ExxonMobil to proceed with oil development in Argentina

MOSCOW (MRC) -- Exxon Mobil Corp said it was going ahead with an oil development project in Argentina that could produce up to 55,000 barrels of oil-equivalent per day (boepd) within five years, reported Reuters.

The project will include 90 wells, a central production facility and export infrastructure connected to a pipeline and refineries, the company said.

However, the country last month awarded permits for hydrocarbon exploration in 18 areas off its southern coast to companies, including Exxon, to boost its reserves, which fell in the last decade due to regulations that discouraged foreign investment in the energy sector.

If the expansion is successful, Exxon said it could invest in a second phase in the block, which would produce up to 75,000 boepd.

ExxonMobil Exploration Argentina operates the block and holds a 90 percent interest, while Gas y Petroleo del Neuquen holds the rest.

As MRC informed before, ExxonMobil said that it has completed an expansion at its Singapore refinery to upgrade its production of EHC Group II base stocks, strengthening the global supply of high-quality base stocks and enhancing the integrated facility’s competitiveness.

ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world's oil and about 2% of the world's energy.
MRC

PVC imports to Belarus grew by 17% in January-April 2019

MOSCOW (MRC) -- Overall imports of unmixed polyvinyl chloride (PVC) into Belarus increased in the first four months of 2019 by 17% year on year, totalling about 12,800 tonnes, according to MRC's DataScope report.

According to the statistical committee of the Republic of Belarus, in April of this year local converters increased significantly in the volume of PVC purchases under pressure from the seasonal factor and expectations of a serious price increase in May-June from key suppliers - producers from Russia. Total imports were about 34,500 tonnes, compared to 3,300 tonnes a month earlier.
Thus, imports of unmixed PVC reached 12,800 tonnes in January-April 2019 versus 10,900 tonnes a year earlier, with local windows producers accounting for a increase in demand.

Russian producers with the share of about 87% of the Belarusian market were the key suppliers of resin to Belarus over the stated period.
Producers from Ukraine and Germany with the share of 7% and 3% were the second and third largest suppliers, respectively.
MRC

ExxonMobil completes Singapore expansion to enhance Group II base stocks supply

MOSCOW (MRC) -- ExxonMobil said that it has completed an expansion at its Singapore refinery to upgrade its production of EHC Group II base stocks, strengthening the global supply of high-quality base stocks and enhancing the integrated facility’s competitiveness, as per Hydrocarbonprocessing.

The expansion will enable customers to blend lubricants that satisfy more stringent specifications, help lower emissions and improve fuel economy and low-temperature performance. Customers will achieve short-term and long-term cost savings through blending optimization and reformulation.

"The safe, on-schedule completion and successful startup of this expansion further enhances ExxonMobil’s competitiveness in manufacturing Group II base stocks," said Bryan Milton, president of ExxonMobil Fuels & Lubricants. 'It further establishes ExxonMobil as a key producer of fuels and petrochemical products and affirms our confidence in Singapore, where we operate ExxonMobil’s largest global integrated refining and petrochemical complex."

Supply to customers is expected in the third quarter of 2019, and builds upon recent expansions at ExxonMobil’s Rotterdam facility, which along with existing production in Baytown, Texas strengthens the global supply of high-quality base stocks.

ExxonMobil’s EHC product line has been designed to maximize the performance of all major automotive engine oil grades and to enhance the performance of finished lubricants used in multiple industries.

Construction of the expansion began in 2017 and was completed safely and on schedule with 1 million workforce hours. At peak construction, more than 300 workers were employed.

Earlier this year, ExxonMobil announced a final investment decision on a multi-billion dollar expansion of the Singapore integrated manufacturing complex as part of the company’s plan to significantly increase earnings potential of the site.

As MRC wrote previously, in October 2017, ExxonMobil Chemical Company commenced production on the first of two new 650,000 tons-per-year high-performance polyethylene (PE) lines at its plastics plant in Mont Belvieu, Texas.
The full project, part of the company’s multi-billion dollar expansion project in the Baytown area and ExxonMobil’s broader Growing the Gulf expansion initiative, will increase the plant’s polyethylene capacity by approximately 1.3 million tons per year.

ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world's oil and about 2% of the world's energy.
MRC

Chin May crude runs drop from peak

MOSCOW (MRC) -- China’s crude oil throughput in May rose from a year earlier but eased from a record reached in April, government data showed, as refiners curbed output amid weakening fuel demand, reported Reuters.

Crude throughput last month climbed 2.8% from a year earlier to 51.9 million tons, or 12.22 million barrels per day (bpd), data from the National Bureau of Statistics (NBS) showed. That compared to an all-time high in April of 12.68 million bpd.

Seng Yick Tee, senior director of consultancy SIA Energy said lackluster domestic fuel demand, for gasoline in particular, prompted refiners to curb production amid weakening margins.

The refinery throughput, the lowest in four months on a daily basis, also occurred as industrial output growth unexpectedly slowed to a more than 17-year low in May.

China’s new car sales declined for the 11th month in a row in May due to a lack of consumer confidence in a slowing economy.

"The negative growth in the auto-making industry is slowing China’s incremental fuel demand," said Tee.

Refinery throughput in China, the world’s biggest oil importer and second-largest consumer, is expected to rise as two new plants start up.

Privately owned Hengli Petrochemical ramped up its new 400,000-bpd refinery to full operation in late May, while similar-sized Zhejiang Petrochemical also started trial runs last month.

For the first five months of the year, Chinese crude throughput rose 4.4% from a year earlier to 259.49 million tons, the NBS reported. The NBS data also showed China’s crude oil production in May climbed 1% from a year earlier to 16.23 million tons, or about 3.82 million bpd. That was flat from April.

Output in the January to May period increased 0.7% from a year earlier to 79.29 million tons, as national oil majors stepped up drilling amid a government call to boost domestic supply security.

Natural gas output was 14.4 billion cubic meters (bcm) in May, 12.9% higher than a year earlier.

Output in the first five months expanded at a robust 9.8% from a year ago to 72.5 bcm. Natural gas output increased faster than crude oil as state companies prioritized increases in spending on the cleaner burning fuel to meet strong demand growth.
MRC

Copersucar sees 50% ethanol demand rise in U.S. with new E15 policy

MOSCOW (MRC) -- Brazil’s Copersucar SA, the world’s largest sugar and ethanol merchant, projects that ethanol demand in the United States could increase by 50% when the new policy to year-round sales of E15 is fully implemented, said Hydrocarbonprocessing.

Copersucar’s Chief Executive Joao Roberto Teixeira said in a call with reporters on Monday that the company sees strong potential for ethanol sales in the U.S., where it operates with its subsidiary Eco-Energy, in the next two to three years.

As MRC informed earlier, in December 2017, Copersucar, one of the world’s largest ethanol merchants, and BP’s Brazil unit said on Thursday they will form a 50-50 logistics JV in the country. The venture will operate Copersucar’s recently built ethanol storage complex in the Brazilian city of Paulinia, the country’s largest fuels hub.


MRC