fund and a primary capital infusion, valuing the firm at around 1,200 crore rupees.
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Petrobras launches tender for pair of giant pre-salt FPSOs

Petrobras launches tender for pair of giant pre-salt FPSOs

MOSCOW (MRC) -- New floaters to produce from the Atapu and Sepia fields will be equipped with the "all-electric" technology, said Upstreamonline.

Brazilian state-controlled company Petrobras has launched a tender to contract two new floating production, storage and offloading vessels to serve the Atapu and Sepia pre-salt fields in the prolific Santos basin.

Petrobras invited companies to submit commercial bids on 20 July and is offering engineering, procurement and construction (EPC) contracts for Atapu-2 and Sepia-2, internally labelled as the P-84 and P-85 FPSOs, respectively.

The contracting strategy, under which Petrobras will own and operate both units, is expected to attract some Asian shipyards, although no single company will be awarded the two deals, according to the bidding rules.

We remind, Petrobras has started output at the Itapu pre-salt field in the Santos basin via the P-71 floating production, storage and offloading vessel. The P-71 FPSO, which features a processing capacity of 150,000 barrels per day of oil and 6 million cubic metres per day of natural gas, was deployed in water depths of 2010 metres. “We were able to anticipate production of the P-71 platform, which was originally scheduled for 2023,” said Petrobras production development director Joao Henrique Rittershaussen.
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China Covid cases surge as country opens up, disrupting offshore fabrication

China Covid cases surge as country opens up, disrupting offshore fabrication

MOSCOW (MRC) -- Yards face workforce shortages as workers call in sick, but labour crunch will be short lived as Covid symptoms typically last a week, said Upstreamonline.

China’s abrupt abandonment of its zero-Covid strategy without warning early this month has led to an unprecedented wave of infections ripping through the world's top energy consumer and causing serious workforce shortages at offshore fabrication yards.

Under its relaxed policies, people who test positive for the coronavirus are allowed to recuperate at home instead of being forced into centralised quarantine.

A “health code” on a smartphone app is no longer required to enter public places and authorities will stop tracking close contacts and designating high-risk and low-risk areas.

We remind, China will downgrade COVID-19 to a more common infectious disease, manage it at Category B instead of the top-level Category A and scrap quarantine for inbound travellers from 8 January. Currently, COVID-19 is classified as Category B but managed as Category A that applies to diseases like plague and cholera in China.
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