Negotiations underway for USD 3.5 bln petrochemical complex in Ain Sokhna

MOSCOW (MRC) -- Negotiations to establish a USD3.5 bln petrochemical complex in Ain Sokhna (Egypt) are underway, as per Head of the General Authority for Suez Canal Economic Zone (SCEZ) Ahmed Darwish, reported Plastemart.

The mega project is planned to be established within five years. Darwish added that investors are welcomed to finance the Suez Canal Zone projects, pointing out that the SCEZ is independent in terms of decision-making.

As MRC informed previously, in 2014, Egypt proposed three petrochemical projects to the UAE for a total investment of USD540 mln, according to a senior official at the Ministry of Petroleum. The projects included establishing a factory to produce bio-ethanol from molasses, the output of which would reach 100,000 tons of molasses annually, with investment in the project totaling USD250 mln. The project would be implemented in the next fiscal year (FY), according to the ministry’s plan.

Besides, in February 2015, CB&I was awarded a contract by Carbon Holdings for the license and engineering design of a polypropylene (PP) unit to be built in Ain Sokhna. The unit will be aligned to the Tahrir petrochemical complex and use CB&I's Novolen technology to produce 350,000 tpy of PP.
MRC

BP announces 3,000 downstream job cuts after historic annual losses

MOSCOW (MRC) --BP slumped to its biggest annual loss last year and announced thousands more job cuts on Tuesday, showing that even one of the nimblest oil producers is struggling in the worst market downturn in over a decade, as per Reuters.

The British oil and gas company, which is still grappling with about USD55 billion of costs from the oil spill in the Gulf of Mexico in 2010, said it would cut 7,000 jobs by the end of 2017, or nearly 9% of its workforce.

BP said it lost USD6.5 billion in 2015 and its fourth-quarter underlying replacement cost profit, which is the company's definition of net income, came in at USD196 million, well below analyst expectations of USD730 million.

BP shares fell as much as 8.5% and were 8.1% lower at 1136 GMT, the worst performer on the pan-European FTSEurofirst 300 index and on track for their biggest one-day fall since June 2010.

The company's 2015 loss shows that even its "shrink to grow" strategy adopted after the Macondo rig explosion in 2010, hailed as the best preparation for a weak oil market, was unable to buffer the impact of the lowest oil prices since 2003.

BP's results are the latest to show the extent large oil companies are struggling following a 70% slide in oil prices since the middle of 2014 that has forced them to cut tens of thousands of jobs and slash spending.

BP's 2015 annual loss was bigger than the overall loss of USD4.9 billion it reported in 2010, even though it took a USD17.2 billion hit in the second quarter of that year after the explosion in the Gulf of Mexico.

BP said if the current downturn persists for longer than anticipated, it would be able to reduce its costs further to allow its balance sheet to break even below USD60/bbl.

"Should current conditions persist for longer than anticipated, we expect that all the actions we are taking will capture more deflation," chief financial officer Brian Gilvary said in a statement.

BP reduced operating costs by USD3.5 billion last year and said it expected savings to reach USD7 billion by 2017.

It plans to cut 3,000 jobs in its downstream division by the end of 2017, on top of 4,000 cuts in its oil and gas production business announced last year.

"We are continuing to move rapidly to adapt and rebalance BP for the changing environment," CEO Bob Dudley said in a statement.

Despite lower revenue from oil production, BP's output rose 5.4% to 2.26 million bpd of oil equivalent.

We remind that, as MRC reported earlier, in 2015, BP Zhuhai Chemical Co Ltd started a new purified terephthalic acid (PTA). Located in Zhuhai, China, the plant has a production capacity of 1.25 million mt/year.

BP is one of the world's leading international oil and gas companies, providing its customers with fuel for transportation, energy for heat and light, retail services and petrochemicals products for everyday items.
MRC

Borealis receives two European plastics innovation awards for energy and automotive projects

MOSCOW (MRC) -- Borealis, a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers, has received two European Plastics Innovation Awards, said the producer in its press release.

Thus, they are:

- The New Surfaces for Plastic Parts Award for the Daplen EE112AE lightweight primerless paintable thermoplastic olefin (TPO) compound;
- The Best Lightweight Innovation Award for their cooperation with film manufacturer, Treofan, in creating the thinnest polypropylene capacitor film yet.

In 2015, European Plastics Converters (EuPC), PlasticsEurope and the Society of Plastics Engineers (SPE) launched their European Innovation Awards competition to acknowledge the work of companies in the plastics industry value chain that have developed a new idea, method, product or technology that responds to a societal need while respecting the three Ps of Sustainability (People, Planet, Profit).

The automotive industry has an increasing need for greater economy and efficiency in automotive exterior applications by reducing cycle time and system costs, while still meeting high production standards. Primerless painting systems can help achieve these parameters by eliminating a step in the production process. The New Surfaces for Plastic Parts Award was presented to Borealis for the primerless paint grade Daplen EE112AE, a 12% mineral-filled elastomer modified polypropylene (PP) compound, which was developed in close partnership with BMW for use in its top vehicle range and fulfils BMW's stringent paint adhesion quality requirements for primerless paint systems. It provides easy processability for low production scrap rate and reduced density with good impact/stiffness balance enabling the weight reduction of parts. This material was used in the BMW 7 front bumper and tailgate cladding.

For the Best Lightweight Innovation Award, Borealis was recognised together with Treofan, a global leader in biaxially oriented polypropylene (BOPP) films, for their cooperation in creating the thinnest polypropylene capacitor film, down to 1.9 µm. This film was made with Borclean HC310BF, a high crystallinity, super pure homo-polypropylene with a novel molecular design that enables the production of ultra-thin, metallisable dielectrical film for dry capacitors with increased thermal stability.

Polypropylene capacitor films are used in the production of dry, metalized capacitors for a variety of applications, but specifically in automotive applications for hybrid and electric motor systems, there is a need for high thermal stability and low volume in order to save space and reduce costs for the cooling systems. Thus, extremely thin films with a high level of thermal and electrical resistance are needed.

As MRC reported earlier, in June 2015, Borealis announced progress made to date on the start-up of the third phase expansion of its Borouge joint venture with Abu Dhabi National Oil Co. in Ruwais, Abu Dhabi. By the end of 2014, the 1.5-million-t/y ethylene cracker, as well as three of the five polyolefin plants had started production. During the first quarter of this year, Borouge continued this process with the start-up of its high-pressure polyethylene plant. The Borouge 3 expansion includes two Borstar enhanced PE plants with a combined capacity of 1.08-million t/y, a 350,000-t/y low-density PE plant and two Borstar enhanced polypropylene facilities having a total capacity of 960,000 t/y.

Borealis is a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers. With headquarters in Vienna, Austria, Borealis currently employs around 6,500 and operates in over 120 countries. It generated EUR 8.3 billion in sales revenue in 2014.
MRC

BP reports worst annual loss in 20 years

MOSCOW (MRC) -- Oil giant BP reported its worst annual loss in 20 years and further restructuring charges as low oil prices continue to weigh on the company, said Cnbc.

For 2015 as a whole, the company reported a loss of USD6.5 billion. The stock opened down over 5 percent in London trade. On an underlying basis, fourth quarter replacement cost profit came in at USD196 million, well below expectations of USD730 million in a poll of analysts provided by the company, and down from USD2.2 billion a year earlier.

Replacement cost profit is a common accounting measure to report profits in the oil industry which takes into account the fluctuations in the price of oil. Oil prices are wallowing around a 12-year low of around USD33 a barrel for benchmark Brent crude as demand fails to keep pace with a glut in global supply.

BP took USD2.6 billion in non-operating post-tax charges in the fourth quarter, primarily related to impairments of upstream assets as well as restructuring charges for the group. Including these charges and other offsetting effects, BP reported a replacement cost loss for the fourth quarter of 2015 of USD2.2 billion.

Cumulative restructuring charges from the beginning of the fourth quarter 2014 totaled USD1.5 billion by the end of 2015. A further USD1.0 billion of restructuring charges are expected to be incurred in 2016, the group said.

As MRC informed earlier, BP PLC is selling its petrochemical complex in Decatur, Alabama, to Indorama Ventures Public Co. Ltd. (IVL.TH), for an undisclosed sum, as part BP's plan to restructure its global petrochemicals business.

BP is a leading producer of oil and gas and produces enough energy annually to light nearly the entire country for a year. Employing about 17,000 people across the country, BP supports more than 170,000 additional jobs through all of its business activities.
MRC

Ashland completes acquisition of OCH International


MOSCOW (MRC) -- Chemical company Ashland Inc disclosed on Monday the completion of the acquisition of OCH International (Oil Can Henry`s) for an undisclosed value, said Tradingcharts.

OCH International reportedly operates and franchises a total of 89 quick-lube stores in six states. It is the 14th largest quick-lube network in the US and services 1m vehicles annually. It is producer and distributor of premium-branded automotive, commercial and industrial lubricants and automotive chemicals.

Based in Portland, Oregon, OCH International employs approximately 435 people and currently operates 47 company-owned stores and 42 franchise locations in Oregon (38 sites), Washington (29), California (11), Arizona (five), Idaho (three) and Colorado (three).

Following closing, Oil Can Henry will complement Ashland's existing Valvoline Instant Oil ChangeSM network of 956 company-owned and franchise stores, while also marking Valvoline`s entry into the quick-lube space in several new markets.

As MRC informed earlier, in September, Ashland announced its plans to focus on specialty chemicals, and spin off Valvoline as an independent, publicly-traded lubricants company dedicated to engine and automotive maintenance.

Ashland Inc. is a global leader in providing specialty chemical solutions to customers in a wide range of consumer and industrial markets, including adhesives, architectural coatings, automotive, construction, energy, food and beverage, personal care and pharmaceutical. Through our three business units - Ashland Specialty Ingredients, Ashland Performance Materials and Valvoline - we use good chemistry to make great things happen for customers in more than 100 countries.
MRC