Chemours awards Jacobs long-term field services contract

MOSCOW (MRC) -- Jacobs Engineering Group Inc. received a five-year field services contract from The Chemours Company FC LLC for its Washington Works Facility in West Virginia, said Hydrocarbonprocessing.

The Washington Works Facility is Chemours’ largest production facility, producing fluoroproducts for construction, semiconductor, automotive, aerospace and household goods industries. This is the eighth field services win in two months as Jacobs.

Jacobs will provide small capital construction, ongoing maintenance and turnaround development for the entire Chemours facility. The staff and trades professionals executing the contract will join a team of engineers and planners supporting the Chemours facility from Jacobs’ Charleston, West Virginia office.

"We have a long and extensive history delivering maintenance services across North America and the UK," said Jacobs Global Field Services Senior Vice President Valerie Roberts. "This contract builds on the trust Chemours has in our engineering teams and reputation in maintenance services. It brings us one step closer to providing end-to-end solutions support – creating the best possible value for this facility and Chemours."

As MRC informed earlier, DuPont and Chemours will each pay USD335.35 million in cash in personal injury claims to settle 3,550 lawsuits related to perfluorooctanoic acid (PFOA) environmental releases from the Washington Works plant in West Virginia.
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Aramco Malaysia deal gives Saudi upper hand in fight for Asia oil share

MOSCOW (MRC) -- Top global oil exporter Saudi Arabia broke from the pack in the race to lock up Asian market share after agreeing on Tuesday to pump USD7 billion into a refinery-petrochemical complex in Malaysia, Reuters said.

State oil giant Saudi Aramco's investment into Malaysia's RAPID project will secure an outlet for its crude oil for at least two decades and beefs up its downstream portfolio ahead of its initial public offering (IPO) next year.

The competition in Asia among producers, including Russia and other Middle Eastern suppliers such as Iraq, Kuwait and Iran, is sharp. Asia's growing oil demand provides the only home for the producers' output, especially as they have lost market share in the United States to rising domestic shale oil production.

Buying a share of a large oil refinery with a promise to provide crude is a time-tested producer tactic for locking up customers. Russia, the world's largest oil producer, has bought a major stake in India's Essar refinery and plans to build one in Indonesia with state-owned Pertamina.

"The investment is wise as it ensures Saudi can increase its market share in Asia, at a time when rising US shale oil is displacing Saudi oil from the US market," Gordon Kwan, Nomura's head of Asia oil and gas research said.

"Being a shareholder of a refinery will give Aramco the upper hand when competing with other OPEC countries such as Iran and Iraq, all targeting more oil sales into Asia."

Under the deal with Malaysia's Petroliam Nasional Bhd (Petronas), Aramco will supply up to 70% of the crude for RAPID, which will consist of a 300,000 bpd oil refinery and petrochemical plants.

Aramco has also strengthened its ties with Indonesia, Southeast Asia's largest economy, providing 270,000 bpd of crude to the Cilacap refinery owned by Pertamina after taking a 45% stake.

The deal "will provide Aramco and the Kingdom a sustainable demand for the Saudi crude and will allow the companies to add value to that crude by making high quality products, fuels or petrochemicals for the Malaysian and neighbouring markets," Saudi Energy Minister Khalid al-Falih told Saudi state television.

Saudi Arabia exported an average of 6.96 MMbpd in 2016 to the top six oil buyers in Asia, including China, India, Japan, South Korea, Taiwan and Singapore, out of total imports of 31 MMbpd, according to Thomson Reuters Eikon data.

The Malaysian deal should bolster Aramco's IPO, which Saudi officials have predicted will value the company at a minimum of USD2 trillion through the sale of 5% stake.

"It's a sound deal and looks good for the IPO. Saudi Aramco is paying 25% of the project's costs and securing the right to supply 50% of its feedstock," industry veteran John Driscoll, director of Singapore-based consultancy JTD Energy said.

Saudi Aramco also has refinery ventures in South Korea, Japan, and China. It also invests Saudi Arabia with ExxonMobil, Total and Sinopec.

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PPG completes expansion at China coatings plant

MOSCOW (MRC) -- PPG marked the completion of a new USD19 million high-performance waterborne and high-solids coatings production line at its Wuhu facility in Anhui province, China, said the company on its site.

The new line enhances the production and service capabilities of PPG’s automotive coatings business for customers in China.

With the implementation in China of stricter environmental regulations, automakers have increased the use of low-volatile organic compound (low-VOC) coatings. The new line at PPG’s Wuhu plant adds production for environmentally-friendly waterborne coatings to meet this need as well as the growing overall demand by automotive manufacturers and parts makers across China. The new topcoat manufacturing facility adds process advancements and a higher degree of automation. In addition, storage tanks added to the facility help reduce waste at the Wuhu plant.

"PPG’s high-performance waterborne and high-solids automotive coatings enable our customers in China to meet environmental requirements while improving the quality of their vehicles," said Vincent Robin, PPG vice president, automotive coatings, Asia Pacific.

"With this added manufacturing capability in Wuhu, we significantly enhance our ability to serve our automotive customers across China."

PPG established its Wuhu plant in 2008, to grow its manufacturing footprint in China and supply automakers across the country.

As MRC informed earlier, PPG announced that it has reached an agreement with the Emerging Europe Accession Fund (EEAF) to acquire DEUTEK S.A., a leading Romanian paint and architectural coatings manufacturer.

PPG Industries, Inc. (PPG) is a global supplier of protective and decorative coatings. Performance Coatings, Industrial Coatings and Architectural Coatings- EMEA segments supply protective and decorative finishes for customers in a range of end use markets, including industrial equipment, appliances and packaging; factory-finished aluminum extrusions and steel and aluminum. Founded in 1883, PPG has global headquarters in Pittsburgh and operates in nearly 70 countries around the world. Reported net sales in 2014 were USD15.4 billion.
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Cristal and Tronox sign transaction agreement

MOSCOW (MRC) -- Saudi Arabia's National Industrialization Co. (Tasnee) has announced that its subsidiary, National Titanium Dioxide Company (Cristal) has signed a definitive agreement for the acquisition of its titanium dioxide (TiO2) business, by Tronox Limited in return for USD1.67 billion and a 24% stake in the new entit, as per Cristal's press release.

The transaction will create the largest TiO2 company in the world, based on titanium chemical sales and nameplate capacity. Upon closing of the deal, which is subject to governmental and regulatory clearances, current Tronox Limited shareholders will own 76% and Cristal shareholders will own 24% of the combined entity.

Tasnee CEO Mutlaq Al-Morished commented, "This transaction enables Cristal and Tronox to position the combined businesses for long-term success in the titanium dioxide (TiO2) industry. This also allows Tasnee to focus on its petrochemical assets, downstream business and other strategic business development opportunities, while substantially deleveraging its balance sheet."

"This agreement will create the most diverse manufacturing platform of any titanium dioxide company. The resulting global network and synergies arising from consolidation of businesses will allow us to better meet customer needs worldwide and provide a more sustainable business. The success of the new company will come from its people, and I have no doubt that they will take the knowledge, skill, commitment and passion that they have shown in the past to help in building a new world-class company," said Dr. Talal Al-Shair, Vice Chairman, Tasnee and Chairman of Cristal.

"The combination of the TiO2 businesses of Tronox and Cristal will create a global leader with a wide range of products that our customers value and a cost structure that will allow us to deliver those products at the best price globally. This transaction will bring significant value to our shareholders, our customers, suppliers, and our employees. Over the next several months we will be working with the relevant agencies to receive all regulatory approvals that are required and working together on a global integration plan, ensuring that when the deal closes, we are prepared to operate efficiently as one unified company," said Tronox Chairman and CEO Tom Casey.

As MRC informed earlier, Cristal has announced that effective March 01, 2017, or as contracts allow, prices on all TiONA and TiKON titanium dioxide (TiO2) products will increase in the global markets. These increases are in addition to previously announced price increases. Thus, in Eastern and Western Europe, including Turkey: Prices for all TiONA and TiKON TiO2 products will increase by EUR225 per metric ton and in Russia and CIS region by USD225 per metric ton; in North America - prices for all TiONA and TiKON TiO2 products will increase by USD0.07/lb; in Latin America - prices for all TiONA and TiKON TiO2 products will increase by USUSD225 per metric ton; in the Middle East and Africa - prices for all TiONA and TiKON TiO2 products will increase by USD225 per metric ton and EUR225 per metric ton in Euro priced markets; in Asia Pacific - prices for all TiONA and TiKON TiO2 products will increase by USD200 per metric ton.

Tronox Limited operates three TiO2 pigment plants in the USA, Netherlands and Australia; it operates mines in South Africa and Australia; it has a research and development center in the USA; and it has an electrolyte and specialty chemicals division in the USA. Tronox has approximately 3,400 employees worldwide.

Cristal is one of the largest producers of titanium dioxide and a leading producer of titanium chemicals. Cristal is the world’s leading supplier of ultrafine titanium dioxide products and titanium chemicals and is a fast-growing producer of mineral sands and titanium metal powder. Cristal operates eight manufacturing plants in seven countries on five continents and employs nearly 3,400 people worldwide. Cristal is owned 79% by Tasnee, a listed Saudi joint stock company and 20% by Gulf Investment Corporation, a company equally owned by the six states of the Gulf Cooperation Council and headquartered in Kuwait.
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Eni posts Q4 profitt falls 41.9%

MOSCOW (MRC) -- Eni reported an adjusted net profit of 459 million euros (USD484 million) for the fourth quarter as compared to an adjusted net loss of 301 million euros in the same period a year ago, said the producer on its site.

This is the Italian company’s first quarterly profit in the last 18 months. In the quarter under review, Eni generated 3.2 billion euros in cash, up from 1.3 billion in the previous quarter.

"The 2016 results mark the successful conclusion of a radical transformation process," Eni’s Chief Executive Claudio Descalzi said.

"Over the past three years, Eni has restructured to withstand one of the most complex environments in the history of the oil industry, while strengthening its growth prospects and preserving a robust balance sheet," Descalzi added.

Descalzi said that the company plans to propose at the next annual general meeting the distribution of a cash dividend of EUR0.8 per share in 2016.

"Looking to the future, we are able to reaffirm our progressive remuneration policy, in line with the expected improvement of commodity prices and our own financial performance," he concluded.

As it was reported earlier, in the same period last year Eni posted an adjusted net loss of 301 million euros.

Eni is an Italian multinational oil and gas company headquartered in Rome. It has operations in in 79 countries, and is currently Italy's largest industrial company with a market capitalization of EUR68 billion (USD 90 billion), as of August 14, 2013. The Italian government owns a 30.3% golden share in the company, 3.93% held through the state Treasury and 26.37% held through the Cassa depositi e prestiti. Another 39.40% of the shares are held by BNP Paribas.

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