TURCAS Petrol and SOCAR to negotiate on the share in JV SOCAR-Turcas

(Trend) -- TURCAS Petrol and State Oil Company of Azerbaijan (SOCAR) began negotiations for the transfer of 25 percent share of Turcas Petrol in the joint venture SOCAR-Turcas of SOCAR, the Anadolu agency said on Tuesday. Talks are held on the purchase of 18.5-percent share of SOCAR-Turcas in a project to build a refinery in Izmir by SOCAR.

TURCAS will complete its work in the petrochemical holding company through indirect stock, and engage in the distribution of fuel refineries after reaching an agreement.

Turcas and SOCAR are parties of the joint venture - co-owner of a petrochemical complex Petkim. SOCAR-Turcas started construction of a new oil refinery in Turkey to meet Petkim's raw demand.

A ceremony of laying the foundation of a new refinery, which will provide feedstock for petrochemical complex Petkim, co-owner of which is SOCAR, in Izmir was held October 25.

The new refinery will primarily focus on supplying raw material for the complex. The cost of the plant is USD5.5 billion; and the production capacity is ten million tons per year. Oil produced in the factory will be directed to meet the demand of Petkim, the domestic market in Turkey and the countries of the Mediterranean region.

MRC

(Bloomberg) -- Arkema SA (AKE), already cheaper than any of its rival industrial chemical producers, may now be a takeover target for Saudi Basic Industries Corp. and DuPont Co. after deciding to spin off its unprofitable vinyls business.
Since losing a third of its market capitalization in the past seven months, Arkema's combined equity and net debt is now valued at 3.5 times this year's earnings before interest, taxes, depreciation and amortization, based on analysts' estimates compiled by Bloomberg. The multiple is the lowest among rival chemical producers, including Lanxess AG (LXS), Solvay SA (SOLB), Clariant AG (CLN) and Dow Chemical Co. (DOW), according to data compiled by Bloomberg.

With the sale of a unit that's been hampered by slumping construction spending, Arkema may now attract takeover interest from Sabic, the world's biggest petrochemicals maker, and DuPont (DD), the largest U.S. chemicals producer by market value, according to Berenberg Bank. The company, which makes chemicals used in everything from athletic shoes to air conditioning, may also lure private equity bidders, said Nomura Holdings Inc. Colombes, France-based Arkema could fetch as much as 70 euros a share in an acquisition, according to Berenberg, a 47 percent premium to yesterday's closing price.

MRC

(Sabic) -- A high-level German delegation, led by Dr. Niels Schmidt, Deputy Premier and Minister of Finance and Economy in the State of Baden - Wurttemberg, visited the Saudi Basic Industries Corporation (SABIC) in Riyadh on December 18 to discuss various aspects of cooperation between SABIC and major German companies in the petrochemical sector, existing investment opportunities, and other topics of common interest.
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The delegation, which comprised two members of the state parliament, and 30 political, economic and media personalities, was received by Prince Saud bin Abdullah bin Thenayan Al-Saud, Chairman of SABIC and the Royal Commission for Jubail and Yanbu, in the presence of Mohamed Al-Mady, SABIC Vice Chairman and CEO, and the company's executive vice presidents and vice presidents.

SABIC operates several industrial complexes in Europe, including Germany

MRC

MOSCOW (MRC) -- In November, imports of linear polyethylene (LLDPE) to Russia grew to 14.6 thousand tonnes. In general, over the 11 months, the total import volume of LLDPE to Russia increased by 30% and made 131.4 thousand tonnes, according to MRC DataScope.

In November, Russian companies, despite resumed LLDPE production at Nizhnekamskneftechem, increased volumes of linear polyethylene imports to 14.6 thousand tonnes, which was by 10% more than in October. About 46% of the total volume fell at polyethylene from Middle East.

Recently, a significant share in the Russian market has been won by Sabic, a producer from Saudi Arabia, on the back of cooperation with the largest Russian producers of stretch films.

The demand for linear polyethylene keeps growing quite dynamically. Following the 11 months results, the total import volume of LLDPE to the Russian market grew by 30% year on year and made 131.4 thousand tonnes. Over the 10 years, the demand for linear polyethylene grew by 40 times.

Unfortunately, capacities available in Russia are unable to reduce the dependence on imports. Nizhnekamskneftechem is the only Russian producer of LLDPE. At 2011 year end, the total production amounted to slightly more than 55 thousand tonnes, which is comparable to the 2010 index.

MRC

(Plastemart) -- Preparations are underway by Maruzen Petrochemical Co to restart its 480,000 tpa naphtha cracker in Chiba, as per Reuters. The cracker was shut a week ago after a fire at a control panel. The fire had no impact on the cracker itself. A definite schedule of restart has not been disclosed by the company.

MRC