European producers raise PE prices for CIS markets by EUR30- 60/tonne

MOSCOW (MRC) -- European producers have announced a necessity to raise September export polyethylene (PE) prices for the CIS markets by EUR30-60/tonne amid rising feedstock prices, according to a ICIS-MRC Price report.

The hike in oil prices in late August because of the conflict in the Middle East has led to a major increase in ethylene prices. The September contract ethylene price in Europe was agreed by EUR50/tonne higher from August. European producers announced a need to increase PE prices following higher feedstock prices (ethylene).

Negotiations on September European export PE prices for the CIS markets began this week. Offers for low density polyethylene (LDPE) grew by an average of EUR40- 50/tonne from August and were heard in the range of EUR1,350-1,400/tonne FCA.

Offers for high density polyethylene (HDPE) rose by EUR30- 60/tonne from August and were heard in the range of EUR1,230-1,280/tonne FCA for blow moulding and film PE.

Many market participants said European producers still limit export quotas. There is a strong shortage of blow moulding and pipe HDPE supply.
MRC

MOSCOW (MRC) -- The financial investment firms (SIF) in Romania are considering the option of setting up a consortium that will attempt to save Oltchim, the state-owned petrochemical plant, according to Business Review.

Costel Ceocea, president of SIF Moldova, made the proposal during a meeting with Varujan Vosganian, the economy minister.

Oltchim went into administration in January after a failed privatization attempt and the government is currently looking for investors willing to acquire its 54.8% stake in the beleaguered company.

"In the opinion of our dialogue partners, this consortium is interested in the operation of the plant after its privatization and their intention is to invest in a project integrating the Oltchim Ramnicu Valcea and Chimcomplex Borzesti plants, which has as strong points the advantageous geographical position, the international export markets that can absorb 70% of the output, modernized installations, most of which are competitive from the point of view of costs," said the Ministry of Economy in a statement.

Oltchim’s insolvency status and certain financial figures were presented during the meeting.

The Ministry of Economy said on Wednesday that Russian group Oil Gas Trade is interested in acquiring the platform in Ramnicu Valcea, the petro-chemical division in Bradu and the Arpechim Refinery, owned by OMV Petrom. The group said it would invest EUR 300 million in the integrated plant, following its acquisition.

PCC SE, the minority shareholder in Oltchim, teamed up with Fortissimo Capital, an Israel-based investment fund. The newly formed consortium said on Tuesday it planned to place a bid in Oltchim and allot funds to meet its investment needs.

PCC holds a stake of 18.3% in Oltchim, and controls another 14% of the shares through POLYOLT HOLDING LIMITED, a Cyprus-based company.

Shares in Oltchim are suspended from trading on the Bucharest Stock Exchange because of the insolvency procedure.

As MRC informed previously, the Romanian government approved Oltchim's insolvency on January 23, 2013, with a consortium made of Rominsolv SPRL and BDO Business Restructuring RPRL as judiciary administrator. This was soon after the state failed to privatize Oltchim in a first privatization stage, which was won by media mogul Dan Diaconescu, who failed to pay the pledged amount.

The state announced it was seeking European Commission (EC) approval to grant the factory state aid. The government is requesting approval for some EUR 45 million in state aid for Oltchim in the much delayed and still ongoing privatization process of the state owned facility.

Oltchim S.A. manufactures and exports a wide range of diversified chemical products. The Company has five main segments: chloro-alkali products, macro- molecular products, chlorinated solvents, and pesticides. Oltchim"s primary products are caustic liquid soda and solid chlorine, hydrochloric acid and sodium hypochlorite.
MRC

MOSCOW (MRC) - ConocoPhillips said an arbitration panel of the World Bank ruled that Venezuela unlawfully expropriated the firm's oil investments in the South American country in 2007, causing a charge of about USD4.5 billion, as per Reuters.

The company's Petrozuata and Hamaca heavy crude oil projects and its offshore Corocoro development were taken over during the left-wing administration of deceased former President Hugo Chavez.

The company said the arbitration process of the International Centre for Settlement of Investment Disputes will continue for some time to figure out compensation owed.

Simmons & Co, a Houston-based energy investment bank, said it was too early to know if ConocoPhillips would be able to collect any payments.

A determination of a final award could take one or two more years, followed by an annulment procedure that could last up two years, Simmons said.

As MRC wrote before, ConocoPhillips has struck a USD720 million deal to sell off its 100% stake in the Clyden oil sands lease in Canada to ExxonMobil and Imperial Oil. Clyden comprises 226,000 net acres of undeveloped acreage in the Athabasca oil sands region of north-east Albert, where ConocoPhillips holds about 1.1 million net acres of land estimated to hold 16 billion barrels of net bitumen resources.

ConocoPhillips Company is an American multinational energy corporation with its headquarters located in the Energy Corridor district of Houston, Texas in the United States. It is the world's largest independent pure-play exploration & production company and is also one of the Fortune 500 companies. ConocoPhillips was created through the merger of Conoco Inc. and the Phillips Petroleum Company on August 30, 2002 and was the fifth largest integrated oil company until spinning off its downstream assets to Phillips 66.
MRC

MOSCOW (MRC) - The U.S. government allegedly spied on Brazilian state-run oil company Petroleo Brasileiro SA, known as Petrobras, according to the web site of Globo, Brazil's biggest television network, said Reuters.

The network, which a week ago aired a report alleging that the U.S. National Security Agency intercepted communications by the presidents of Brazil and Mexico, said its information again came from Glenn Greenwald, an American activist who has worked with fugitive former NSA analyst Edward Snowden to expose the extent of U.S. spying at home and abroad.

Promotional teasers from the network said it would give details of the spying on Sunday night, again on its "Fantastico" program.

Greenwald, a blogger and civil liberties activist who lives in Rio de Janeiro, declined to discuss the Petrobras allegations until after the program airs. Petrobras officials could not be reached for comment.

New revelations of U.S. spying could complicate a diplomatic row between the United States and Brazil sparked by the allegations of NSA spying on the private phone calls and emails of Brazilian President Dilma Rousseff.

Brazil has demanded a formal apology and Rousseff aides have said the issue could derail a state visit she is due to make to the United States in October.

The tensions last week led to an impromptu meeting between Rousseff and U.S. President Barack Obama on the margins of the G20 meeting in Russia. Obama said he would investigate the allegations.

Any spying on Petrobras, which has discovered some of the world's biggest offshore oil reserves in recent years, is sure to raise hackles in Brazil, a country that has long been suspicious of foreign designs on its abundant natural resources.

Brazil's so-called sub-salt polygon, where many of the new finds have been discovered, may contain as much as 100 billion barrels of oil, according to Rio de Janeiro State University. One find alone, the giant Libra field, has estimated reserves of up to 12 billion barrels of oil, or enough to supply all U.S. oil needs for nearly two years.

As MRC wrote before, an Argentinian court order has determined the shutdown of Bahia Blanca city's refinery, property of Brazilian oil and gas giant Petrobras. The facility, located in Argentina's Buenos Aires province was closed as of 6 am on Friday for an indefinite period of time as its effluents discharge certificates are said to be overdue since 2003, while the environmental permits have expired four years ago.

Petroleo Brasileiro S.A. or Petrobras is a semi-public Brazilian multinational energy corporation headquartered in Rio de Janeiro, Brazil. It is the largest company in the Southern Hemisphere by market capitalization and the largest in Latin America measured by 2011 revenues.
MRC

MOSCOW (MRC) -- Effective September 20, 2013, or as contracts allow, Arkema Coating Resins, an affiliate of Akrema, a France-based chemical manufacturer, will increase the price of acrylic and styrene acrylic latex products sold in North America, according to the company's press release.

The price of ENCOR and SNAP acrylic and styrene-acrylic, and NEOCAR Acrylic latexes will increase by 5% to 15% per wet pound.

The price of Celocor opaque polymer will increase by 5% to 10% per wet pound. ENCOR styrene-acrylic hard resins will increase by 5% to 10% per pound.

This action is necessary due to escalation in the cost of raw materials and transportation for these products.

As MRC wrote previously, Arkema has recently announced a comprehensive range of PEKK (Poly Ether Ketone Ketone) ultra high performance polymers comprised of three families of products whose properties meet the requirements of aerospace, oil exploration and electronics applications. These new materials significantly expand Arkema’s high performance materials offerings to high added value markets.

Arkema is a leading European supplier of chlorochemicals and PVC. Kynar and Kynar Flex are registered trademarks of Arkema Inc. As MRC reported previously, Moody's Investors Service had upgraded Arkema S.A.'s senior unsecured rating to Baa2 from Baa3. The outlook on the rating was changed to stable from positive.
MRC