Syngenta shareholders accept ChemChina USD43 billion takeover offer

MOSCOW (MRC) -- China National Chemical Corp., known as ChemChina, said shareholders of Swiss agribusiness giant Syngenta AG accepted its takeover offer worth about USD43 billion, paving the way for the completion of China's largest-ever foreign acquisition, as per FOXBusiness.

In a press release Friday, ChemChina said based on preliminary numbers, 80.7% of shares were tendered in favor of the acquisition, higher than the minimum acceptance rate of 67% needed for the deal to go through.

ChemChina said the first payment settlement is scheduled for May 18, at which time Syngenta says ChemChina will take over control of the company.

ChemChina said it is moving to delist Syngenta's shares in Switzerland and the U.S. "as soon as permitted by law and applicable regulations."

As MRC informed before, in mid-April 2017, ChemChina and Syngenta announced that they had received approval from the Ministry of Commerce of the People’s Republic of China for the proposed acquisition of Syngenta by ChemChina - at USD43 billion, it's the largest foreign acquisition by a Chinese company. A bit earlier, the U.S. and European Union competition authorities gave conditional approval of the deal.

ChemChina produces special chemical materials, basic chemicals, oil refining, agricultural chemistry, rubber products, and chemical equipment.
MRC

Borealis Q1 net income up 22.7% y/y to USD336 million


МОSCOW (MRC) -- Borealis’ net profit increased 22.7% year-on-year (y/y) to EUR313 million (USD336 million as on 31 March 2017) in the first quarter ended 31 March 2017, according to a company press release.

The strong result was driven by continuing high margins in the polyolefins business and by an improved contribution from Borouge. The contribution from Base Chemicals was lower compared to the first quarter of 2016, as a result of a more difficult fertilizer market environment.

Net debt increased by EUR 619 million in the first quarter, largely due to the payment of a EUR 750 million dividend to Borealis' shareholders. Despite the increase in net debt, Borealis' financial position remains strong, with a gearing of 21% at the end of the first quarter 2017.

"Borealis continues to benefit from the strong polyolefins industry margin supporting the polyolefins business profit contribution", comments Mark Garrett, Borealis Chief Executive. "The Borouge result in the first quarter was firm but was impacted by the limited availability of feedstock. All in all our excellent financial performance has also allowed us to return cash to our shareholders, via a EUR 750 million dividend, probably a record in Austrian industrial history."

"In the second quarter, Borealis expects another solid result. The fertilizer market conditions are improving and we expect the polyolefins business and Borouge to continue to perform well. The main challenge going forward this year will be the successful execution of a record number of planned turnarounds, involving multiple locations."

Borealis is a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers. With its Head Office in Vienna, Austria, the company currently has around 6,600 employees and operates in over 120 countries. Borealis generated EUR 7.2 billion in sales revenue and a net profit of EUR 1,107 million in 2016.

MRC

Indian top refiner in early talks with Aramco for downstream project

MOSCOW (MRC) -- India's top refiner said it is in initial talks with Saudi Aramco on downstream investments, including a mega project on its west coast, that could help the OPEC member lock-in customers amid an oil supply glut, said Reuters.

Oil producers are targetting growing demand in Asia to boost market share after rising US shale oil output has displaced some of their supplies.

India, the world's third biggest oil consumer, plans to build a 1.2-MMbpd refinery to petrochemical project in the country's west coast to feed its growing fuel demand.

The International Energy Agency estimates India's refining capacity, the fourth biggest in the world, would lag local fuel demand going forward, requiring investment in more plants. "They are interested in projects and we have just started (talks)...It's very, very preliminary discussions." B. Ashok, chairman of Indian Oil Corp told reporters when asked if his firm is in talks with Aramco on the west coast project.

Saudi Arabia's Energy Minister Khalid al-Falih earlier said that Aramco continues to explore a variety of promising collaboration opportunities across the ASEAN region and elsewhere in Asia, with India being a prime target.

Saudi Aramco is beefing up its overseas portfolio by investing in refineries in major markets to secure an outlet for its crude oil ahead of its initial public offering next year. IOC plans to invest about USD30 B in five years with the bulk of that meant for fuel upgradation projects and petrochemicals, Ashok told reporters on the sidelines of the Asian Oil and Gas conference.

India plans a nation-wide use of Euro VI compliant fuels from April 2020. IOC and its partners are expected to make a final investment decision on the west coast project in end-2018 to early 2019. The project, which includes a 3 MMtpy ethylene unit, would then take five years to complete, he said.

IOC aims to complete a 5 MMtpy liquefied natural gas terminal at Ennore in the east coast in the third quarter of 2018, Ashok said. Indian refiners are raising the share of spot crude in their overall crude intake to benefit from changing market dynamics and quickly capture cheap distress and arbitrage barrels.

Ashok said this year IOC will buy 68% of its oil needs from term suppliers, down from 80% earlier.
MRC

Iraq calls for bids for new oil refinery in Basra

MOSCOW (MRC) -- Iraqi's oil ministry last Thursday asked foreign companies and investors to bid for a project to build and operate a 300,000-bpd export-oriented refinery in Fao, near the southern city of Basra, reported Reuters.

Bidding documents provide for two investment models—build-own-operate and build-operate-transfer, said the ministry in a statement.

They will be available until May 31 and the bidding will close on Aug. 1, it said.

OPEC's second-largest oil producer after Saudi Arabia, Iraq's refining capacity was curtailed when Islamic State overran its largest oil processing plant in Baiji, north of Baghdad, in 2014.

Iraqi forces recaptured it in 2015 but it sustained heavy damage in the fighting.

The country now relies on the Doura refinery in Baghdad and the Shuaiba in Basra.

As MRC informed previously, Iraq's oil ministry said on Thursday it had started loading a tanker with 2 MMbbl of crude oil bound for Egypt, marking the first shipment under a bilateral agreement. Under a one-year agreement reached last month between Iraq and Egypt, Iraq will sell 12 MMbbl of oil to Egypt, the ministry said.
MRC

Amec Foster Wheeler signs extension to BP master service agreement

MOSCOW (MRC) -- Amec Foster Wheeler’s completions and commissioning company, qedi, has signed an extension of its global Master Service Agreement with BP, which it has successfully delivered since 2012, as per Hydrocarbonprocessing.

The new contract with BP will run for two years through December 2019. qedi will continue with the exclusive provision of completions and commissioning support services to BP on a global basis. The agreement also includes all licenses and support for qedi’s GoTechnology products, as well as completions and commissioning manpower services.

This completions and commissioning support service includes the management and delivery of projects from mechanical completion and pre-commissioning through to handover.

"qedi has been providing completions and commissioning support services to BP for over 15 years," Barry Cann, qedi Managing Director said. "We’re delighted to be awarded an extension with BP, which is a vote of confidence in our relationship with the company, the value we add, our unrivalled capabilities and our skilled team. We look forward to continue working with BP on their projects around the world."

As MRC wrote earlier, in March 2017, Amec Foster Wheeler announced the award of a five-year global Enterprise Framework Agreement (EFA) with Shell Global Solutions International, B.V. to provide engineering, procurement and construction management (EPCM) services for its downstream projects worldwide.

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.
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