Lukoil replaces reserves

MOSCOW (MRC) -- Lukoil, Russia's second-largest crude producer, said it had fully replaced oil and gas reserves in 2012 thanks to acquisitions and the upward revision of figures for the Caspian Sea region and Komi Republic, said Upstreamonline.

Like other Russian producers, Lukoil is facing a depletion of reserves and a decline in production at its deposits in West Siberia.

The company said that proven hydrocarbon reserves totalled 17.3 billion barrels of oil equivalent, including 13.4 billion barrels of oil and 23.5 trillion cubic feet of gas as of end-December, almost unchanged from the previous year under the US Securities and Exchange Commission (SEC) system of classification.

Lukoil has been pursuing a strategy of global expansion, given the competition at home from state-controlled energy companies including larger rival Rosneft. The largest shareholders in Lukoil are its president Vagit Alekperov and his deputy Leonid Fedun.

The company is developing the giant West Qurna-2 oilfield in Iraq and has also been exploring in West Africa.

Under Petroleum Resources Management System (PRMS) criteria, its resources totalled 10.3 billion barrels of oil equivalent by the end of last year, the company said.

As MRC wrote earlier, in late January 2013 a fire triggered by a release of hydrocarbons was reported to have broken out earlier this week at a Lukoil-operated field in the Timan-Pechora region of Russia. Company officials said the blaze did not result in any damage to the local environment. Russia's environmental watchdog Rosprirodnadzor has now launched an investigation of the incident.

Lukoil is Russia's second largest oil company and its second largest producer of oil. Headquartered in Moscow, Lukoil is the second largest public company (next to ExxonMobil) in terms of proven oil and gas reserves. The company has operations in more than 40 countries around the world.

MRC

Pemex HQ re-opens after gas blast

MOSCOW (MRC) -- Workers returning to the headquarters of Mexican state oil giant Pemex on Wednesday held a minute’s silence in memory of 37 colleagues killed by last week’s explosion, said Upstreamonline.

Director-general Emilio Lozoya Austin was on hand as the building in Mexico City, in which three floors were destroyed by the 31 January gas blast (see MRC news), reopened for business.

Lozoya Austin, who has been active with updates on the company’s situation on social media network Twitter, tweeted on Wednesday: "Today we resume work on at Pemex. I turn to welcome our colleagues, with pain, but with renewed hope."

All of the headquarters except for buildings B1 and B2 are reopening on Wednesday, exactly a week after the huge explosion ripped through the building, killing 37 and injuring over 120.

Pemex said earlier this week that it has not detected any new evidence of gas on the campus and that workers could return to the buildings that house most of its senior management in the executive tower and the skyscrapers A, C and D.

It added, however, that two buildings - B1 and B2 - will remain closed.

Pemex, Mexican Petroleum, is a Mexican state-owned petroleum company. Pemex has a total asset worth of USD415.75 billion, and is the world's second largest non-publicly listed company by total market value, and Latin America's second largest enterprise by annual revenue as of 2009. Company produces such polymers, as polyethylene (PE), polypropylene (PP), polystyrene (PS).

MRC

WACKER launches production at its new EVA dispersions plant in South Korea

MOSCOW (MRC) -- Wacker Chemie AG has officially launched its new production plant for ethylene-vinyl-acetate copolymer (EVA) dispersions at its Ulsan site in South Korea, according to the company's press release.

The additional 40,000 tonnes from the second reactor line increases the site’s EVA-dispersion capacity to a total of 90,000 tonnes per year. As MRC reported previously, the production capacity of the site has, thus, almost doubled, making the plant complex one of the biggest of its kind in South Korea.

The expansion is WACKER’s response to the rising demand for high-quality EVA dispersions, especially in Southeast Asia’s emerging markets. The project goal is to ensure sufficient capacities of VINNAPAS EVA dispersions now
and in the years ahead.

As a result, WACKER will be able to offer its customers in the region consistently high product quality and supply security over the long term. Having invested around EUR10 million in the expansion project, WACKER is strengthening its position as one of the world’s major suppliers of EVA dispersions.

According to MRC DataScope, in 2012, import volumes of Wacker's Vinnapas to the Russian market decreased by 16% year-on-year and amounted to 874 tonnes.

Wacker Chemie AG is a worldwide operating company in the chemical business, founded 1914. The company is controlled by the Wacker-family holding more than 50 percent of the shares. The corporation is operating more than 25 production sites in Europe, Asia, and the Americas. The product range includes silicone rubbers, polymer products like ethylene vinyl acetate redispersible polymer powder, chemical materials, polysilicon and wafers for semiconductor industry.


MRC

Samsung wins Iraq GSP contract from Gazprom

MOSCOW (MRC) -- Russia-based oil and gas company Gazprom's subsidiary Gazprom Neft has awarded an USD879m engineering, procurement and construction (EPC) contract to South Korea-based Samsung Engineering for its gas separation plant (GSP) in Badra, Wasit, Iraq, said Chemicals-technology.

As part of the contract, Samsung will build the central processing complex, including the GSP (200MMSCFD) and the utilities and offsites (U&O) facility.

The plant will produce 170,000 barrels of oil per day by 2017, as part of the oil development plan by the Iraqi Ministry of Oil, according to South Korean engineering company.

Construction of the plant is expected to be completed within the next 35 months.

Samsung Engineering marketing senior executive vice president Steve Fludder said: "We are thrilled to be a partner of Gazprom for the first time and to be a part of ambitious oil project of Iraqi government."

Samsung said other companies participating in the Iraqi oil project include South Korea's KOGAS, Malaysian oil and gas firm Petronas and Turkey's energy company TPAO.

As MRC wrote earlier, Gazprom's sales are likely to fall further in 2013 as weak economic conditions lead to continued low demand in Europe, the company"s key market for natural gas.

Gazprom is an open joint stock company, established in 1989 as a successor to the state run gas company. It explores and develops natural gas fields and extracts, processes, transports, stores and refines natural gas. It also supplies energy to domestic and foreign customers.

MRC

European PE prices for the CIS countries remain at the level of January

MOSCOW (ICIS-MRC) - In February, European producers kept export polyethylene prices for the CIS countries at the level of January, according to ICIS-MRC Price report.

The contract price of ethylene in Europe has remained at the same level for three consecutive months. Despite this, in January, European makers increased export PE prices for the CIS markets by EUR30-50/tonne, citing the lower margin of production. They also intended to raise prices for February, but low demand in the foreign markets did not allow them to implement their plans. In addition, the market situation is aggravated by the strong euro.

This week, negotiations on European polyethylene prices for the CIS markets for February went on. Many market participants report that they managed to keep PE prices for February at the level of January. Deals for high-density polyethylene (HDPE) were discussed in the range of EUR1,250-1,330/tonne, FCA. Price offers for low-density polyethylene (LDPE) were negotiated in the range of EUR1,320-1,380/tonne, FCA.

Yet, some market participants are still going to get PE price reduction for February, citing the stronger euro against the dollar. Since early January, the European currency has risen against the dollar by 4%.

Also, they cite prices of the producers from Asia and the U.S., as an argument. Price offers of Asian HDPE for February are voiced in the range of USD1,520-1,600/tonne, FOB. North American HDPE is offered on average at USD1,500-1,560/tonne, FAS Houston.
MRC