ExxonMobil seeks to sell Australian Bass Strait oil, gas assets

MOSCOW (MRC) -- Oil major ExxonMobil Corp said on Wednesday it was looking to sell its 50% stake in the Gippsland Basin oil and gas development in Australia's Bass Strait as part of a broader review of its portfolio of assets around the world, reported Reuters.

The Gippsland Basin joint venture, off the state of Victoria, has long been the mainstay oil and gas supplier into southeastern Australia, but output from the fields is in decline.

Operator Exxon's 50-50 joint venture partner in the assets is global miner BHP Group. BHP declined to comment on whether it might sell its own stake or whether it would be interested in buying Exxon's assets.

"ExxonMobil will be testing market interest for a number of assets worldwide, including its operated producing assets in Australia, as part of an ongoing evaluation of its assets," the company said in an emailed statement.

"No agreements have been reached and no buyer has been identified," the company said in the statement. It said operations would continue as normal throughout the effort to sell the assets, without disclosing any targeted value for a deal.

The statement was released after the Gippsland Times newspaper reported the company's workers in Gippsland had been told by ExxonMobil Australia chairman, Nathan Fay, that the assets were on the market.

BHP said in an emailed comment that it had been notified by Exxon of the latter's plan to put its interests in the Gippsland Basin joint venture (GBJV) up for sale.

"BHP recognises the importance of GBJV to the reliable supply of gas in to the east coast domestic market and we remain committed to maintaining that supply," a BHP spokesman said in an emailed comment.

Exxon's other producing asset in Australia is a 25% stake in the giant Gorgon liquefied natural gas project in Western Australia, which is not part of the sale process.

As MRC informed before, ExxonMobil Corp shut the chemical plant at its Beaumont, Texas, refining and petrochemical complex on Thursday morning, 19 September, because of flooding from Tropical Storm Imelda.

The company operates a cracker with a capacity of 830,000 mt of ethylene and 195,000 mt of proplyelen per year, low density polyethylene (LDPE) plant with a capacity of 236,000 mt per year and linear low density polyethylene plant with a capacity of 727,000 tonnes per year.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polyprolypele (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption was 1,081,100 tonnes in the first half of 2019, up by 8% year on year. Deliveries of all PE grades increased. Meanwhile, the estimated consumption of PP in the Russian market totalled 694,210 tonnes in January-June 2019, up by 14% year on year. The supply of propylene block copolymers (PP-block) and propylene homopolymers (PP-homo) increased.

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

MOSCOW (MRC) -- Imports of SIBUR-Khimprom's expandable polystyrene (EPS) to Ukraine fell in January-August 2019 by 18% year on year to 11,600 tonnes, according to MRC's DataScope report.

This figure was at 14,100 tonnes in the first eight months of 2018.

The share of Russian material of SIBUR-Khimprom was 50% in the total EPS shipments to Ukraine over the stated period versus 60% in January-August 2018.

Russian material accounted for 49% (1,700 tonnes) in the total EPS imports last month versus 54% (1,900 tonnes) a month earlier and 52% in August 2018.

EPS shipments to the Ukrainian market did not change year on year in January-August 2019, totalling 23,300 tonnes.

MRC

MOSCOW (MRC) -- Russia's overall production of polypropylene (PP) rose in the first eight months of 2019 by 2% year on year to 973,700 tonnes. Only one producers out of seven reduced the capacity utilisation, according to MRC ScanPlast.

August PP production in the country decreased to 119,000 tonnes, compared with 122,700 tonnes in July; SIBUR Tobolsk decreased their capacity utilisation. Russia's overall PP production reached 973,700 tonnes in January-August 2019, compared to 954,100 tonnes a year earlier. Only Poliom reduced production volume, and the largest increase in output was shown by Tomskneftekhim.

The structure of PP production by plants looked the following way over the stated period.

SIBUR Tobolsk reduced its capacity utilisation in August, its total production fell to 32,900 tonnes from 37,600 tonnes a month earlier. The Tobolsk plant's total PP production reached 319,900 tonnes in the first eight months of 2019, which corresponds to last year's figure.

Poliom (Titan Group) last month produced about 19,500 tonnes of polypropylene, compared with 18,900 tonnes in July. Total PP production at the plant over the reported period was about 146,600 tonnes, down 1% year on year.

Nizhnekamskneftekhim produced 18,500 tonnes of propylene polymers in August versus 18,800 tonnes a month earlier. The Nizhnekamsk plant's overall output of polymer exceeded 143,300 tonnes in the first eight months of 2019, compared to 142,400 tonnes a year earlier.

Tomskneftekhim last month produced about 12,500 tonnes against 12,000 tonnes a month earlier. Total PP production by the producer increased to 99,300 tonnes in January-August 2019, up 8% year on year.

August PP production at Ufaorgsintez reached about 11,500 tonnes from 11,800 tonnes a month earlier. The Ufa plant's overall output of polymer reached 89,900 tonnes in January-August 2019, up 1% year on year.

NPP Neftekhimiya (Kapotnya) produced about 13,000 tonnes last month, compared to 12,200 tonnes in July. The plant's overall PP output reached 96,200 tonnes over the stated period, up 7% year on year.

Stavrolen (LUKOIL) reduced its capacity utilisation in August, the plant's total production of propylene polymers was 11,100 tonnes versus 11,400 tonnes a month earlier. The Budenovsk plant's overall output of propylene polymers increased in the first seven months of 2019 to 78,600 tonnes from 74,100 tonnes a year earlier.


MRC

MOSCOW (MRC) -- Imports of Nizhnekamskneftekhim's high impact polystyrene (HIPS) and general purpose polystyrene (GPPS) to Ukraine decreased in January-August 2019 by 27% year on year to 8,400 tonnes, according to MRC's DataScope report.

This figure was at 11,500 tonnes in the first eight months of 2018.

Nizhnekamskneftekhim's material accounted for 53% of the total structure of HIPS and GPPS imports to the Ukrainian market over the stated period versus a share of 69% in January-August 2018.

Overall imports of these polystyrene (PS) grades into the Ukrainian market dropped in the first eight months of 2019 by 5% year on year to 15,700 tonnes from 16,700 tonnes a year earlier.

Nizhnekamskneftekhim is the only Russian HIPS and GPPS supplier to Ukraine.

MRC

MOSCOW (MRC) -- ExxonMobil Corp shut the chemical plant at its Beaumont, Texas, refining and petrochemical complex on Thursday morning, 19 September, because of flooding from Tropical Storm Imelda, reported Reuters with reference to company spokesman Jeremy Eikenberry's statement.

Sources familiar with plant operations told Reuters on Thursday that Exxon was preparing to shut the 369,024 barrel-per-day (bpd) refinery adjoining the chemical plant because of flooding.

The company operates a cracker with a capacity of 830,000 mt of ethylene and 195,000 mt of proplyelen per year, low density polyethylene (LDPE) plant with a capacity of 236,000 mt per year and linear low density polyethylene plant with a capacity of 727,000 tonnes per year.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polyprolypele (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption was 1,081,100 tonnes in the first half of 2019, up by 8% year on year. Deliveries of all PE grades increased. Meanwhile, the estimated consumption of PP in the Russian market totalled 694,210 tonnes in January-June 2019, up by 14% year on year. The supply of propylene block copolymers (PP-block) and propylene homopolymers (PP-homo) increased.

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