Braskem to focus on domestic projects in 2012

(Plastemart) -- Brazil's petrochemical major plans to focus on investments in Brazil in 2012, planning to spend around USD5bln on new production capacities in the country, the CEO told local paper Valor Economico.
Projects include a naphtha-based polypropylene (PP) plant at Camacari; a second ethanol-based polyethylene (PE) plant, the company's first green PP unit; and continued work on the Comperjpetrochemical complex in Rio de Janeiro. Braskem expects to invest a total of around USD4 bln in petrochemical plants at Comperj.


However, Braskem continues to eye opportunities in the US. The acquisition of PP assets in the US in 2010 and 2011, has consolidated its leadership in PP. Now Braskem is looking at business in PE. The firm continues to mull the size of the stake to acquire in PetroquimicaSuape polyester and PET resin project currently being built in the northeast by federal energy company Petrobras.


MRC

Repsol to invest USD1bln and incorporate reserves and production from 2012

(Repsol) -- Repsol and US oil company SandRidge Energy have reached an agreement for Repsol to buy approximately 1,500 km2 (363,636 net acres) of the Mississippi Lime play, an area rich in gas and light oil. Repsol will invest USD1 billion and will incorporate reserves and production from 2012.


Repsol will participate with a 16% and 25% stake respectively in two areas within the Mississippian Lime deposit, which spans the states of Oklahoma and Kansas in the USA. Repsol's share of production is expected to reach a peak of 90,000 barrels of oil equivalent per day in 2019.


According to the agreement, Repsol anticipates drilling more than 200 horizontal wells during 2012 and exceed 1,000 wells by 2014, in a fractured carbonate-rich area of 6,900 km2. Repsol will pay USD250 million in cash at closing and the remainder in the form of a drilling carry, expected to be completed in three years, according to current development expectations.


Mississippian Lime has a long production history and proven resources, rich in light oil and gas produced from fractured carbonates. The area, that has been in operation for more than 30 years, has extensive infrastructure which will accelerate the start-up of production and marketing of these hydrocarbons.


The deal is part of Repsol's strategy to diversify its portfolio into OECD countries. The company is developing in the United States various key projects contained in its Horizon 2014 strategic plan, including exploration in the Gulf of Mexico. Repsol also has activities in Alaska, and an LNG import terminal on the Canadian-US border.


MRC

Sibur to sell a stake in Perm's Mineral Fertilizers

(SIBUR) -- SIBUR Group and URALCHEM Holding have signed an agreement for the sale of a 51.22% stake in OJSC "Mineral Fertilizers (Perm). The Boards of Directors of SIBUR and URALCHEM approved the deal at their meetings held on December 22.At present, SIBUR Group owns 3.15% of shares and options to acquire a 48.07% stake in OJSC ⌠Mineral Fertilizers (Perm). URALCHEM Holding owns 46.47% of shares.

MRC

Pipe PE prices remain abnormally low in the Russian market

MOSCOW (MRC) -- A weak demand and excess supply of pipe HDPE in the Russian market still determine quite a low level of PE prices. It is not excluded that in the nearest future, taking into account the events at Stavrolen, the price situation in the market will change, according to MRC analysts.

The accident at Stavrolen has already caused a rise in HDPE prices in the Russian market on average by Rb2,000-4,000/tonne, the only exception makes pipe polyethylene. Excess supply of both colored and uncoloured pipe polyethylene amid a low demand still keep prices at quite a high level.


This week Russian producers offered uncoloured PE100 (so-called matrix) in the range of Rb57,500-60,000/tonne, VAT, FCA. Black Russian PE100 is offered on average for Rb59,500-60,000/tonne, VAT, FCA Kazan.


A buying activity in the market is low. Many Russian producers of polyethylene pipes are in no hurry to replenish their inventories. Mostly this is due to a lack of orders and planned stops for a turnaround in January.


At the same time, some converters still replenish their inventories, despite the end of the year and the coming long New Year holidays. Companies are investing their ready assets in the feedstock in anticipation of rising prices, which, as they think, will happen in the nearest future, due to the force majeure at Stavrolen.


MRC

In November PET imports to Ukraine increased by three

MOSCOW (MRC) -- In November, imports of PET granulate to Ukraine rose by 8.5 thousand tonnes and made about 13 thousand tonnes, the import volumes increased by three compared with the previous month, according to MRC DataScope.


One of the fundamental factors of supplies growth is converters' readiness for a strong demand from bottlers in December, resulted from the pre-New Year activity in the consumers' market. The fairly low price of granulate in foreign market also influenced it.


The biggest share in the supply belongs to Chinese producers of PET. In November, imports from China to Ukraine increased by 3.5 thousand tonnes and made about 6 thousand tonnes. It is worth noticing that last month there were no deliveries of PET from the UAE, the second-largest supplier in Ukraine.


At the same time, there were resumed shipments from South Korea. At the month end, the imports of South Korean material made 3.7 thousand tonnes.


The supplied volume of Belarusian material also shows a positive growth. In the first half of the year PET by Mogilevchemvolokno production almost was not supplied to Ukraine. However, the situation changed in the second half of the year. Since August 2011, PET imports of the Belarusian plant had shown monthly growth. In November, the company supplied 1.1 thousand tonnes of granulate, which was almost twice the volume imported in October.


MRC