Al-sumoud refinery operating at its capacity

MOSCOW (MRC) -- Iraq’s Al-Sumoud refinery in Baiji is operating at its planned capacity and a fire that broke out in a surrounding area is now under control, Iraqi news agency (INA) reported, citing a statement from the oil ministry, said Hydrocarbonprocessing.

The fire broke out on nearby agricultural land and was “outside the refinery and did not affect production”, the statement added.

As it was written earlier, al-Sumoud refinery (formerly Baiji) in northern Salaheddine resumed its production of oil derivatives, an oil expert said Wednesday (March 20th). The government also is expanding oil refineries that are already in operation such as al-Doura in Baghdad and al-Shuaiba in Basra. Al-Jawahiri called for the facilitation of investment contracts so that refinery construction and rehabilitation can go forward, and for reduced bureaucracy in order to invigorate the industry.
MRC

PetroChina Lanzhou shuts PE plant

MOSCOW (MRC) -- PetroChina Lanzhou Petrochemical has shut its HDPE/LLDPE swing plant for a maintenance turnaround, said Apic-online.

A Polymerupdate source in China informed that the company has started brief maintenance at the plant on August 8, 2019. The plant is expected to resume production on August 13, 2019.

Located at Gansu province in China, the HDPE/LLDE swing plant has a production capacity of 300,000 mt/year.

As MRC informed earlier, in June 2019, Lanzhou Petrochemical has brought on-stream its No. 4 cracker following a maintenance turnaround.

PetroChina Company Limited, is a Chinese oil and gas company and is the listed arm of state-owned China National Petroleum Corporation, headquartered in Dongcheng District, Beijing. It is China's biggest oil producer.
MRC

PVC exports from Russia up by 62% in Jan-July 2019, imports more than doubled

MOSCOW (MRC) - Imports of suspension polyvinyl chloride (SPVC) in Russia reached about 122,100 tonnes in the first seven months of the year, up 62% year on year. Imports also increased by 112% year on year to 26,900 tonnes, according to MRC's DataScope report.

This year, Russian producers showed rather high volumes of polyvinyl chloride export even taking into account scheduled maintenance works of two large plants and high seasonal demand in the domestic market. Last month's exports of Russian suspension (excluding shipments to the countries of the Customs Union ) were about 21,900 tonnes, compared to 15,700 tonnes in June.

Thus, overall exports of PVC to Russia totalled about 122,100 tonnes in the first seven months of 2019, compared to 75,500 tonnes a year earlier. Indian buyers were the main foreign importers of Russian resin this year. Overall sales of resin were about 73,400 tonnes over the stated period.
High seasonal demand in the domestic market and scheduled maintenance works at two producers in the last two months have led to a serious increase in PVC imports to Russia.

July imports of suspension polyvinyl chloride (SPVC) in Russia increased to 13,700 tonnes, compared with 5,200 tonnes in June, with the main bulk of purchases occurred for US PVC (about 8,400 tonnes). Overall imports totalled about 26,900 tonnes over the stated period versus 12,700 tonnes a year earlier.
MRC

Saudi Aramco sets stage for IPO

MOSCOW (MRC) -- Saudi Aramco unveiled a USD15 billion deal to expand its global refining footprint and held its first-ever earnings call with financial analysts, twin moves that could bolster investor confidence as the state-owned oil giant revs up plans to list shares, said WSJ.

Aramco's net income for H1 2019 was USD46.9 billion. This is actually a 12% decrease from its net income for the first half of 2018, but was expected because the price of the Brent oil benchmark has averaged $66 per barrel this year as opposed to USD69 per barrel last year. The company continues to diversify by growing its downstream sector as well as become more integrated.

Yet, the big questions concerning the strength of the company as a possible investment for outsiders remains undressed. Specifically, potential investors need to understand Aramco's relationship with the Saudi government. This was only addressed at one point during the call when an analyst asked about Aramco's dividend. According to figures provided by Aramco, the company paid USD26.4 billion to its shareholder in "Ordinary Dividends" in H1 2019. This was almost identical to the amount paid in H1 2018. However, Aramco paid another USD20 billion to Saudi Arabia in "Special Dividends." This reflects an increase of USD14 billion over last year's H1 dividend.

In answering the question, Aramco's CFO, Khalid al-Dabbagh, explained that Aramco's executives and board of directors policy regarding the Ordinary Dividend is based on three criteria: sustainability, affordability and a benchmark. According to al-Dabbagh, such a high dividend in 2019 was possible despite lower profits because Aramco made more than anticipated in 2018. However, he did not address the fact that this incomparably high dividend is given because it is needed to satisfy a significant part of Saudi Arabia's budget. Saudi Arabia, as a country, could not survive without this dividend and its royal family could not prosper.

Even more important are the implications of this dividend should Aramco go public. For example, will this type of dividend be available to the holders of publicly traded shares or will the Saudi government be the only recipient of "Special Dividends" or even the "Ordinary Dividends" from Aramco? If Aramco makes its lucrative dividend available to shareholders other than the Saudi government, then Aramco shares could prove highly valuable. On the other hand, if Aramco continues to fund the Saudi government through a dividend that is unavailable to other shareholders, then the public could very well find Aramco shares a highly unattractive prospect.
MRC

HMEL reduces run rates at Bhatinda PP unit

MOSCOW (MRC) -- Mittal Energy Limited (HMEL) has decreased production runs at Polypropylene (PP) plant owing to technical issues, said Apic-online.

A Polymerupdate source in India informed that the company has cut the production runs at the plant to around 60-70% of capacity levels in early-August, 2019. The plant is likely to operate at the same levels until the plant shuts for maintenance in last week of August 2019.

Located at Bhatinda, Punjab in India, the PP plant has a production capacity of 440,000 mt/year.

As MRC informed earlier, HPCL-Mittal Energy Ltd (HMEL) has recently received clearance from India’s ministry of environments for the polymer addition project at its Guru Gobind Singh refinery and Petrochemical complex.

Hindustan Petroleum Corporation Limited (HPCL) is an Indian state-owned oil and natural gas company with its headquarters at Mumbai, Maharashtra and with Navratna status. HPCL has about 25% marketing share in India among PSUs and a strong marketing infrastructure. The Government of India owns 51.11% shares in HPCL and others are distributed amongst financial institutes, public and other investors.
MRC