Petrofac wins contracts worth GBP23m-plus in Middle East

MOSCOW (MRC) -- Petrofac has secured a number of new awards and contract extensions, with a combined value of more than GBP23 million, to provide training solutions for key National Oil Company and International Oil Company clients in Oman, the UAE and Iraq, as per Energyvoice.

In Oman, these include two new awards for the provision of HSE and Technical training solutions and a contract extension for the provision of assessment services.

A new contract has also been awarded in the Sultanate for the delivery of an internationally accredited operations and maintenance training programme through the world-class Takatuf Petrofac Oman (TPO) training centre in Muscat, which Petrofac and its partner Takatuf Oman opened in late 2018 to provide training for the country’s next generation of workforce for the industry.

In the UAE, where Petrofac has operated for more than 30 years, with around 4,000 employees in-country, a contract has been secured for the provision of on-the-job technical training and other specialised services to support a client’s oil and gas training facility.

In Iraq, where Petrofac is committed to contributing to the continuous development of the Iraqi workforce and has delivered more than 50,000 in-country delegate training days since 2010, a contract has been renewed to deliver training solutions.

Karim Osseiran, Global Head of Petrofac’s Training Services business, commented: “These contract awards demonstrate the continued expansion of our differentiated training services offering in key countries, where supporting the national workforce development agenda is core to our approach. Petrofac has a strong track record in delivering large scale projects and solutions focused on the transfer of knowledge and technology, that have significant contribution to delivering in-country value.”
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MOSCOW (MRC) -- Oil and gas producer Occidental Petroleum Corp made a USD57 billion bid for Anadarko Petroleum Corp, topping Chevron Corp’s USD50 billion offer and setting up the first hostile takeover battle for a major oil company in years, as per Hydrocarbonprocessing.

The surprise $76-per-share bid comes after Occidental had been trying to woo Anadarko and had made two other proposals since late March. A deal would make Occidental the largest producer of oil in west Texas’s Permian basin, where production has boomed in recent years.

The bid pushed Anadarko shares up more than 14 percent in premarket trading to USD73, well above the $65 per share offered by Chevron. Occidental shares fell about 6 percent to USD58.73. Occidental boosted the cash portion of its offer to 50 percent, up from two earlier offers. Chevron’s offer comprised 25 percent cash and 75 percent stock.

A deal would boost Occidental’s production in the lucrative Permian to 533,000 barrels of oil equivalent production per day, the company said.

"We’ve studied this very diligently," said Vicki Hollub, Occidental’s chief executive, adding the deal would boost cash flow and allow Occidental to raise its dividend over time. “We’re the partner of choice,” she said. Still, Occidental has lost 7 percent of its value since it first disclosed its interest in Anadarko.

“This is not a smart move on part of Occidental given the difference of size between the two companies,” said Raymond James analyst Muhammed Ghulam. “Chevron is much bigger and has the resources to combine the two companies, and has significant deep water experience,” Ghulam said, referring to Anadarko’s deep water Gulf of Mexico assets.

A merger would help lower costs for Anadarko’s shale operations in Texas and Colorado, boosting returns. Occidental also brings project management expertise to assure Anadarko’s liquefied natural gas project in Mozambique gets built on time and on budget, Hollub said. Anadarko plans to reply to the offer today, a spokesman said.

In a letter to Anadarko’s board, Occidental described two prior purchase proposals, each of “significantly higher value” than that made by Chevron. Its offer would require shareholder votes by Occidental and Anadarko holders.

Anadarko would also be liable to pay Chevron a USD1 billion break-up fee if its board chooses Occidental’s offer. “It is unfortunate that Anadarko agreed to pay a break up fee of USD1 billion, representing approximately USD2 per share, without even picking up the phone to speak to us after we made two proposals during the week of April 8,” Hollub wrote in a letter to Anadarko’s board on Wednesday.

Analysts have said they expect the industry to consolidate more as small oil producers, who revolutionized the sector through advances in horizontal drilling and hydraulic fracking, have had to cut spending as investors press for higher returns and their stock prices languish. The Permian produces about 4 million barrels per day and is expected to hit 5.4 million bpd by 2023, according to IHS Markit, more than the total production of any OPEC country other than Saudi Arabia.

Occidental’s USD76 per share offer comprises $38 in cash and 0.6094 of its shares. The offer represents a premium of 19 percent to Anadarko’s closing price on Tuesday and 62 percent to the closing price on April 11, the day before Chevron made its bid.

Under Chevron’s USD65 per share bid, Anadarko shareholders are set to receive 0.3869 shares of Chevron and USD16.25 in cash for each Anadarko share.
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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.
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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.
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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.
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