Russian Sistema acquires LPG transporter SG-Trans in USD730 mil deal

(Platts) -- Russian conglomerate Sistema has signed a deal to acquire SG-Trans, the country's biggest independent operator of railcars for transportation of LPG, the company said Tuesday.

Sistema will pay a total cash consideration of Rb22.77 billion (USD730 million) for 100% of SG-Trans, in a deal which the company hopes to close by the end of this week, it said in a statement.

The Russian government previously approved a tender to select a buyer for SG-trans.

Sistema, which owns a majority share in Russia's eighth largest oil producer Bashneft, said that the acquisition is in line with the company's strategy to develop a strong position in the LPG transportation market.

"We believe Sistema is well positioned to benefit from this acquisition due to SG-Trans' leading position in the Russian LPG transportation market and our now combined fleet of 34,500 railcars," Sistema CEO Mikhail Shamolin said in the statement.

The acquisition of SG-Trans is "a significant value creation opportunity, through potential restructuring and optimisation efforts, adjustment to market rates and the exploration of possible strategic options for SG-Trans' gas storage and retail segment," the statement said.

Sistema and Bashneft are now looking at options to combine its rail investments under one management team, the company said.

Liquefied petroleum gas, also called LPG, GPL, LP Gas, liquid petroleum gas or simply propane or butane, is a flammable mixture of hydrocarbon gases used as a fuel in heating appliances and vehicles.

MRC

CNOOC, Nexen withdraw deal approval application to US government

(Platts) -- China National Offshore Oil Corp. and Nexen have withdrawn and resubmitted their application for US approval on their USD15.1 billion proposed deal, Nexen said late Tuesday.

"Discussions with CFIUS continue, with a view to completing the CFIUS review process as expeditiously as possible," the company added.

Nexen said the closing of the deal remains subject to the receipt of applicable government and regulatory approvals by the relevant authorities in Canada, the US, the EU and China, and the satisfaction or waiver of the other customary closing conditions.

CNOOC had said September 6 that it had filed its application with the CFIUS seeking approval for the deal. In a note issued Wednesday Credit Suisse said the resubmission is "an unusual event" but indicates the companies are continuing to "seek closure in the US".

"It is surprising to have to re-work the US approval...the deal attracted very little media [and] public political interest in the US," Credit Suisse said, adding that Nexen has 18,000 b/d oil equivalent of current US production, which is primarily gas, while its oil output represents less than 0.1% of the US' total oil production this year.

The CFIUS review program is an initial 30-day, potentially followed by a further 45-day and a final 15-day Presidential review, if required, said Credit Suisse.

In Canada a deadline for the review of CNOOC's proposed acquisition has been set at December 11 as Ottawa looks for ways to extract unbreakable job and investment commitments from CNOOC. That was the second time the review had been extended, from initial deadlines of October 12 and November 12, for a decision on whether the deal will provide a net economic benefit for Canada.

The proposed takeover has been approved by Nexen shareholders and the Canadian courts.

CNOOC has repeatedly said it expects to receive all regulatory approvals by year-end.
MRC

Petrobras enlists Citigroup to sell Houston refinery

(hydracarbonprocessing) -- Petrobras has enlisted Citigroup to shop its 100,000 bpd Houston-area refinery, sources said, as the Brazilian state-run oil company continues to shed assets to help fund offshore drilling back home. A sale of the 100,000-barrel-a-day refinery will likely result in a loss for the company.

Petrobras acquired a 50% stake in the refinery in 2006, paying a subsidiary of Belgian commodities trader Transcor Astra Group S.A. about USD360 million.

Then, after a lengthy legal battle with its partner, Petrobras acquired the 50% it didn't already own in July. Petrobras paid USD820.5 million, with USD466 million set as the value of the property and the remainder covering legal fees and interest expenses.

Located it in Pasadena, Texas, just south of Houston, it is well positioned to receive the growing crude supplies coming out of shale formations in south and west Texas, Mr. Good said. And its location on the Houston Ship Channel connects it to important export markets, he said.

More than half of the Pasadena refinery's output is gasoline, a fuel for which demand is rising in Latin American countries.

Brazilian state-led oil company Petrobras announced its third-quarter profit had fallen as refining unit losses rose, an unexpected result after being granted its first wholesale fuel-price increase in six years in June.


MRC

Anti-dumping duty on Saudi polypropylene scrapped

(plastemart) -- India has lifted an anti-dumping duty on imports of a polypropylene from Saudi Arabia, as per Press Trust Of India.

The finance ministry said in a notification dated December 30 that it revokes the duty imposed on imports of the subject goods (polypropylene) originating in or exported from Saudi Arabia.

India had imposed a 6.5% duty on imports of polypropylene from Saudi Arabia, Oman and Singapore. The duty has been removed on imports from Saudi Arabia only.
MRC

Saudi Aramco to make offers in Jan 2013 for products from Fujian petchem co

(plastemart) -- Saudi Aramco has begun talking to prospective buyers for products from its Fujian Refining and Petrochemical Company (FREP) complex at Quangzhou in China's Fujian province.

FREP is a joint venture between Fujian Petrochemical Co. (50%), ExxonMobil China Petroleum and Petrochemical Co. (25%) and Saudi Aramco Sino Co. (25%). Fujian Petrochemical is a 50:50 JV between Sinopec and the Fujian provincial government.

The first offer is expected to be made in early January 2013, instead of the earlier announced November. Saudi Aramco will sell about 330,000 tpa of polymers from FREP, including about 100,000 tpa of low density polyethylene, 100,000 tpa of linear low density polyethylene, 100,000 tpa of high density polyethylene and 130,000 tpa of polypropylene.

FREP production facilities comprise an 800,000 tpa steam cracker, a 400,000 tpa PP plant, a 400,000 tpa LLDPE plant, a 400,000 tpa HDPE plant, a 120,000 tpa butadiene plant, a 700,000 tpa paraxylene plant and a 260,000 tpa benzene plant at Quanzhou.

Sales of Aramco's share of products produced by FREP have so far been handled by Saudi Basic Industries Co., or Sabic, which has a sales network in China. Saudi Aramco recently set up an office at Quanzhou and hired its own staff to handle the sales of its products.
MRC