Petrobras pays a USD853 mln fine in the US and ends the Lava Jato case settlement

Petrobras pays a USD853 mln fine in the US and ends the Lava Jato case settlement

MOSCOW (MRC) -- Petrobras has fulfilled the commitments it made in 2018 to the US and Brazilian governments that resolved an investigation into the Lava Jato corruption scandal, said the company.

As reported in a statement this Monday, Petrobras has fully completed its obligations under the agreement, for which it also collaborated with the Securities Market Commission (SEC).

In total, the Brazilian company has disbursed up to USD 853.2 million during the period of collaboration with the US authorities. Of this amount, 10% has been allocated to criminal fines, another 10% to civil fines for the SEC and another 80% to the Brazilian authorities.

The oil company has also pledged to continue improving its internal controls and compliance program, and has agreed to cooperate with US agencies, including by submitting annual reports to the Justice Department.

After finalizing the collaboration, the Department of Justice has recognized that Petrobras was the victim of a covert scheme of embezzlement by the Brazilian public authorities in the ‘Lava Jato’ operation.

“With the conclusion of the obligations provided for in the agreement, Petrobras closes an important stage in its recovery path. We have finally turned the page and the end of the agreement with the Department of Justice shows that we are living in new times, with our compliance systems ‘being strengthened day by day “, underlined the Director of Governance and Compliance, Salvador Dahan.

Under the deal, the US acknowledged that Petrobras was a victim of the Lava Jato scandal.

The scandal, called Lava Jato, or Car Wash, was a pay-to-play bribery scheme. Under it, Petrobras awarded inflated contracts. The excess money went to individual executives and politicians.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,176,860 tonnes in the first half of 2021, up by 5% year on year. Shipments of exclusively low density polyethylene (LDPE) decreased. At the same time, PP shipments to the Russian market were 727,160 tonnes in the first six months of 2021, up by 31% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased. Supply of statistical copolymers of propylene (PP random copolymers) subsided.

Headquartered in Rio de Janeiro, Petrobras is an integrated energy firm. Petrobras' activities include exploration, exploitation and production of oil from reservoir wells, shale and other rocks as well as refining, processing, trade and transport of oil and oil products, natural gas and other fluid hydrocarbons, in addition to other energy-related activities.
MRC

Evonik plans to divest its plant in Germany

Evonik plans to divest its plant in Germany

MOSCOW (MRC) -- Evonik Industries AG (Essen, Germany) intends to divest its Lulsdorf site in the medium term, said Chemengonline.

More detailed plans will be drawn up by spring 2022. The aim is to transfer the entire site to a new owner, although the sale of parts of the business to various interested parties will also be considered. The company has decided to take this step amid the regulatory phase-out of alkoxide production in Lulsdorf and in order to create prospects for the employees from an early stage. Various potential investors have already expressed interest in the chemical site.

Evonik employs almost 600 people at the site, which is south of Cologne. It mainly produces alkoxides, potassium derivatives and – in association with plants in neighboring Wesseling – cyanuric chlorides. The site and its businesses generate annual sales of around €280 million. Its location at the center of the Western European chemical industry as well as excellent logistical links and reliable supply of raw materials make it particularly suitable for the production of high-volume preliminary and intermediate products.

The business at the Lulsdorf site belongs to the Functional Solutions business line, which is part of the Performance Materials division. Following the planned divestment of the superabsorbents business, the transfer of the site to a new owner is the next logical step in the alignment of Evonik’s portfolio to specialty chemicals.

Lulsdorf has more than 100 years of tradition as a chemical production site. Evonik produces alkoxides – among other things – which are manufactured by means of amalgam electrolysis. From the end of 2027, the operation of this process will no longer be possible due to restrictions imposed by the European Union. The corresponding regulatory procedure has not yet been formally concluded, but no changes are expected.

Alkoxides are needed for the production of biodiesel or, in the future, for the chemical recycling of PET. Evonik also produces them at locations in Argentina (Rosario) and the USA (Mobile).

As MRC informed earlier, in February, 2020, Dow and Evonik entered into an exclusive technology partnership. Together, they plan to bring a unique method for directly synthesizing propylene glycol (PG) from propylene and hydrogen peroxide to market maturity.

According to MRC's ScanPlast report, Russia's estimated PET consumption totalled 411,200 tonnes in the first six month of 2021, up by 12% year on year. Russian companies processed 62,910 tonnes in June, compared to 85,890 tonnes a month earlier.

Evonik Industries is one of the world's leading chemical companies in the promising areas of specialty chemistry. The company's products are focused on the high growth rates of megatrends, especially healthcare, nutrition, resource efficiency and globalization.
MRC

Oil prices increased as OPEC sticks to gradual output plan

Oil prices increased as OPEC sticks to gradual output plan

MOSCOW (MRC) -- Oil prices jumped on Tuesday, with U.S. crude hitting its highest since 2014 and Brent futures climbing to a three-year high, after the OPEC+ group of producers stuck to its planned output increase rather than raising it further, said Hydrocarbonprocessing.

On Monday, OPEC+ agreed to adhere to its July pact to boost output by 400,000 barrels per day (bpd) each month until at least April 2022, phasing out 5.8 MMbpd of existing production cuts.

U.S. West Texas Intermediate (WTI) oil closed up USD1.31, or 1.7%, at USD78.93 a barrel. During the session it surged more than 2% to as high as USD79.48, the most in nearly seven yrs. Brent crude settled up USD1.30, or 1.6%, at USD82.56. Earlier, Brent hit a three-yr high of USD83.13. Both contracts extended gains made on Monday, when they each rose more than 2%.

"The market is realizing we are going to be undersupplied for the next couple of months and OPEC seems to be happy with that situation," said Phil Flynn, an analyst at Price Futures Group in Chicago. Oil prices have already surged more than 50% this yr, adding to inflationary pressures that crude-consuming nations such as the United States and India are concerned will derail recovery from the COVID-19 pandemic.

Late last month, the OPEC+ Joint Technical Committee (JTC) said it expected a 1.1-MMbpd supply deficit this yr, which could turn into a 1.4-MMbpd surplus next yr. Despite pressure to ramp up output, OPEC+ was concerned that a fourth global wave of COVID-19 infections could hit the demand recovery, a source told Reuters a little before Monday's talks.

Rocketing global natural gas prices, which may incentivize some power generators to switch from gas to oil, mean crude prices are likely to remain supported even though there could be a short-term pullback, said Gary Cunningham, director of market research at Tradition Energy.

As per MRC, Russia is expected to have 3.464 million tonnes of primary oil refining capacity offline in October, a weekly estimate based on Refinitiv Eikon data and Reuters calculations showed on Friday, up 9.1% from last week's estimate. That is still be lower than the previous month, with many plants expected to finish maintenance. Expected idled refining capacity for September was estimated at 3.943 million tonnes, down 7.9% from last week's estimate.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,396,960 tonnes in January-July 2021, up by 7% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 841,990 tonnes in the first seven months of 2021, up by 29% year on year. Supply of propylene homopolymers (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of statistical copolymers of propylene (PP random copolymers) subsided.
MRC

Vietnam PV Power picks banks to facilitate two LNG project loans

Vietnam PV Power picks banks to facilitate two LNG project loans

MOSCOW (MRC) -- Vietnam's state-run PetroVietnam Power Corp has signed a deal to allow a consortium of two local banks to arrange a USD1.4 B syndicated loans for two liquefied natural gas (LNG) projects, said Hydrocarbonprocessing.

The funds will be used for the construction of the 1,500-megawatt (MW) total capacity Nhon Trach 3 and 4 plants, which were granted government approval in 2018.

Techcombank and Military Bank were appointed to be lead arrangers to facilitate and lead an investor group, the government said in a statement.

The company last year signed a deal with Citibank and ING Bank for funds arrangement for these projects.

The plants, which are based in the southern province of Dong Nai, are scheduled to start commercial operations from the fourth quarter of 2022, according to PetroVietnam Power.

Vietnam's industry minister has said the country would begin importing LNG from the year after amid its rising demand for electricity.

Earlier it was reported that Hyosung Vina Chemicals, a subsidiary of a major petrochemical manufacturer in the country, Hyosung Corporation, at the end of July resumed production at a new polypropylene (PP) plant in Ba Ria Vung Tau province (southern Vietnam) after unscheduled maintenance due to the discovery of a technical malfunction. So, unplanned repair work at this enterprise with a capacity of 300,000 tonnes of PP per year was started on 9 July this year.

According to MRC's ScanPlast report, Russia's PP shipments to the Russian market were 841,990 tonnes in the first seven months of 2021, up by 29% year on year. Supply of propylene homopolymers (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of statistical copolymers of propylene (PP random copolymers) subsided.
MRC

Oil spill contained at Marathon Petroleum Refinery in Texas City

Oil spill contained at Marathon Petroleum Refinery in Texas City

MOSCOW (MRC) -- Crews at the second-largest U.S. refinery were containing crude oil gushing from a giant storage tank at the Houston-area facility on Wednesday, a company spokesman said, as per Reuters.

No injuries were reported as crude oil was being contained with an earthen berm at the 593,000 barrel-per-day (bpd) Marathon Petroleum Corp Galveston Bay Refinery in Texas City, Texas, said company spokesman Jamal Kheiry.

"Cleanup is underway, and regulatory notifications have been made," Kheiry said. "An investigation will be conducted to determine the cause of the release."

Video broadcast on Houston television stations on Wednesday showed brown crude gushing from around a valve on the outside of the tank, filling the berm designed to contain spills.

The Texas City Emergency Management Department said a state highway running along the side of the refinery near the leak was shut to all but essential vehicles. The roadway shutdown was expected to last most of the day.

Texas City is 37 miles (59 km) southeast of Houston.

As per MRC, Marathon Petroleum plans to permanently close two small US oil refineries in Martinez, California, and Gallup, New Mexico, the company said, eliminating 800 jobs in response to lower fuels demand. The largest US refiner by volume had earlier idled the two facilities following weak demand due to COVID-19 outbreaks in the United States.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,396,960 tonnes in January-July 2021, up by 7% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 841,990 tonnes in the first seven months of 2021, up by 29% year on year. Supply of propylene homopolymers (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of statistical copolymers of propylene (PP random copolymers) subsided.

Marathon Petroleum Corporation (MPC) is a leading, integrated, downstream energy company headquartered in Findlay, Ohio. The company operates the nation's largest refining system. MPC's marketing system includes branded locations across the United States, including Marathon brand retail outlets.
MRC