Petrobras, Technip in pipeline pact

MOSCOW (MRC) -- Brazilian state-run energy giant, Petroleo Brasileiro SA or Petrobras ( PBR ) has awarded two ultra-deepwater contracts to the project management, engineering and construction company, Technip ( TKPPY ). However, the value of the contracts has not been disclosed, said Nasdaq.

The French company would deliver flexible pipes of about 100 kilometers that would support oil production, gas lift and gas injection. These pipelines will be supplied to the Sapinhoa Norte field and I5 at Lula field, in the Santos Basin, offshore Brazil which lay at water depths of around 2,500 meters.

The contract by Petrobras also includes supply of related equipment for the floating production storage and offloading (FPSO) units, Cidade de Angra dos Reis and Cidade de Ilhabela.

The gas injection top risers have been developed by Technip in its Flexi France plant in Le Trait and production of these, along with a major portion of the other equipment will be carried out at a new manufacturing facility in Brazil, Flexibras Acu. Production is expected to start in the first quarter of 2014.

The remaining equipment for the contract will be manufactured in Flexibras Vitoria. The engineering and project management activities will be performed at the company's Rio de Janeiro operating center.

As MRC wrote before, Petrobras was in talks to sell off its Argentine unit as part of a USD9.9 billion divestment plan.

Headquartered in Rio de Janeiro, Petrobras is an integrated energy firm. Petrobras' activities include exploration, exploitation and production of oil from reservoir wells, shale and other rocks as well as refining, processing, trade and transport of oil and oil products, natural gas and other fluid hydrocarbons, in addition to other energy-related activities.

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Fujian Refining and Petrochemical shut PP plant in China

MOSCOW (MRC) -- Fujian Refining & Petrochemical (FREP) has shut a polypropylene (PP) plant owing to technical issues, as per Apic-online.

A Polymerupdate source in China informed that the plant was shut on December 29, 2013. A restart date for the plant could not be confirmed.

Located in Fujian province, China, the plant has a production capacity of 330,000 mt/year.

As MRC informed earlier, in November 2013, Saudi Aramco begun talking to prospective buyers for products from its Fujian Refining and Petrochemical Company (FREP) complex at Quangzhou in China's Fujian province. 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 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.
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Taiwanese companies to build petrochemicals complex in Fujian with Sinopec

MOSCOW (MRC) -- A consortium of Taiwanese companies is proposing to build a petrochemicals complex in China's Fujian province with state-owned Sinopec, as per Apic-online with reference to Taiwan's Commercial Times newspaper's report.

The report said six Taiwanese companies, including USI Corp. and Ho Tung Chemical Corp., have formally applied to the Investment Commission at Taiwan's Ministry of Economic Affairs for the project, which is expected to require a total investment of USD15 billion, although the initial outlay is estimated to be Yuan 9.6 billion (USD1.6 billion).

Sinopec is expected to own a 50% stake in the project while the Taiwanese companies will own the remainder, according to the report.

The facility, to be located in Gulei in southern Fujian province, will be able to produce 1.2 million mt/year of ethylene and 700,000 mt/year of propylene.

As MRC wrote before, in late 2013, Taiwan's government officially lifted its ban on investment by the country's petrochemical sector in naphtha cracking facilities in China. Certain restrictions still apply to such investment projects, however, including that one company is only allowed to take part in one project.

China Petroleum & Chemical Corporation (SINOPEC) is a large scale integrated energy and chemical company with upstream, midstream and downstream operations. Sinopec is the worlds seventh biggest company by revenue.
Sinopec is China's largest manufacturer and supplier of major petrochemical products. It is the second largest producer of crude oil in China. Its refining capacity and ethylene capacity rank No.2 and No.4 globally. Sinopec has reported first-half 2013 net income of 30.281 billion yuan (USD4.85 billion), up 23.6% year over year.
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Arkema cuts full-year earnings guidance

MOSCOW (MRC) -- Chemical company Arkema SA cut its full-year earnings guidance, after one of its businesses faced difficulties amid delayed return on investments and supplier issues, said Marketwatch.

Arkema said that it now forecasts an Ebitda--earnings before interest, taxes, depreciation and amortization--of around EUR900 million (USD1.22 billion) for the full year 2013, lowering anticipations from the EUR920 million previously expected.

The company said that profit warning resulted from issues in its Thiochemicals division including "a longer than expected commissioning period for new investments" made in France and "the failure of its power supplier at its Beaumont site" in the U.S.

"These exceptional events, together with lower than anticipated Fluorogas volumes, will impact the fourth quarter 2013 EBITDA of the Industrial Specialties segment," said the company in a statement.

Arkema said that its other two business segments are set to report performances in line with expectations. The company added that its targets for 2016 and 2020 remain unchanged.

Arkema will publish its annual results for 2013 on March 4th.

As MRC informed before, Arkema officially started its new 60,000 MTY emulsion polymers facility on its Changshu platform. The plant, part of Arkema’s Coating Resins business unit, will serve customers in the Asia Pacific region with a full line of waterborne emulsion polymers for coatings and adhesives applications.

Arkema is a leading Specialty Chemicals and Advanced materials Company headquartered in Colombes, near Paris, France. Created in 2004 when French oil major Total restructured its Chemicals business, Arkema was introduced at the Paris stock exchange in May 2006. Arkema has 85 production plants in Europe, North America and Asia.
Arkema is organized into three business segments: Coating solutions, Industrial Chemicals and Performance Products.
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AkzoNobel completes sale of Primary Amides business to PMC Group

MOSCOW (MRC) -- AkzoNobel has completed the sale of its Primary Amides chemicals business to PMC Group effective December 31, 2013, said the producers in its press release.

Financial details were not disclosed. Under the terms of the agreement, a manufacturing facility in Kyungju, South Korea, and all 37 employees will transfer to PMC Group with immediate effect, along with the erucamide, oleamide and other primary and secondary amides sold under the Armoslip trade names.

The sale follows a review of the business' fit within AkzoNobel's Functional Chemicals portfolio, where it operated as a standalone activity. "Our focus is on extending our leading market position in organic peroxides and metal alkyls, as evidenced by our recent expansion investments in China, the US and Mexico," explained Werner Fuhrmann, AkzoNobel’s Executive Committee member responsible for the Specialty Chemicals business.

Added Debtosh Chakrabarti, President of PMC: "We are excited about this acquisition, which adds to our portfolio of specialty chemicals derived from renewable oleochemicals. The business complements PMC’s leading global position in polymer additives and provides us with a strong manufacturing location in Asia for these specialty products."

Primary Amides products are used primarily in the polymer industry to create plastics bags and plastic films for packaging.

As MRC informed before, in October 2013 AkzoNobel finalized the EUR260 million divestment of its Building Adhesives business to Sika AG.

Akzo Nobel N.V., trading as AkzoNobel, is a Dutch multinational, active in the fields of decorative paints, performance coatings and specialty chemicals. Headquartered in Amsterdam, the company has activities in more than 80 countries, and employs approximately 55,000 people.
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