Indian Oil to expand its refinery in Gujarat

MOSCOW (MRC) -- Indian Oil Company (IOC) is likely to expand the production capacity of its refinery in the western Indian state of Gujarat, as per Apic-online.

A Polymerupdate source in India informed that production capacity of the refinery is planned to be increased from 13.5 million mt/year to 18 million mt/year. The capacity expansion will be undertaken at a cost of Rs 5,500.

The expansion is likely to be completed in 2016-2017.

The refinery is located in the western Indian state of Gujarat.

As MRC wrote before, Indian Oil Corp is planning a Rs 30,000 crore refinery on the west coast in Gujarat or Maharashtra as part of its plans to raise the refining capacity to 100 mln tons. IOC has seven refineries totalling 54.2 mln tons and a 11.5 mln ton subsidiary - Chennai Petroleum Corp Ltd (CPCL).

Besides, India may offer a stake to Iraq in state-run Indian Oil's upcoming refinery in eastern India as part of a long-term oil-supply arrangement with the Middle Eastern country. At present, Indian Oil is building the refinery in the eastern state of Orissa with a crude-processing capacity of 15 million tpy. It is expected to cost about 298 billion rupees (USD4.38 billion), according to Indian Oil's website.

Indian Oil Corporation Limited, or IndianOil, is an Indian state-owned oil and gas corporation with its headquarters in New Delhi, India.
MRC

November prices of DOP plasticizer roll over in Russia for December

MOSCOW (MRC) -- Russian producers of dioctyl phthalate (DOP) plasticizer have rolled over their November prices for December shipments, despite increases in feedstock prices, according to MRC Price report.

December prices for alcohol of 2-ethylhexanol (one of the main components of the plasticizer production) rose in the Russian market by Rb1,000/tonne from November, increasing plasticizer prices to Rb730/tonne. However, Russian producers of DOP plasticizer were forced to maintain November prices for December shipments amid weaker demand from key customers, producers of non-rigid PVC.

Deals for December shipments of Russian plasticizer were in the range of Rb69,000-70,000/tonne FCA, including VAT.

DOP plasticizer (dioctyl phthalate) is used to plasticize vinyl resins (SPVC, EPVC), copolymers of vinyl chloride in the production of cable flexible PVC, artificial leather, rubber products, plastic building materials, packaging films.
MRC

Russia 'set to widen shale oil tax breaks'

MOSCOW (MRC) -- Russia is likely to grant a request from Surgutneftegas to widen the qualification criteria for the country’s tax breaks on shale oil, said Upstreamonline.

Energy minister Alexander Novak said that "Surgutneftegas has asked us to change some criteria and parameters applicable to the breaks.

“We are likely to support this initiative," Novak told Reuters.

Russia introduced the tax measures in September as part of efforts to incentivise shale oil production in west Siberia, where depleting mature fields threaten to sink the country’s world-leading output below 10 million barrels per day.

One of the measures involved scrapping export duty for new fields with shale oil where reserves depletion is less than 5%. Novak said that Surgut had asked to expand the base for fields that with a depletion level of up to 10%.

As MRC wrote before, Lukoil and Surgutneftegas have announced that they were leaving the consortium of Russian oil companies in Venezuela, citing a need to focus on other projects.

Surgutneftegaz is a Russian oil and gas company. It was created in 1993 by merging several previously state-owned companies owning large oil and gas reserves in Western Siberia. The company's headquarters are located in Surgut, Tyumen Oblast.
MRC

UK, trade groups tell U.S. court ban against BP unfair

MOSCOW (MRC) - The U.S. Environmental Protection Agency may have been too harsh when it banned BP Plc from lucrative federal contracts as punishment for its 2010 Macondo oil spill, said Reuters.

The UK government, the American Petroleum Institute and the U.S. Chamber of Commerce said the EPA has caused regulatory uncertainty and soured the broader investment climate by barring the British oil major from acquiring new leases in the U.S. Gulf of Mexico or entering deals to supply the U.S. military with fuels.

In briefs submitted to a U.S. court, the groups made clear they support a lawsuit BP filed in August to challenge the ban, which impacts new contracts but not existing ones.

The EPA sprung the suspension on BP a year ago, citing its "lack of business integrity" after the well blowout that killed 11 workers and gushed millions of barrels of oil into coastal waters in the worst offshore spill in U.S. history.

The aftermath of the accident caused tension in 2010 between Washington and London. The UK government said despite its criticisms of the EPA, it "recognizes the grave consequences" of the spill. BP has already set aside USD42.4 billion in provisions to deal with the aftermath of the spill.

Early next year, U.S. District Judge Carl Barbier is expected to decide how much BP should be fined under the Clean Water Act for the spill - with billions of dollars in potential liabilities at stake.

This week, the trial started of a former BP engineer, Kurt Mix, who allegedly deleted text messages and voicemails about the estimated size of the spill. He has pleaded not guilty to charges of obstruction of justice.

As MRC wrote before, the 20 April 2010 explosion of the Deepwater Horizon at the Macondo well site killed 11 people and triggered several hundred lawsuits against BP and its drilling partners, including rig owner Transocean and cementing-service provider Halliburton.
MRC

Turkish group buys global additives firm Chemson

MOSCOW (MRC) -- Turkish industrial conglomerate Oyak Group has acquired PVC additives producer Chemson AG, said Plasticsnews.

The companies announced that Oyak bought Chemson's shares from Austrian private equity fund Buy-Out Central Europe II Beteiligungs-Invest AG, effective Nov. 8. Financial details of the purchase are being kept confidential, the statement said.

Ankara-based Oyak is one of the largest industrial groups in Turkey, with subsidiaries in various industries, including steel, cement and automotive, which employ a total of 35,000. It also owns Akdeniz Kimya, which produces PVC stabilizers and other polymer additives at its facilities in Izmir, Turkey.

"The transaction creates a new, backward-integrated enterprise with clear world market leadership in PVC stabilizers," the statement said.

Chemson is a major producer of stabilizers and processing aids for PVC used in windows and profiles, pipe, injection molding, and soft PVC application such as cables, flooring and roof sheets. The company produces approximately 100,000 metric tonnes of additives per year.

Chemson is based in Arnoldstein, Austria, and also has production centers in Cologne, Germany; Newcastle, England; Rio Claro, Brazil; Dalian City, China; Philadelphia; and Eastern Creek, Australia.

As MRC wrote before, SOCAR Turkey Enerji intends to become the country's most profitable company by 2023, the head of SOCAR Turkey Enerji and board member of the Petkim Petrochemical Holding Kenan Yavuz told. Acccording to him, currently SOCAR Turkey Enerji is the largest investor in the history of Turkey. It is expected that company's export of chemical production will total to USD5 billion by late 2013.
MRC