Mario Mehren to head BASF subsidiary Wintershall

MOSCOW (MRC) -- Mario Mehren, currently a member of the Board of Executive Directors of Wintershall responsible for Exploration & Production Russia, North Africa and South America, has been named President of BASF’s Oil & Gas division effective July 1, 2015, and in this function will be head of BASF’s subsidiary Wintershall, as per BASF's press release.

He succeeds Dr. Rainer Seele, who has been named CEO of OMV Aktiengesellschaft, Vienna, Austria, effective July 1, 2015. Seele has been head of Wintershall since 2009.

"Over the past years, Rainer Seele has contributed significantly to expanding and further strengthening the position of Wintershall as the largest internationally operating German oil and gas company. We wish him much success in his new position," said Dr. Kurt Bock, Chairman of the Board of Executive Directors of BASF SE.

As MRC wrote before, Wintershall is continuing its growth course in Norway. By acquiring shares in the production fields Gjoa (5%) and Vega (24.5%) in December 2014, Wintershall is increasing its production in Norway from about 40,000 barrels of oil equivalent (boe) to about 60,000 boe per day.

Wintershall Holding GmbH, based in Kassel, Germany, is a wholly-owned subsidiary of BASF in Ludwigshafen. The company has been active in the extraction of natural resources for 120 years, and in the exploration and production of crude oil and natural gas for over 80 years. Wintershall focuses on selected core regions where the company has built up a high level of regional and technological expertise. These are Europe, Russia, North Africa, South America, and increasingly the Middle East region.

BASF is the world’s leading chemical company. Its portfolio ranges from chemicals, plastics, performance products and crop protection products to oil and gas. BASF had sales of over EUR74 billion in 2014 and around 113,000 employees as of the end of the year.
MRC

Trinseo raised PS prices in Asia Pacific

MOSCOW (MRC) -- Trinseo (Hong Kong) Limited and its affiliate companies in Asia Pacific has announced price increases for all polystyrene (PS) grades, reported the company on its site.

Effective immediately, or as existing contract terms allow, the prices for the products listed below will increase as follows based on the price released for March 2015:

- STYRON general purpose polystyrene grades (GPPS) - by USD50/tonne;
- STYRON and STYRON A-TECH high-impact polystyrene grades (HIPS) - by USD50/tonne.

"The price increase responds to the rising costs associated with the manufacturing of polystyrene grades in Asia Pacific." said Samer Al Jabi, Global Product Director for Styrenics.

This represents a furthe price increase of PS grades in Asia Pacific, as in early March, Trinseo already increased its PS prices for the products listed below, as follows:

- STYRON general purpose polystyrene grades (GPPS) - by USD120/tonne;
- STYRON and STYRON A-TECH high-impact polystyrene grades (HIPS) - by USD120/tonne.

As MRC reported before, in March, Trinseo also announced price increases for all PS and copolymer, as follows:

- STYRON general purpose polystyrene grades (GPPS), STYRON and STYRON A-TECH high impact polystyrene grades (HIPS) - by EUR195/tonne;
- MAGNUM ABS and TYRIL SAN resins - by EUR155/tonne.

Formerly known as Styron, Trinseo has completed the name change process for most legal entities around the world. Some Styron companies are still completing this process and will continue to do business as Styron until their respective name changes are complete.

Trinseo is a global materials company and manufacturer of plastics, latex and rubber. Trinseo’s technology is used by customers in industries such as home appliances, automotive, building & construction, carpet, consumer electronics, consumer goods, electrical & lighting, medical, packaging, paper & paperboard, rubber goods and tires. Formerly known as Styron, Trinseo completed its renaming process in 1Q 2015.
MRC

Fire broke out at Sadara Chemical site in Jubail, Saudi Arabia

MOSCOW (MRC) -- Sadara Basic Services Company has announced that a fire broke out in one of the cooling towers under construction at the Sadara Chemical Company (the Parent) project site in Jubail Industrial City II at 9 pm on Saturday, 28 March, 2015, reported Tawadul.

The competent authorities were notified and they were able to contain the fire without any injuries.

Construction at the project site is continuing as normal.

Following completion of the assessment of damages, Sadara Basic Services Company will issue a supplemental announcement regarding the financial impact of the fire and any other relevant details.

As MRC wrote previously, in June 2013, Dow Chemical, an American multinational chemical corporation, announced the signing of the main financing for the Sadara project.

Sadara Chemical Company (Sadara), Dow's joint venture with Saudi Aramco, entered into definitive agreements with certain export credit agencies, commercial banks and the Public Investment Fund of the Kingdom of Saudi Arabia for approximately USD10.5 billion of additional project financing.

The financing supplements the USD2 billion raised through a Sukuk Islamic bond issuance in April, 2013, bringing the total Sadara project financing raised to approximately USD12.5 billion, which will be used to fund the construction and start-up of the joint venture.
MRC

Asahi Glass increasing PVC capacity by 50% at Phu My Plastics subsidiary in Vietnam

MOSCOW (MRC) -- Asahi Glass Co Ltd (AGC) has announced that it will increase the production capacity of the polyvinyl chloride (PVC) facility at Phu My Plastics & Chemicals Co Ltd (PMPC), AGC’s subsidiary engaged in PVC business in Vietnam, said Business-Standart.

In order to respond to the growing PVC demand in the country, PMPC’s PVC production capacity will be increased by 50% to 150,000 tonnes from the current 100,000 tonnes per year, which will make the Asahi Glass Group’s total PVC production in Southeast Asia 700,000 tonnes per year. The operation is scheduled to commence at the beginning of 2016.

Vietnam is the third largest PVC market in Southeast Asia following Thailand and Indonesia, and the PVC demand is growing at the similar level as the country’s GDP. Following the completion of the acquisition process in 2014, this investment will further strengthen the AGC Group’s business foundation in the Vietnamese polyvinyl chloride market which is expected to continue to grow.

After the completion of the capacity enhancement, PMPC will have PT Asahimas Chemical (ASC) as its main VCM supplier. ASC is one of AGC’s subsidiaries in Indonesia and currently working to enhance its production capacity.

As MRC informed earlier, Petronas sold its stake in Vietnamese Phu My Plastics and Chemical Company Ltd (PMPC) to Japanese Asahi Glass Co Ltd and Mitsubishi Corporation in November 2013.

Asahi Glass Co., Ltd., more commonly known as AGC, is a global glass manufacturing company, headquartered in Tokyo. It is one of the core Mitsubishi companies.
MRC

Total completes USD1 bn of onshore divestments

MOSCOW (MRC) -- French oil giant Total said that it has sold its stake in a Nigerian oil field to a local company for USD569 million (523 million euros), said Reuters.

Total's sale of its share in the onshore Oil Mining Lease 29 to Aiteo Eastern E&P comes after the French group made two similar divestments in Nigeria. The three transactions reached a sum of USD1 billion.

"These transactions ... reduce our exposure to non-operated blocks onshore Nigeria, and allow us to focus on our core, operated developments," said Patrick de La Chevardiere, Total's Chief Financial Officer.

The group added that the divestment is "in line with the Federal Government of Nigeria's aim of developing Nigerian companies in the sector".

Energy groups have been slashing their investments in a bid to shore up earnings, as crude prices have collapsed by about 60 percent since June.

As MRC informed earlier, Total acquired a majority 68% interest in Germany's Polyblend. Polyblend produces compounds, which are blends of polymers (polyethylene and polypropylene) and other ingredients such as mineral fillers, glass fibres, elastomers and additives, formulated to customer specifications.

Total S.A. is a French multinational oil and gas company and one of the six "Supermajor" oil companies in the world with business in Europe, the United States, the Middle East and Asia. The company's petrochemical products cover two main groups: base chemicals and the consumer polymers (polyethylene, polypropylene and polystyrene) that are derived from them.
MRC