Russian state will not interfere in TNK-BP conflict

(RIA Novosti) -- Russian-British joint venture TNK-BP will invest USD 45 billion in oil extraction and USD 4 billion in oil refining in the next 10 years, TNK-BP Executive Vice-President Stan Miroshnik said on Thursday. "The implementation of our strategy in oil extraction will require a USD 45-billion investment over the next ten years. In oil refining, which is our second priority, we'll invest USD 2.5 billion in raising its quality and USD 1.5 billion in marketing," Miroshnik told a congress of TNK-BP contractors.

TNK-BP will implement measures to maintain oil output in West Siberia but the company's new strategy for the next ten yeas will focus on international projects to yield from 40 to 90 mln barrels of oil a year in its oil output, he said.

Gas production will also be a top priority for TNK-BP in the next ten years and the company plans to build up gas extraction to 35 billion cubic meters in the next ten years, he said.

TNK-BP plans to increase oil and gas production on the Yamal Peninsula in the Russian Arctic in the next ten years while production in West Siberia will gradually decline, Miroshnik said.

MRC

(ICIS) -- US expandable polystyrene (EPS) prices rose this week as September price increases found partial acceptance, market sources said on Tuesday. US EPS prices were assessed by ICIS at 91-98 cents/lb ($2,006-2,161/tonne, ┬1,484-1,599/tonne) DEL (delivered) for block and package material, up 3 cents/lb from August prices.

Producers in the US had sought as much as 5 cents/lb, with BASF and NOVA seeking 5 cents/lb for modified or block EPS, which contains a flame retardant, and a 3 cent/lb increase for non-modified, or package EPS, effective 1 September.

Other producers, including Flint Hills Resources and Styrochem, announced a 5 cent/lb increase across the board, regardless of grade.

Initially, several producers had sought the increases on 15 August, but pushed the price hike back to 1 September to meet competitive situations. The price hike was related to the August contract price for feedstock benzene, which was up by 44 cents/gal from July.


MRC

(ICIS) -- Titanium dioxide (TiO2) prices in Asia are likely to continue to increase in the fourth quarter, with global producers hiking offers by USD 500/tonne (EUR 365/tonne) because of tight supply and rising raw material costs, market sources said on Wednesday.

But buyers said they may not require strong volumes in the last three months of the year, having secured adequate inventory in the third quarter, when TiO2 prices had a USD 300-500/tonne increase. The majority of producers are bullish that TiO2 prices will not halt their uptrend despite the traditional slowdown in downstream demand in the fourth quarter, market sources said.

TiO2 is mainly used as white powder pigment in the production of paints, coatings, plastics, paper, inks, fibres, food and cosmetics.

Kronos was first among international TiO2 makers to announce a USD 500/tonne price hike for all its products sold in Asia Pacific, effective 1 September.

MRC

(ICIS) -- The European monoethylene glycol (MEG) market is still undecided about which of the two initial September contract settlements to follow, sources said on Wednesday. ⌠I think in the case of doubt the benefit should go to the customer, not the supplier, a contract customer said.

He added that EUR 1,105/tonne (USD 1,514/tonne), the lower of the two numbers, would be preferable to the EUR 1,110/tonne, as a EUR 57/tonne increase from August is already significant. The market has two first settlements that were concluded on 1 September.

⌠I would assume that in the end one [of the contracts] will be confirmed, said a producer. There were suggestions that if four other parties were to agree a figure in the middle of the two existing contract agreements, the matter would be resolved. However, a second customer said this scenario was unlikely.

A third customer has proposed EUR 1,105/tonne to its supplier, who has rejected it. The August contract at EUR 1,048/tonne was agreed at the same time as the initial September prices were announced.


MRC

(RussianOilCompanies) -- Bashneft board of directors discussed establishing a joint venture, United Petrochemical Company, with the Austrian Petrochemical Holding GmbH. It will be a project company, set up to research and analyze the current situation and investment attractiveness of Russian petrochemical industry and to work out plans and proposals for the development of this sphere at Bashneft.

The parties will contribute to the EUR 10 mln share capital of the new company proportionately to their shareholdings: Bashneft - 75% and Petrochemical Holding GmbH - 25%.

The establishment of this joint venture is a legal consolidation of Bashneft and Petrochemical Holding cooperative intentions. Petrochemical Holding GmbH is headed by Yakov Goldovsky, who has considerable experience of working in petrochemical sphere.

MRC