Rumaila can pump 2.85 million bpd by 2017 - BP CEO Bob Dudley

(Arabian oil and gas) -- BP CEO Bob Dudley has been wooing Abu Dhabi's government ahead of its decision on the renewal of its long-term oil production contract for Adco, the emirate's largest onhore oil concession, and used a press conference to affirm the supermajor's commitement to raise production at Iraq's Rumaila oil field.

"Abu Dhabi and the emirates have been important to BP for 70 years," Dudley told a press conference in the Emirate yesterday. "And we'd want to continue to cooperate with people, technology."

BP currently has a 9.5% interest in the 1.4 million barrels per day Abu Dhabi Company for Onshore Oil Operations (Adco), under a long-term contract that is due to come to an end in 2014. The Abu Dhabi National Oil Company has confirmed that a decision on who is to participate in the renewed contract will be made within the next few months, and has warned IOCs to expect changes from the current contracts, under which margins are tight but not much is expected from ADNOC's partners.

MRC

(Trend) -- Azerbaijan and Ukraine will establish a joint venture to examine the project of supplying Azerbaijani liquefied gas to Ukraine, Minister of Industry and Energy Natiq Aliyev told media. The Ukrainian side proposes to consider supplying 2-5 billion cubic meters of gas. These volumes will be taken as the basis while preparing a feasibility study.

The adequacy of Azerbaijani reserves to ensure the country's commitments on gas supplies to Europe and Turkey should be also examined, Aliyev said. Minister said that the Ukrainian side said that it plans to start constructing a gas decompression terminal next year. It will initially dilute gas supplied from Qatar through the Bosporus. But, nevertheless, Ukraine seriously considers Azerbaijani liquefied gas supplies from the Georgian coast.

Supplies of liquefied Azerbaijani gas to Ukraine are possible within the project Azerbaijan-Georgia-Romanian Interconnector (AGRI), which envisages supplies of liquefied natural gas from Azerbaijan through Georgia and the Black Sea to Romania. Ukraine may become another country - a potential customer, which can increase the effectiveness of the project, Aliyev said.

MRC

(RIA Novosti) -- Russian oil major Rosneft and U.S. energy giant ExxonMobil will begin seismic surveying of the East Prinovozemelsky Blocks on Russia's Arctic shelf in two years, Rosneft head Eduard Khudainatov said on Friday.

Rosneft and ExxonMobil recently signed a USD 3.2 bln agreement to explore East Prinovozemelsky 1, 2 and 3 in the Kara Sea and the Tuapse License Block in the Black Sea. Rosneft will hold 66.7 percent in both joint ventures.


The pact gives Exxon, which is already partnering with Rosneft on the Sakhalin-1 offshore project in Russia's Far East, access to substantial reserves in Russia, the world's top oil producer. Rosneft, which was looking for a partner to provide it with shelf technologies it lacks, will be now able to operate on ExxonMobil's turf in the United States - in the Gulf of Mexico and Texas, as well as in third countries.

MRC

(Sabic) -- Prince Saud bin Abdullah bin Thenayan Al-Saud, Chairman of the Royal Commission for Jubail and Yanbu and Chairman of SABIC, received at the SABIC headquarters in Riyadh on September 15, a high-level Chinese delegation, headed by Zhang Gaoli, Member of the Political Bureau, Central Committee, Communist Party of China (CPC), and Secretary of the CPC Tianjin Municipal Committee.

Prince Saud praised the strong relationship between Saudi Arabia and China as well as the efforts of the leaderships of the two countries to develop these ties at all political, economic and technological levels. He lauded the strong growth of the Chinese economy, which has, in turn, boosted SABIC's presence in the Chinese market.

Experts expect the annual demand for petrochemicals in China to grow above 10 percent over the next ten years. SABIC has announced its plans to establish a USD one billion high-tech SABIC advanced polycarbonate technology plant in Tianjin City, China with an annual capacity of 260 KT to meet the growing demand for plastics in the country. The project will provide an opportunity to the company to grow in the market for high performance engineering thermoplastics, and meet the growing demand for SABIC advanced polycarbonates in China.

MRC

(MRC) -- Following August results, in Russia production of high-density polyethylene (HDPE) increased by 22% compared to July. Total volume of HDPE production over the eight months made 585.5 KT, according to MRC ScanPlast.

In July there were some technical problems at Gazprom neftechem Salavat. In August, HDPE production halted on and off, but since September 1, PE production suspended completely because of the accident. Gazprom neftechem Salavat is allegedly expected to restart HDPE production on the 1st of October. In mid-August, due to ethylene shortages, Kazanorgsyntez reduced HDPE production. That is why last month Russian companies produced only 74.4 KT.

Over the eight months, total volume of HDPE produced in Russia increased by 3% year on year. This year production growth has largely resulted from increased production capacities at Stavrolen and Gazprom neftechem Salavat. Other Russian producers, on the contrary, have cut production volumes.

There were no significant changes in HDPE consumption sectors. This year, Russian producers have increased pipe PE output, in particular, coloured and uncoloured PE100.

Last month Nizhnekamskneftechem restarted coloured PE100 production. This year the range of PE grades has not changed. The exception was only Kazanorgsyntez, which presented in the market a new IM grade - PE2NT21-13.

In September, Russian producers are expected to decrease HDPE production volumes by more than 30%. Earlier this week, Kazanorgsyntez began shutting down its reactors for routine maintenance. HDPE production is expected to resume on October, 5-6.

Nizhnekamskneftechem is expected to stop its HDPE production for 10 days scheduled maintenance from September, 27. The accident made Salavat neftechem Gazprom stand idle for a month.

By: Сергей Карайченцев, MRC analyst.


MRC