BW LPG sweetens merger offer for US LPG shipping company Dorian

MOSCOW (MRC) -- BW LPG, a Singaporean liquefied petroleum gas shipping (LPG) transportation fleet owner, has upped its all-stock proposal to merge with US LPG shipping company Dorian LPG in a move to engage with the latter following an initial refusal, said Compello.

As per the new proposal, BW LPG said that it will issue 2.12 of its shares for each share in the US LPG shipping company. The previous offer was 2.05 shares of BW LPG in exchange of a Dorian share.

The transaction value, like in the earlier offer made in late May, remains to be USD1.1bn.

BW LPG said that the revised proposal, which has been approved unanimously by the company’s board of directors, represents a value of USD8.67 per share of Dorian common stock. On the other hand, the total equity value of the all-stock deal is nearly USD479m.

BW LPG CEO Martin Ackermann said: “By increasing our offer at this time, we are reaffirming BW LPG’s belief that this transaction will deliver significant value to both companies’ stakeholders and that the time to act is now.

“It is evident from our discussions with Dorian shareholders that there is strong support for the companies to engage immediately regarding our proposed combination and capitalize on this compelling opportunity."

BW LPG revealed that it had made several attempts to get into a dialogue with the management team and advisors of Dorian for more than a month over its proposal, but in vain.

In a letter addressing the board of directors of Dorian, Ackermann, wrote that the Singaporean firm is “surprised and disappointed” by the US LPG shipping company’s refusal to engage with it.
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Chinas ethanol push in doubt as U.S. trade dispute widens

MOSCOW (MRC) - China's ambitious push to use biofuel in cars nationwide by 2020 is in doubt amid concerns about supplies of raw material such as corn, complicated by an escalating trade dispute with Washington, producers and analysts say, as per Hydrocarbonprocessing.

In September last year, the government outlined radical plans to roll out the use of ethanol in gasoline nationally by 2020, in part to digest its huge corn stocks.

State-controlled producers, like China's State Development & Investment Corporation (SDIC), agribusiness COFCO and Jilin Fuel, rushed to draw up plans to invest billions of yuan to double output in the world's largest car market.

But since then, only one major project - SDIC's 300,000 tonnes per year plant in Liaoning province in China's northeast - has received the go-ahead to start construction.

Three big expansion plans by major producers are stalled because the companies haven't got approval from the government, three sources with direct knowledge of the situation say. They declined to be named as they are not authorized to speak to the media.

The government has not revised its timeline or commented publicly on a change in policy.

But executives at two producers, three policy experts and market analysts say the drawn-out approval process and project delays suggest Beijing is quietly rethinking its initial plans.

The slowdown comes as a brewing trade dispute with the United States intensifies, raising the threat of further tariffs that could make imports of U.S. corn or ethanol to meet any shortfall in domestic supplies uneconomic.

"The plan was too ambitious and will have a huge impact on the whole industry chain. It was too big a step forward. There might be change to the policy," said Michael Mao, analyst with Zhuochuang, a consultancy based in Shandong province.

The Commerce Ministry, Ministry of Agriculture and Rural Affairs and the National Development & Reform Commission did not respond to requests for comment.
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Conoco to depose Citgo in hunt for PDVSA Caribbean assets

MOSCOW (MRC) - ConocoPhillips moved to bring Venezuelan PDVSA's U.S. refining unit Citgo Petroleum into its legal battles to enforce a USD2 billion arbitration award against the South American country's nationalization of its Venezuelan assets, as said Hydrocarbonprocessing.

A U.S. district court judge in Houston ruled Conoco can depose Citgo as preparation for a court case against PDVSA and others over alleged asset transfers in the Caribbean that Conoco claims were designed to frustrate its efforts to obtain payment under an International Chamber of Commerce (ICC) award.

Citgo declined to comment, citing a policy regarding ongoing litigation. Conoco is pleased with the court's decision, spokesman Daren Beaudo said in a statement. The company has not received any payment from PDVSA for the award and will continue to pursue the matter, he added.

The decision is another blow to the Venezuelan oil company, which has struggled to pay creditors as its oil production has fallen to the lowest level in more than three decades.

Conoco alleges state-run PDVSA transferred crude and fuels stored at the Isla refinery and Bullenbay Terminal in Curacao to Citgo to prevent it from seizing the oil to enforce the ICC award, according to its filing with a U.S. district in Houston.

The court filing portrays active and often successful efforts by PDVSA and its subsidiary to defeat Conoco's bids to seize oil cargoes and other assets. In one case, it claims PDVSA caused Citgo Petroleum to claim ownership of cargoes off Aruba as a way to lift the company's liens, Conoco said in its June filing.

PDVSA also denied court officers access to some ships docked near Curacao and at least one vessel temporarily disabled its GPS transponder to make a getaway, avoiding seizure, the filing said.

Conoco's assets in Venezuela were expropriated in 2007, after the late President Hugo Chavez nationalized several oil projects by forcing their conversion into joint ventures controlled by PDVSA.

Conoco and Exxon Mobil Corp left Venezuela after they were unable to reach agreements with PDVSA.
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CNPC to sign refining pact with ADNOC this month

MOSCOW (MRC) - China National Petroleum Corp (CNPC) is expected to sign a preliminary agreement with Abu Dhabi National Oil Co (ADNOC) later this month to invest in oil and gas exploration and refinery projects, four sources with knowledge of the matter said, as per Hydrocarbonprocessing.

The agreement will be signed during a high-level Chinese state visit to the United Arab Emirates during which CNPC Chairman Wang Yilin will be on the business delegation.

"It will be a preliminary and broad cooperation deal that covers upstream and downstream investment," said one of the sources, a Beijing-based oil executive briefed on Wang's planned trip.

CNPC International, the state major's overseas investment arm for oil and gas exploration and production, is taking the lead in talks with ADNOC, the executive added.

A CNPC spokesman declined to comment on the deal.

An ADNOC spokesman said the company has received "significant interest" from the market as well as from existing and new partners since it announced its plan to expand its strategic partnership model, but declined to comment on the specific deal.

China will host a high-level China-Arab summit next Tuesday where President Xi Jinping will deliver the keynote speech.
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Linde, Praxair eye merger close this year after European sale

MOSCOW (MRC) - German industrial gases company Linde and peer Praxis are hoping to seal their merger this year, after agreeing to sell Praxair’s European gases business to Japanese rival Taiyo Nippon Sanso Corp, per as Reuters.

Linde and Praxair need to sell assets to get regulatory approval for their USD83 billion all-share merger of equals that will create a global leader in gas distribution, with revenues of almost USD29 billion and 88,000 staff.

"We are taking a constructive approach to address regulatory concerns with the merger in the European Economic Area," Praxair CEO Steve Angel said in a statement on Thursday.

Linde shares rose 4.2 percent after the Taiyo Nippon Sanso deal was announced, and were among top gainers on the DAX index of leading German shares.

Taiyo Nippon Sanso will pay 5 billion euros (USD5.9 billion) for the Praxair European assets, which generated annual sales of approximately 1.3 billion euros in 2017, in a move aimed at boosting its global competitiveness.
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