US crude stocks fall unexpectedly in week: EIA

MOSCOW (MRC) -- US crude stocks fell unexpectedly last week, while gasoline stocks decreased more than expected and distillate inventories rose, said Hydrocarbonprocessing, citing data from the Energy Information Administration.

Crude inventories fell by 2.5 MMbbl in the last week, compared with analysts' expectations for an increase of 522 Mbbl.

Crude stocks at the Cushing, Oklahoma, delivery hub fell by 724 Mbbl, EIA said. "While the numbers are bullish in terms of headlines and we could see crude rally further on more rhetoric ahead of the informal OPEC-and-rest meeting, we feel all these are already baked into the cake," said Tariq Zahir, trader in crude oil spreads at Tyche Capital in New York.

WTI crude futures for September delivery fell USD0.14 to USD46.44/bbl, at 11:51 a.m. Eastern (15:51 GMT). WTI prices traded at a high point for the day of USD46.79 and a low of USD45.84/bbl. Brent crude futures for October delivery rose USD0.16 to USD49.39/bbl.

Refinery crude runs rose by 268 Mbpd, EIA data showed. Refinery utilization rates rose by 1.3%. Gasoline stocks fell by 2.7 MMbbl, compared with analysts' expectations in a Reuters poll for a 1.6 MMbbl drop.

Distillate stockpiles, which include diesel and heating oil, rose by 1.9 MMbbl, versus expectations for a 742 Mbbl drop, the EIA data showed. US crude imports fell last week by 211 Mbbl.
MRC

MOSCOW (MRC) -- Exxon Mobil Corp. won a bidding war to buy U.S.-listed InterOil Corp. for an estimated USD2.5 billion after Oil Search Ltd. dropped out of the process, said The Wall Street Journal.

The boards of Exxon and InterOil unanimously approved terms of the USD45-a-share agreement that has the potential for an additional cash payment, the companies announced. The deal is expected to close in September, subject to shareholder and regulatory review.

In May, Oil Search offered USD2.2 billion for InterOil, which holds six licenses to develop energy projects in Papua New Guinea that cover four million acres. InterOil has announced plans to build a massive liquefied natural gas export terminal in Papua New Guinea, using the large Elk-Antelope field as an anchor for the project.

Exxon Mobil developed the first gas-exporting plant in the country. The PNG LNG plant is a nearly USD20 billion megaproject on the island north of Australia that first began shipping gas cargoes two years ago. InterOil’s proposed LNG project in Papua New Guinea was seen as posing stiff competition for Exxon’s existing customers.

As MRC informed earlier, ExxonMobil and its partners BP and ConocoPhillips have decided not to move forward with their JV, Alaska LNG, as they believe that current market conditions make the project unprofitable. The project is estimated to cost USD45 B-USD65 B.

InterOil is an independent oil and gas business focused on Papua New Guinea. Its assets include one of Asia's largest undeveloped gas fields. The company’s main offices are in Singapore and Port Moresby, Papua New Guinea. InterOil is listed on the New York and Port Moresby stock exchanges.

ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world's oil and about 2% of the world's energy.
MRC

MOSCOW (MRC) -- Federated Co-Operatives Ltd.’s refinery complex in Regina, Saskatchewan, Canada, is installing General Electric’s advanced water recycling technology for a wastewater improvement project that will enable the refinery to clean 100% of its wastewater on-site, said Hydrocarbonprocessing.

Once fully operationally, the Co-op Refinery Complex will be the only refinery in North America to recycle all of its wastewater for steam production, which is used for heating, hydrogen production, to power equipment and for cooling towers.

Several years ago, the refinery expanded its operations to produce 30 Mbpd more, taking it from 100 Mbpd to a 130 Mbpd facility, which increased its water usage. The refinery’s current water source is a blend of well water and city water, and restrictions on water use mandated that the Co-op Refinery Complex had to find a new source of water. GE offered a solution combining membrane bioreactor technology and a high-efficiency reverse osmosis system to recycle and reuse 2 M gallons of wastewater a day. In addition to the water reuse solution, GE provides the refinery with wastewater specialty chemicals and monitoring solutions to provide system optimization.

After commissioning, the refinery will reduce its use of freshwater by 28%, which is the equivalent of approximately 3,100 households in Regina, on an annual basis. By recycling 100% of its wastewater on-site, the Co-op Refinery Complex will significantly decrease volatile organic compound emissions from its wastewater ponds and reduce the associated nuisance odors. The wastewater improvement project is expected to be fully operational by the fall of 2016.
MRC

МОSCOW (MRC) -- The Board of Directors of A. Schulman, Inc. announced that Chairman Joseph M. Gingo has been named chief executive officer and president, effective immediately. Gingo (71) had previously served in this capacity from 2008 through 2014, said the company on its site.

The Board and Bernard Rzepka (56), president and chief executive officer, have mutually agreed that he will relinquish his officer role and his directorship role.

"Joe led this Company through a remarkable seven-year renaissance as its chief executive officer and the Board is confident that he will restore A. Schulman's operational and financial performance to the high level our shareholders expect," said David Birney, lead independent director. "We thank Bernard for his dedicated service to A. Schulman during the last 24 years. His many contributions throughout his career with the Company should not be overlooked or minimized in light of this transition."

According to Gingo, the Company will undertake a comprehensive review of its business plan, as well as near- and longer-term global end market trends. The Company intends to retain a leading advisory firm to assist in this review process.

"Like our fellow shareholders, the Board is not satisfied with the Company's less-than-optimal performance throughout fiscal 2016," said Gingo. "In light of last week's earnings guidance revision, the time has come to conduct a comprehensive review of our business plan and strategic execution."

Gingo continued to say that he is committed to conducting a deliberate and unvarnished assessment as promptly as practical. "Our intent is to provide additional information on our review as appropriate, when appropriate," he said. "We will not, however, speculate on any potential outcomes from this assessment or the timetable for it. The goal is to verify our market intelligence, refine our vision and improve our execution."

The Company expects to release fiscal 2016 fourth-quarter and full-year results, as well as fiscal 2017 earnings guidance, after the market closes on Wednesday, October 26, 2016. The Company will hold its fiscal 2016 fourth-quarter and full-year earnings conference call on Thursday, October 27, 2016 at 10 a.m. Eastern time.

As MRC informed earlier, A. Schulman Inc. announced that it has expanded its existing compounding capacity by adding two new production lines at the Kerpen plant in Germany.
MRC

MOSCOW (MRC) -- As the market leader in hydroprocessing catalysts, Albemarle is reinforcing its business strategy in hydrotreating to become even more focused on technology development and catalyst performance, said Prnnews.

With recent volatility in oil prices, the refining industry's biggest challenge is to optimize profitability of unit operations, maximizing returns. "We believe we are in the best position to optimize our customers' hydroprocessing unit operations. By not being tied to any specific license agreements, our unique STARS portfolio and Nebula bulk catalyst can maximize profitability for refiners," said Silvio Ghyoot, Albemarle's Refining Solutions President.

Nebula is Albemarle's bulk metal catalyst technology, developed jointly by Albemarle and ExxonMobil. Nebula® was commercialized 10 years ago. It is the highest activity hydrotreating catalyst available for many hydroprocessing applications and offers at least twice the activity of traditional catalysts. Today, more than 60 refineries are employing Nebula with over 130 successful unit cycles. In a proprietary STAX combination with STARS catalyst, the Nebula catalyst unleashes performance and boosts profit margins of both hydrocrackers and distillate hydrotreating units around the globe.

Albemarle's successful STARS hydrotreating catalyst product line was recently expanded to three new grades, demonstrating unparalleled performance under the most challenging process conditions: KF 870 STARS for hydrocracking pretreat applications, KF 880 STARS for medium to high pressure middle distillate hydrotreaters, and KF 780 STARS, the newest all around catalyst for low pressure hydrotreating applications.

In order to reinforce this business strategy, Albemarle is ending its alliance with Honeywell UOP that began in 2006. Going forward, Albemarle is committed to working hand-in-hand with our customers to maximize their unit operations, while also completing projects initiated under the Honeywell UOP alliance.

As MRC informed earlier, Albemarle and ICL have entered into an agreement to establish a manufacturing joint venture for the production of ICL's FR-122P polymeric flame retardant and Albemarle's GreenCrest polymeric flame retardant.
MRC