OMV and Gazprom signed planned asset swap

MOSCOW (MRC) -- OMV and Gazprom have signed a "Basic Sale Agreement" which foresees a potential acquisition of a 24.98% interest in the Achimov IV and V phase development in the Urengoy gas and condensate field by OMV for a purchase price to be negotiated in good faith, said OMV.

The “Basic Sale Agreement” replaces the “Basic Agreement” concluded between OMV and Gazprom on December 14, 2016 which provided for a potential asset swap of the aforementioned interest against a 38.5% participation of Gazprom in OMV (NORGE) AS.

The execution and implementation of the potential transaction is, amongst others, subject to agreement with Gazprom on the final transaction documents and regulatory and corporate approvals at a later stage. The signing of the final transaction documents is expected in the beginning of the year 2019.

OMV is producing and marketing oil and gas, innovative energy and high-end petrochemical solutions – in a responsible way. With Group sales of EUR 20 bn and a workforce of around 20,700 employees in 2017, OMV Aktiengesellschaft is one of Austria’s largest listed industrial companies. In Upstream, OMV has a strong base in Romania and Austria and a balanced international portfolio, with the North Sea, the Middle East & Africa and Russia as further core regions. 2017 daily production stood at approximately 348,000 boe/d. In Downstream, OMV operates three refineries with a total annual processing capacity of 17.8 mn tons and more than 2,000 filling stations in ten countries as of year-end 2017. OMV runs gas storage facilities in Austria as well as in Germany; its subsidiary Gas Connect Austria GmbH operates a gas pipeline network in Austria. In 2017, gas sales volumes amounted to 113 TWh.
MRC

MOSCOW (MRC) -- SNC-Lavalin has announced that it has signed a project management contract (PMC) with Long Son Petrochemicals Company Limited (LSP), a subsidiary of the Siam Cement Public Company Limited (SCG) of Thailand, according to Hydrocarbonprocessing.

Under the agreement, SNC-Lavalin and LSP will form an integrated team of dedicated personnel to manage a variety of contractors on site, as part of a comprehensive project management structure. Under this structure, the team will provide oversight and various professional services, including interface and document management, design verification, safety management and risk assessment, engineering services and other studies.

"We look forward to building a long-term relationship with LSP and SCG, by supporting their expansion plans in Vietnam," said Christian Brown, President, Oil & Gas, SNC-Lavalin. "This project will leverage SNC-Lavalin’s project management and technical skills, as well as further strengthen our PMC reputation in petrochemicals and position us for future opportunities in Vietnam and globally."

LSP is planning to develop, construct and operate the first integrated petrochemicals complex in Vietnam. Located on Long Son Island in Vung Tau City, Ba Ria - Vung Tau Province, southeast of Ho Chi Minh City, the USD5.4 billion complex will consist of an olefins cracker, high density polyethylene (HDPE), linear low density polyethylene (LLDPE) and polypropylene (PP) units, tank farm, central utility facilities, port and jetty. Once completed it will have olefins production capacity of 1.6 million tons per year.

As MRC reported earlier, in March 2018, SNC-Lavalin (SNC) in consortium with TechnipFMC was awarded a lump sum EPC contract to supply Nova Chemicals with two gas cracking furnaces. This award supports the recently announced third phase of the conversion and expansion of Nova Chemicals’ Corunna cracker. The cracker which is expected to increase the unit’s current ethylene capacity by more than 50 percent and is linked to the construction of a new polyethylene facility being developed by Nova Chemicals.
MRC

MOSCOW (MRC) -- Pakistan wants to build an oil refinery near the deep-water port of Gwadar to reduce petroleum product imports, reported Reuters with reference to a planning official's statement, as the government hosted a Saudi delegation reported to be considering funding the project.

Pakistan is also during the Saudi visit expected to seek financial assistance from its oil-rich ally to avoid another bailout by the International Monetary Fund amid a foreign currency crisis fueled by a widening current accounts deficit.

The government of new Prime Minister Imran Khan wants to turn the Chinese-funded Gwadar port into "an oil city" to reduce dependence on imported refined fuel, Khusro Bakhtyar, minister for planning, development and reforms, told reporters.

The Saudis were reported by Pakistani newspapers Dawn and The News to be considering investing in what local media say would be a multi-billion-dollar refinery project.

Bakhtyar mentioned neither the projected cost nor any confirmed Saudi investment.

Last month, Pakistan invited Saudi Arabia to invest in projects related to the China-funded Belt and Road infrastructure corridor, of which the Gwadar port is the crown jewel of some USD60 billion in projects in Pakistan.

"An oil city concept has been developed for Gwadar," Bakhtyar said, saying the country can reduce its USD16 billion petroleum import bill if it imports cheaper crude oil to refine instead of more expensive finished products.

"If we set up a refinery and complete Pakistan’s requirement through our refinery this oil import bill can be cut by half. And God willing, we will do this."

Khan made Riyadh his first foreign trip since he swept to power in elections in July, but there was no confirmation that the Saudi government might offer an economic lifeline.

Pakistan has seen foreign reserves dwindle to about USD9 billion, barely enough to meet its external debt through the end of the year, and the rupee has lost more than 20 percent of its value since December.

Local media have reported that Islamabad is hoping for a deferred-payments deal for Saudi oil to help shore up foreign reserves and possibly even a bridge loan of around $2 billion, but officials on both sides have not commented on any requests.

As MRC informed previously, in August 2017, Wak Group and Guangdong Electrical Design Institute (Gedi) signed an engineering, procurement and construction (EPC) agreement to engineer, design and construct a Falcon Oil refinery at KP Pakistan. The deep conversion oil refinery has a capacity of producing up to 100,000 bpd. The total contract value amounts to approximately USD3.58 B. The project is expected to be completed in 30 months after commencement of work.
MRC

MOSCOW (MRC) -- LyondellBasell, one of the largest plastics, chemicals and refining companies in the world, has announced that its wholly owned subsidiary, A. Schulman, Inc., has declared a quarterly dividend of USD15.00 per share for A. Schulman's convertible special stock, as per LyondellBasell's press release.

The dividend is payable on November 1, 2018 to shareholders of record as of October 15, 2018.

LyondellBasell acquired A. Schulman on August 21, 2018.

A. Schulman, Inc. is a leading international supplier of high-performance plastic compounds, composites and resins headquartered in Akron, Ohio. Since 1928, the company has been providing innovative solutions to meet its customers' demanding requirements. The company's customers span a wide range of markets such as packaging, mobility, building & construction, electronics & electrical, agriculture, personal care & hygiene, sports, leisure & home, custom services and others. The company employs approximately 5,200 people and has 54 manufacturing facilities globally. A. Schulman reported net sales of approximately USD2.5 billion for the fiscal year ended August 31, 2017.

LyondellBasell is one of the world's largest plastics, chemical and refining companies and a member of the S&P 500. LyondellBasell manufactures products at 55 sites in 17 countries. LyondellBasell is also a leading licensor of polypropylene and polyethylene technologies. The more than 250 polyolefin process licenses granted by LyondellBasell are twice that of any other polyolefin technology licensor.
MRC

MOSCOW (MRC) -- Dutch paintmaker Akzo Nobel would return 5.5 billion euros (USD6.4 billion) to shareholders after the sale of its specialty chemicals division closed this week, fulfilling a promise made in March to give shareholders a large majority of the proceeds, as per Reuters.

The company said it would buy back 2.5 billion euros of shares and distribute 1 billion euros in a special dividend. In addition, it will distribute 1 billion euros in paid-in capital.

Akzo sold its chemicals division for 10.1 billion euros to Carlyle Group (CG.O) in March, generating net proceeds of 7.5 billion euros. Akzo previously paid shareholders an extra dividend of 1 billion euros late last year.

Akzo decided to sell its chemicals division early last year, as it fended off a 26-billion-euro takeover offer by U.S. rival PPG Industries (PPG.N).

The refusal to talk to PPG led to a bitter fight with a large group of shareholders who went to court in an unsuccessful bid to oust chairman Antony Burgmans.

The capital distribution announced by Akzo on Tuesday is noteworthy because such payments are not subject to a 15 percent withholding tax on dividends in the Netherlands. The dividend tax only affects foreign shareholders and is set to be eliminated.

Akzo said the share buyback is expected to be completed by mid 2020.

Akzo Nobel N.V., trading as AkzoNobel, is a Dutch multinational, active in the fields of decorative paints, performance coatings and specialty chemicals. Headquartered in Amsterdam, the company has activities in more than 80 countries, and employs approximately 55,000 people.
MRC