Nigerian state oil company says Eni unit did not obtain its consent in Oando sale

Nigerian state oil company says Eni unit did not obtain its consent in Oando sale

Nigerian state oil firm NNPC Ltd says a subsidiary of Italy's Eni did not obtain its consent prior to announcing a deal to sell onshore oil assets to local firm Oando PLC, a failure that could have breached terms of a joint operating agreement, according to a letter seen by Reuters.

The letter casts doubt on the speed of the transaction, announced on Monday, and underscores the difficulty international oil majors have faced in their years-long efforts to sell onshore oil and gas assets in Nigeria.

In the letter, dated Sept. 4, NNPC said that Eni subsidiary Nigerian Agip Oil Company Ltd (NAOC) did not seek its consent before it announced the deal, and that its consent was mandatory before transferring participating interest in a joint venture.

NNPC called failure to obtain prior written consent "a grave breach" of the joint operating agreement (JOA). The state oil firm's subsidiary NNPC Exploration and Production Limited (NEPL) holds a 60% stake in a NAOC joint venture.

Eni, which makes all comment on issues related to its NAOC Ltd subsidiary, said there had been no breach of the joint venture contract. NNPC has a pre-emption right on the JV shares, but Eni doesn't have any contractual obligation to inform beforehand NNPC about the deal, also because the information was price sensitive for the potential buyer," it said.

It said that pre-emption procedures and other consents will be "duly and carefully followed" at the applicable time. NNPC spokesperson Garba Deen Muhammad confirmed that NEPL sent the letter to NAOC, but said the letter did not indicate an objection to the transaction.

"NEPL is only drawing attention to certain important clauses in the JOA, which might have been overlooked in error. Adherence to those clauses will protect the transaction now and in the future," he said.

Oando declined to comment on the letter, but said "we trust that, as requested by NEPL, NAOC will engage accordingly to ensure that their concerns are addressed". Oando also said that Eni had not assigned its 20% interest in the NAOC JV to Oando, but had signed an agreement to sell 100% of the shares of NAOC Ltd, subject to all relevant regulatory and partner approvals and due diligence.

Oil executives say the conclusion of asset sales is crucial to boosting investment into onshore oil and gas assets, but legal and regulatory issues have snagged other deals, notably Exxon Mobil Corp's (XOM.N) asset sale to local firm Seplat.

Nigeria, typically Africa's largest oil exporter, has struggled to pump in the past several years due to theft and years of under-investment. Nearly all international oil majors, including Shell and Exxon, have onshore sales underway amid the theft and oil spills, perpetual clashes with communities and more focused exploration budgets.

We remind, Nigeria's average daily petrol consumption has fallen by 28% since President Bola Tinubu scrapped a popular but costly subsidy on the fuel at the end of May. Average daily petrol consumption fell to 48.43 million liters in June, down from the previous average of 66.9 million, according to figures released to Reuters by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

Brenntag Specialties acquires operating business of South Africa's Chemgrit

Brenntag Specialties acquires operating business of South Africa's Chemgrit

Brenntag Specialties BNRGn.DE has acquired the operating business of South African specialty chemical distributor Chemgrit Group, the German chemicals distributor said Thursday.

Brenntag Specialties is to integrate Chemgrit's Personal Care operations into its Personal Care/HI&I business unit, it said, adding that the acquisition is expected to close in the fourth quarter.

We remind, Brenntag has signed an agreement to acquire the operating business of Chemgrit cosmetics (Pty) Ltd., headquartered in Johannesburg, South Africa. The company, part of the larger Chemgrit chemicals group, is an independent specialty chemical distributor in South Africa with a focus on personal care and cleaning markets.

ADNOC to Develop One of the Largest Carbon Capture Projects in MENA

ADNOC to Develop One of the Largest Carbon Capture Projects in MENA

Adnoc has announced a final investment decision (FID) to develop one of the largest carbon capture projects in the Middle East and North Africa (MENA) region, said Process-worldwide.

The pioneering Habshan carbon capture, utilization and storage (CCUS) project will have the capacity to capture and permanently store 1.5 million tonnes per annum (mtpa) of carbon dioxide (CO2) within geological formations deep underground.

The announcement is part of Adnoc’s wider carbon management strategy, which aims to create a unique platform that connects all the sources of emissions and sequestration sites to accelerate the delivery of Adnoc and the UAE’s decarbonization goals.

Using best-in-class technology, the project will triple Adnoc’s carbon capture capacity to 2.3 mtpa, equivalent to removing over 500,000 gasoline-powered cars from the road per year. The project, to be built, operated and maintained by Adnoc Gas on behalf of Adnoc, will include carbon capture units at the Habshan gas processing plant, pipeline infrastructure, and a network of wells for CO2 injection.

We remind, Abu Dhabi National Oil Co has increased its buyout offer for Covestro AG to around 11 billion euros (USD12.3 billion). ADNOC's latest bid values Covestro at about 57 euros per share, the person said, up from a mid-50 euro per share range. Covestro had rejected ADNOC's initial takeover proposal last month, saying the offer was too low. A Covestro spokesperson declined to comment, while ADNOC did not immediately respond to a Reuters request for comment.

Univar acquires Canadian chemicals distributor FloChem

Univar acquires Canadian chemicals distributor FloChem

Univar Solutions Inc., a leading global solutions provider to users of specialty ingredients and chemicals, today announces the acquisition of FloChem Ltd. and certain of its affiliates, an industry leader in the distribution of chemicals and related dispensing systems in Eastern Canada, said the company.

The acquisition gives the Company access to new market segments, increased market position on key in-demand products, and new service capabilities.

Univar Solutions Increases Footprint, Product Portfolio and Services in Eastern Canada with Acquisition of FloChem Ltd.

FloChem is a distributor of commodity and specialty chemical solutions from North American manufacturers, including caustic soda, hydrochloric acid, phosphoric acid, hydrogen peroxide, bleach and sulfuric acid. Other offerings include products serving a variety of disinfectant and cleaning formulations in wastewater and water treatment; pool and spa; mini-bulk offerings; and food and beverage, to name a few.

"As an industry leader in chemical distribution and dispensing systems, FloChem is uniquely positioned within our Canadian market to expand our bulk chemical distribution (BCD) network while expanding our access to some of the most widely used industrial chemicals and services," said David Jukes, president and CEO of Univar Solutions. "This acquisition demonstrates our continued focus on our growth strategy and strategic imperatives to drive success now and into the future."

FloChem also offers a variety of value-added services, including specialty formulas/blends, custom packaging, and bulk freight service through a dedicated private fleet of trucks and tanker trailers.

"Responsiveness, reliability and safety are all hallmarks of our commitment to customers and shared values between our two companies," said Jim Holcomb, president of North America and chemicals and services for Univar Solutions. "The addition of FloChem's value-added services helps us continue our focus on service excellence while also opening the doors to several new markets, increased local capabilities with the addition of MiniBulk, and greater flexibility to manage logistics in Eastern Canada."

"We couldn't be more pleased to join a leading global solutions provider that aligns so well with our company, our values, and our culture," said Terry Tucker, CEO and president for FloChem. "This agreement represents a great step toward increased collaboration with our customers and supply chain partners to offer value-added products, solution-driven initiatives, and innovative new processes."

Terms of the transaction were not disclosed.

We remind, Univar Solutions Mexico, a global solutions provider to users of specialty ingredients and chemicals, announced an exclusive distribution agreement with dsm-firmenich, global innovators in nutrition, health, and beauty, that create solutions which positively contribute to the daily care routine and health of people's face, skin, and hair worldwide.

OQ Chemicals Introduces Oxbalance TCD Alcohol DM Manufactured With Bio-circular DCPD From Shell Chemicals

OQ Chemicals Introduces Oxbalance TCD Alcohol DM Manufactured With Bio-circular DCPD From Shell Chemicals

In response to growing market preferences for environmentally friendly alternatives, the global chemical company OQ Chemicals is ready to supply ISCC PLUS certified Oxbalance TCD Alcohol DM (tricyclodecane dimethanol), said Business-Wire.

This product is manufactured using the bio-circular precursor DCPD (dicyclopentadiene) from Shell Chemicals Europe, which is also ISCC Plus certified. The strategic collaboration between the two companies will ensure a reliable supply of bio-circular DCPD to support OQ Chemicals’ production.

“It’s also an example of how Shell is committed to delivering premium quality sustainable solutions to support a circular economy.”

TCD Alcohol DM serves as a versatile component in the production of high-performance technical polymers, paints and coatings, and adhesives used across sectors such as food packaging, electronics, and automotive. It is valued for its exceptional ability to enhance the properties of the final product, including improved durability, chemical resistance, and thermal stability. The bio-based Oxbalance TCD Alcohol DM serves as a sustainable and environmentally conscious alternative to its fully synthetic counterpart.

“OQ Chemicals’ new Oxbalance offering aligns with changing market preferences as customers increasingly seek out more sustainable alternatives without compromising quality or performance. Our partnership with Shell Chemicals Europe ensures a consistent supply of high-quality bio-circular DCPD for our production. With Oxbalance TCD Alcohol DM, we’ve added another product to our portfolio that supports our customers on their path towards more sustainability,” said Kyle Hendrix, Executive Vice President Marketing at OQ Chemicals.

“Our collaboration with OQ Chemicals to deliver ISCC PLUS-certified bio-circular DCPD that is based on a mass balance approach is another example of how Shell Chemicals works with customers to develop solutions to meet their objectives,” said Liz Allen, Director, Shell Chemicals Europe. “It’s also an example of how Shell is committed to delivering premium quality sustainable solutions to support a circular economy.”

OxBalance is a registered trademark of OQ Chemicals. The mass balance method allocates renewable feedstock in manufacturing. ISCC PLUS certification by the International Sustainability & Carbon Certification organization confirms environmentally responsible sourcing and strict sustainability compliance.

We remind, OQ Chemicals launches Oxbalance TCD Alcohol DM, a sustainable alternative to conventional TCD Alcohol DM (Tricyclodecane Dimethanol). The ISCC PLUS-certified product is made from more than 70% biobased and biocircular feedstocks.