ADNOC signs long-term agreement for base oil sales into India

MOSCOW (MRC) -- The Abu Dhabi National Oil Company (ADNOC) announced, that it has signed another significant long-term sales agreement with an important end-user consumer - the Indian Oil Corporation (IndianOil) - for its high-quality base oil, ADbase, according to Hydrocarbonprocessing.

Ahmad Bin Thalith, Acting Senior Vice President of Refined Products Sales, in ADNOC’s Marketing, Supply and Trading directorate, said: "The signing of this important sales agreement, with another major base oil consumer in a large and growing market, is testament to the quality and reliability of ADNOC’s Group III base oil, ADbase. We look forward to working with IndianOil and to increase the supply of ADbase to the Indian market, which continues to see strong demand for high quality base oil and finished lubricants."

IndianOil is one of the world’s largest companies, ranked 137 on the Fortune 500 list. It is the largest seller of finished lubricants in the Indian market with an approximate volume of 450,000 tons per annum. The total Indian market for finished lubricants is 2 million tons and is growing at the rate of 2.4% per annum. IndianOil will use the ADbase oils to manufacture high end engine oils for India’s growing automotive sector.

"IndianOil is a long-standing partner of ADNOC and we look forward to building on and strengthening the links between our two companies. The high quality of ADNOC’s ADbase product, combined with strong logistics support and the proximity of the UAE to India, was key in our decision to sign this agreement," Subimal Mondal, Executive Director (Lubes) at IndianOil said.

The signing of this agreement follows a recent signing with Xiamen Sinolook Oil Company to supply ADbase into China, and the 2017 and 2018 exclusive agreements with Penthol C.V., and Chemlube for the supply of ADbase into the United States of America and Europe.

ADNOC Refining, an ADNOC subsidiary, produces up to 500,000 metric tonnes per year of Group III base oil and around 100,000 metric tonnes per year of Group II base oil, at its Ruwais refinery. Murban, Abu Dhabi’s light, high paraffinic crude is used as feedstock for ADNOC’s Base Oil plant, which ensures a consistent, high quality product.

ADbase has a high Viscosity Index (VI) making it an ideal lubricant component, ensuring efficiency and fuel economy for high performance engines, while meeting ever stringent environmental regulations.

ADNOC has already completed API SN approval, GM Dexos 1, ILSAC GF-5, and 0w-20 for full synthetic motor oils, and is actively working with additive companies to achieve Original Equipment Manufacturers (OEM) and European Automobile Manufacturers Association (ACEA) formulation approvals.

As MRC reported earlier, in May 2018, ADNOC unveiled plans to invest AED 165 billion (USD45 billion) alongside partners, over the next five years, to become a leading global downstream player, enabling it to further stretch the value of every barrel it produces to the benefit of ADNOC, its partners and the UAE.

ADNOC is now accelerating this transformation by unveiling its plans to become a leading global downstream player. The new strategy will be supported by ADNOC’s 45 year plus legacy of a unique and open approach to partnerships, built on the UAE’s bedrock values, reliability and attractiveness. ADNOC will again look to create long term downstream partnerships, providing access to the most attractive parts of the energy value chain, to redefine ADNOC’s future growth.
MRC

MOSCOW (MRC) -- Aurora, Ont.-based automotive parts supplier Magna International Inc. has begun construction of a new facility in Kenitra, Morocco, to supply global automakers with exterior and interior mirror systems, as per Canplastics.

The 61,400-square-foot facility represents an investment of USD11.3 million by Magna and is expected to create up to 275 jobs. Production at the new plant is scheduled to begin in spring 2020.

"Expanding into Morocco is a strategic move for Magna, as our customers continue to grow in the region,” John O’Hara, president Magna Mechatronics, Mirrors and Lighting, said in a statement. “We also value the high level of skilled employees and engineering talent in the region, and we look forward to building a strong and capable team."

Morocco offers a "competitive export-focused production base” for global automakers, Magna’s statement also said. “The country’s government has a stated goal of building one million vehicles per year by 2025 and has been successful in attracting automakers and investment in new production plants to achieve that goal."

The facility in Kenitra will be Magna’s second location in Morocco, following the formation of a Casablanca-based engineering joint venture with Altran Technologies SA in October 2018.
MRC

MOSCOW (MRC) -- Chevron Corp has told Petrobras it wants proof a Pasadena, Texas, refinery will function as promised before it will take possession of the facility, reported Reuters with reference to sources.

Chevron announced in January it would buy the 112,229 barrel-per-day (bpd) Pasadena Refining System Inc (PRSI) refinery owned by Petrobras for USD350 million.

The transfer of ownership to Chevron was put on hold on April 2, one day after planned overhauls began on the refinery, the sources said.

Representatives of Chevron and Petrobras were not immediately available to comment.

PRSI filed a notice on Friday with the Texas Commission on Environmental Quality (TCEQ) that it was restarting the 56,000 bpd gasoline-producing Fluidic Catalytic Cracking Unit.

But, also over the weekend the catalytic reformer was shut at the refinery, the sources said. The reformer converts refining byproducts into octane-boosting components blended with gasoline.

As MRC wrote before, in May 2018, Chevron Products Company, a division of Chevron U.S.A. Inc., and Novvi LLC announced that they had entered into an agreement to jointly develop and bring to market novel renewable base oil technologies.
MRC

MOSCOW (MRC) -- Dow Inc locked 226 employees out of its Houston-area chemical plant in Deer Park, Texas, after United Steelworkers union (USW) workers rejected the latest labor contract proposal, reported Reuters with reference to USW officials.

“Our Deer Park site will continue to operate in the safe and reliable manner our neighbors, employees and customers have come to expect of us; but it will be without the United Steelworkers after 2 p.m. on April 22nd," Dow spokeswoman Ashley Mendoza said on Monday.

Dow has twice made contract proposals it called “last, best and final.” The first was rejected by 96 percent of the membership and the second by 98 percent, said Lee Medley, president of Local 13-1, which represents the Dow workers.

USW District 13 Director Ruben Garza said overtime distribution, as well as fatigue and safety due to understaffing, were at the heart of the dispute.

"The USW is committed to making sure that we have consistent and safe staffing levels,” Garza said in a statement. “These negotiations are about more than just money. We also must consider the safety and well-being of the workers and the entire community."

Mendoza said Dow and the USW had reached an impasse.

"Although we have made progress on many elements, we have come to an impasse on others," she said. "Harmonization of collective bargaining agreements within Dow across North America is critical."

As MRC reported earlier, Dow plans to invest in an alkoxylation facility on the US Gulf Coast. Upon completion, this new facility will support global growth in Dow’s core end-markets related to infrastructure and home and personal care, as well as additional end-markets where Dow continues to strengthen its position for the TRITON, TERGITOL, ECOSURF and CARBOWAX SENTRY brands.

The Dow Chemical Company is an American multinational chemical corporation. Dow is a large producer of plastics, including polystyrene, polyurethane, polyethylene, polypropylene, and synthetic rubber.
MRC

MOSCOW (MRC) -- Dutch paints and coatings maker Akzo Nobel on Wednesday met analyst expectations with a 19 percent increase in core profit to 248 million euros (USD278.2 million), as higher prices and cost savings offset raw material inflation, said the company.

Revenues were flat at 2.19 billion euros, despite falling sales volumes in China and other regions, while Akzo said it was on track to meet its financial targets set for 2020.

“We’re encouraged by the underlying business performance during this seasonally low quarter,” CEO Thierry Vanlancker said in a statement.

Raw material inflation cost 77 million euros in the first quarter and will continue in the first half of 2019, the company said, but at a lower rate than last year.

Akzo maintained its target of increasing return on sales to 15 percent by 2020, as the margin improved to 9.1 percent in the first three months of the year. Overall cost savings were on track to reach 200 million euros next year, Vanlancker said.

Akzo sold its specialty chemicals unit last year for 10 billion euros to a group of buyers led by Carlyle Group, after a bitter fight with shareholders to prevent an unwanted takeover by U.S. rival PPG Industries.
MRC