Petrofac and SOCAR form joint venture

MOSCOW (MRC) -- Petrofac’s Training Services business and the State Oil Company of the Republic of Azerbaijan (SOCAR) has signed a Shareholders Agreement to form a Joint Venture for the pursuit of training opportunities across the country’s oil & gas and petrochemical industries, as per Petrofac's press release.

Under the Agreement, SOCAR’s stake in the Joint Venture has been determined at 51% and Petrofac’s at 49%. The Shareholders Agreement was signed by SOCAR’s President, Rovnag Abdullayev, and Petrofac’s Global Head of Training Services, Engineering and Production Services, Karim Osseiran.

The Joint Venture will provide tested, contemporary training and educational services for the workers of Azerbaijan’s energy sector and those engaged in energy projects in other countries.

In recent years, SOCAR’s Training, Educational and Certification Department has organised training in accordance with standards of world renowned organisations, such as OPITO and IOSH. In addition to installation of high quality equipment necessary for carrying out this training, the range of skills development offered by SOCAR has increased.

Petrofac brings its extensive experience of designing, building and operating unique training facilities which combine immersive technical training techniques and digital technology. In order to improve the links between academic education and production, the company will also provide capability to develop and assure competence across the HSSE, engineering, construction, operations, maintenance and drilling disciplines.

SOCAR is focused on driving nationalisation initiatives and its experience of establishing and operating energy-related facilities, including training centres, will be fully utilised within the Joint Venture. SOCAR will realise its competitive advantage by having the opportunity to provide training and certification services to personnel of foreign companies, thus utilising the commercial potential of training centres at its disposal.

Karim Osseiran, Global Head of Training Services, Petrofac Engineering and Production Services, speaking at the signing ceremony said: "We are delighted SOCAR has chosen to partner with us. Through our Joint Venture we are combining our industry credentials, local knowledge and depth of capabilities. This will enable us to deliver a step-change in workforce training and competence assurance in support of SOCAR’s nationalisation agenda."

Speaking at the ceremony, SOCAR’s Vice President Khalik Mammadov stated: "This is the next step in transforming oil capital into human capital. We believe establishing a partnership with Petrofac, renowned for the provision of training and development services globally, will be successful for SOCAR and of benefit to the oil and gas industry in Azerbaijan. SOCAR Petrofac will foster a sustainable approach to meeting the demand of the technical workforce in Azerbaijan and the wider region, through supporting local content and nationalisation goals."

As MRC wrote before, in March 2017, SOCAR GPC, a gas-processing project of the State Oil Company of Azerbaijan Republic (SOCAR), selected UNIPOL PE Technology licensed by Univation Technologies for use in its world-scale 600KTA polyethylene plant to be built in Garadagh, Azerbaijan.
MRC

TechnipFMC and partners bag USD4.2bn contract for Sitra Refinery expansion

MOSCOW (MRC) -- A joint venture comprising TechnipFMC, Samsung Engineering and Tecnicas Reunidas has bagged a USD4.2bn worth contract from Bahrain Petroleum Company (Bapco) for the expansion and modernization of the Sitra Refinery in Bahrain, said Refiningandpetrochemicals.

Located on Bahrain’s Eastern coast, on the island of Sitra, the crude oil refinery has a current capacity of 267,000 barrels per day (BPD). Through the expansion program, the Sitra oil refinery’s capacity is expected to move up to 360,000BPD.

Apart from the increased capacity, the expansion of the refinery will be carried out to improve energy efficiency, valorization of the heavy part of the crude oil barrel and enhance the products slate. The expansion and modernization of the refinery will be implemented on engineering, procurement, construction and commissioning (EPCC) lump sum turnkey basis and is scheduled to be completed in 2022.

TechnipFMC Onshore Offshore business president Nello Uccelletti said: "We are honored to be the leader of this joint venture entrusted for the execution of this prestigious contract that represent a testimonial of the long-term partnership with Bapco and strengthen our leadership in the refining sector.

"This award is one of the strategic "early engagement" achievement, following the successful completion by TechnipFMC of the FEED contract."

Tecnicas Reunidas, on its part, will carry out detail engineering of complex units of the refinery like the crude unit, hydrocracker, vacuum unit, saturated gas plants 1&2, and other auxiliary facilities. The Spain-based general contractor, which will also take part in the procurement and construction activities for the project, will get USD1.35bn as part of its share.

Tecnicas Reunidas stated: "The investment in refineries upgrade is an ongoing trend in the refining industry, as enhancing profitability is key for maintaining the competitiveness of existing facilities. "Tecnicas Reunidas’ strong execution capabilities in this type of strategic investments, like the one of BMP, are crucial for the development of the oil and gas industry and adds this project to its extended track-record on refining."
MRC

Wacker further expands its production and R&D capacities in China

MOSCOW (MRC) -- Wacker Chemie AG will expand its production capacities for silicone and polymer products in China and continue to reinforce its research and development capability in order to further strengthen its market position in the region, as per the Munich-based chemical company's statement.

Specifically, the company is expanding its solid silicone rubber manufacturing facility in Zhangjiagang as well as its production capacity for vinyl acetate-ethylene (EVA) copolymer dispersions at its plant in Nanjing. Wacker’s technical center in Shanghai will also be expanded. This includes new R&D labs for silicone fluids and resins, pyrogenic silica and room-temperature-curing silicone elastomers. A food application lab for products from the WACKER BIOSOLUTIONS division is also scheduled. A total investment of EUR20 million has been earmarked for these expansion projects.

Wacker’s plant for vinyl acetate-ethylene (EVA) copolymer dispersions in Nanjing, China. Capacity expansion measures are planned there, as well as at the Group’s silicone site in Zhangjiagang.

Most of the funds will be used for technical measures to eliminate production bottlenecks and to expand capacity. One investment focus is on the Zhangjiagang site, where WACKER manufactures pyrogenic silica and several silicone products, including solid silicone rubber. By building a new production line, the company will be able to add several thousand metric tons of solid silicone rubber capacity in the future. At the Nanjing polymer site, process-engineering improvements for the manufacture of VAE dispersions will boost the annual production capacity by up to 30,000 metric tons. The announced expansion and debottlenecking measures are expected to be completed in the second half of 2018.

"Greater China is one of our most important business regions. With annual sales of well over one billion Euro, it is WACKER’s largest single market and stands for one fourth of Group sales", said CEO Rudolf Staudigl, speaking to customers in Shanghai. The demand for silicones and polymer products in China has been growing steadily for years. However, due to high plant capacity utilization, additional volumes are almost impossible. "That is why we are now expanding capacities at our Chinese sites in Zhangjiagang and Nanjing. This will help us support our customers’ growth and strengthen our market position in the region long term", said Staudigl.

Paul Lindblad, President of Wacker Greater China, also announced an expansion of the company’s R&D facilities in Shanghai. WACKER already operates a technical center there. By year-end 2018, Shanghai will have additional silicone labs for the development of new products and applications in areas such as coatings, construction, and consumer care. The expansion project also includes the R&D lab for room-temperature-curing silicone elastomers which develops adhesives and sealants for construction and industrial applications. A new application lab catering to the growing needs of the local food industry will also be built.

"In recent years, Wacker has further strengthened its R&D cooperation with Chinese customers to develop sustainable products and solutions suitable for the Chinese market," said Lindblad. Earlier this year, Wacker had already doubled its local synthesis capacity for polymer dispersions needed for research and development. "The expansion of our R&D facilities will boost our innovation capability in the region", Lindblad emphasized. "Accordingly, our R&D staff will continue to grow by a double-digit percentage in the next few years."

As MRC informed previously, Wacker Chemie AG is expanding its existing production plants for dispersions and dispersible polymer powders in South Korea. The Group is building a new spray dryer for dispersible polymer powders at its Ulsan site, which will have a total capacity of 80,000 metric tons per year. The Munich-based chemicals company is also constructing an additional reactor for dispersions based on EVA, which are needed as the raw material for the spray dryer to produce dispersible polymer powders.

Wacker Chemie AG is a worldwide operating company in the chemical business, founded 1914. The company is controlled by the Wacker-family holding more than 50 percent of the shares. The corporation is operating more than 25 production sites in Europe, Asia, and the Americas. The product range includes silicone rubbers, polymer products like ethylene vinyl acetate redispersible polymer powder, chemical materials, polysilicon and wafers for semiconductor industry.
MRC

BP ‍to build third lubricants blending plant in China​

MOSCOW (MRC) — BP said on Wednesday it plans to build its third plant for blending lubricants in China for about USD227 MM as it looks to meet the country’s rapidly growing demand, as per Reuters.

BP’s China president Xiaoping Yang said the country was a key growth market for premium lubricants. The new plant, which will have an annual production capacity of 200,000 t, is expected to start operation before the end of 2021.

BP said the plant will be able to produce premium lubricants and greases for automobiles, industrial, marine, and aviation customers, as well as special lubricants and additives.
MRC

U.S. challenges Tronox plan to buy Cristal's titanium dioxide business

MOSCOW (MRC) -- The U.S. government has filed a complaint aimed at stopping chemical maker Tronox Ltd from purchasing Cristal’s titanium dioxide business, the Federal Trade Commission said, said Reuters.

The companies are two of the three top suppliers of chloride process titanium dioxide, used to make paint, plastic, paper and other products, the FTC said. The third is the Chemours Company.

Tronox did not immediately respond to a request for comment. The company valued the deal at USD1.673 billion when it was announced in February.

The FTC has filed a complaint with its own internal agency judge and has requested a temporary restraining order and preliminary injunction in Washington, DC to prevent the deal from going forward.

Cristal’s U.S. agent is Cristal USA, while its parent companies are Saudi Arabia-based National Industrialization Company 2060.SE and National Titanium Dioxide Company Limited, the FTC said.
MRC