Iran threatens to take South Pars field from CNPC

(Arabian Oil and Gas) -- Iran has again warned CNPC - China's state-backed upstream exploration and production company - that if investment in phase 11 of the giant South Pars offshore gas field was not ramped up, the National Iranian Oil Company would take custody of the field.

"Ultimatums will certainly be given to the China National Petroleum Corporation (CNPC) if the delays in developing the phase 11 of South Pars continues," Ahmad Qalebani, Head of National Iranian Oil Co.(NIOC) was quoted as saying by the semi-official Mehr news agency.

Rostum Qasemi, recently appointed Oil Minister by Mahmoud Ahmadinejad from the Revolutionary Guards, said last week that the Guard's engineering wing that he used to run, Khatam al-Anbia, should take over the running of the country's hydrocarbons resources and no foreign contractors were needed.

According to a Reuters report, the Guards, Khatam al-Anbia and Qasemi himself are all under sanctions imposed by countries, including the United States and the European Union, that accuse them of involvement in helping Iran develop nuclear technology transferable to weapons, which Tehran denies.

The offshore South Pars field, the world's largest reservoir of gas, contains about half of the estimated 28 trillion cubic metres of the country's gas reserves.

MRC

(Reuters) -- China's privately-run Dalian Fujia Petrochemical Co Ltd is operating its 700 KTa paraxylene plant normally despite a local government order on Sunday to close the plant due to a toxic spill scare, an industry source said on Monday.

Authorities in Dalian in northeastern Liaoning province ordered the Fujia plant to be shut down immediately on Sunday after thousands of local residents demonstrated, demanding the relocation of the factory at the centre of a toxic spill scare.

The plant, one of the country's leading importers of naphtha, is carrying on normal shipments of naphtha from regular suppliers such as Iran and Papua New Guinea, according to the source.

The Fujia plant, jointly owned by local government-backed Dalian Chemical Group and private real estate company Fujia Group, imports 100-120 KT of heavy naphtha a month, according to two trading sources.

MRC

(Lukoil) -- LUKOIL Press Service announces that, pursuant to Federal Law No. 409-FZ of December 28, 2010, ⌠On the Amendment of Individual Legislative Acts of the Russian Federation with Regard to the Regulation of Dividend Payment and the resolution of the Annual General Meeting of Shareholders of LUKOIL held on June 23, 2011, the Company performed a one-time dividend payment to its shareholders for the fiscal year 2010 totaling more than RUB 50 billion.


Owing to the successful and coordinated efforts of the Company's financial services, dividends were paid to all of the shareholders that submitted reliable and complete information necessary for the payment of dividends in a timely manner. Thus, the Company performed its obligations for the payment of dividends to the shareholders of LUKOIL.

MRC

(Trend) -- Kenan Yavuz, a board member at Turkey's leading petrochemical producer Petkim and CEO of SOCAR-Turcas Petrol, said on Monday that upon the completion of Izmir's Aliaga oil refinery field, Turkey's dependence on oil and oil products will be reduced by billions of dollars per year, Today's Zaman reported.

"When we complete the construction of the USD 5 billion Petkim Aliaga refinery, which will happen by 2015, its total oil extraction capacity will be 10 million tons a year. [At Aliaga] we will produce naphtha, fuels for jetliners, low-sulfur diesel fuel, liquid petroleum gas and other petrochemicals of which Turkey is presently a net importer, which should reduce Turkey's current account deficit (CAD) by billions of dollars," Yavuz said.

It is planned to start construction of a new oil refinery in Aliaga Industrial Zone in the Turkish city of Izmir in October 2011. This plant is needed to meet the Turkish Petkim Petrochemical Complex's needs in raw materials, in which SOCAR has a share.

MRC

This year the peak of PVC-S imports to the Ukrainian market was observed in April (17.75 KT), and after that it was gradually diminishing. April peak of resin imports was primarily stipulated by intentions of some market players to contract PVC at the minimum price in January- February.

A launch of a new facility of PVC-S production by Karpatneftechem in Kalush (300 KT) also contributed to the import reduction.

In July, US suspension supplies made only 1.8 KT, while in the peak month total PVC imports from North America made nearly 12 KT. On the contrary, European suspension supplies increased to 5KT. Traditionally the main European suppliers are Anwil, BorsodChem, Vinnolit and Spolana.

The further decline of PVC imports in Ukraine is soon expected on the back of seasonal factors, as well as under the pressure of domestic producers. In July, Karpatneftechem produced more than 12KT of PVC-S. Totally, over less than three months, the company produced more than 22 KT of resin. In September, Karpatneftechem is expected to work at full capacity.

Full interpretation of the analytics on the Ukrainian PVC market by grades, technologies, converters is available in MRC DataScope for May, June and July, 2011

MRC