Lukoil set up JV with Bashneft

(Lukoil) -- Lukoil and Bashneft, signed an agreement in Moscow to establish a joint venture and stipulate conditions for the development of two fields named after Roman Trebs and Anatoly Titov. According to the agreement, Lukoil will purchase 25.1% of an Bashneft subsidiary, while the license and subsoil use rights for R.Trebs and A.Titov fields will be re-issued in favor of this subsidiary. In its turn, the joint venture will purchase from Lukoil 29 exploration wells located in the license area.

The parties also agreed to transport the oil from R.Trebs and A.Titov fields via the Varandey Oil Export Terminal owned by Lukoil to the Barents Sea coast, where the crude will be loaded into tankers.

The parties will consider supplying the produced associated petroleum gas to the energy centre of the Yuzhnoye-Khylchuyu field, which is developed by Naryanmarneftegaz (a joint-venture of Lukoil - 70% and ConocoPhillips - 30%). The associated petroleum gas will be used for generation of electric power to support the activities of the production units at R.Trebs and A.Titov fields.

MRC

Also a type structure of PP production was changed. Under terms of low demand and efficient import offer from Russian producers raffia output reduced in March while homopolymer propylene output increased for BOPP-films production. Nizhnekamskneftehim declared production of new types of propylene. Tomskneftehim increased production of pipe stat copolymer propylene.

MRC

(Plastemart) -- The Dow Chemical has inked a joint development deal with OPX Biotechnologies to devise a commercial scale procedure for manufacturing of bio-based acrylic acid utilizing a fermentable sugar such as cane and corn sugar. As per the deal, OPX Biotechnologies and Dow plan to produce bio-based acrylic acid with performance properties similar to that of acrylic acid manufactured from petroleum feedstock.

If the study proves to be successful, both companies will work on the commercialization aspects of bio-based acrylic acid to bring it into the market within a period of three to five years. International manufacturer of acrylic esters and acids, Dow will offer its technical knowledge in product development, process optimization and industrial chemistry, while OPX Biotechnologies will utilize its Efficiency Directed Genome Engineering technology in bio-processing and strain development.

MRC

(Plastemart) -- German engineering firm Ferrostaal AG plans to build a petrochemical plant in West Papua at a cost of USD 900 mln. ⌠The investment is about USD 900 million but it can change depending on the project and everything needed, including the gas supply, Ferrostaal petrochemical division senior executive manager Soenke Gloede said.

The company plans to procure gas for the plant from the Tangguh LNG plant to support the operation of the plant, which would produce methanol and dimethyl ether (DME). After planning and preparation, construction is expected to commence in 2013, with operations estimated to commence in 2016. Capacities include around 1 mln tpa of methanol and up to 200 KTa of DME.

MRC

(Reuters) - Taiwan's Formosa Petrochemical Corp has reduced runs at its 2.93 mln tonnes per year (tpy) naphtha cracking complex to around 90-95 percent from full-tilt due to weak petrochemical margins, and is currently seeking lower spot volumes, traders said on Monday. Formosa, Asia's top naphtha buyer, is currently in the market seeking around 100 KT of spot naphtha for second-half May arrival. It is unclear how long Formosa, which needs an average of 600 KT of spot and term naphtha a month, will maintain the run cuts.

Prices of polyethylene or plastics, made mainly from ethylene, were not rising as fast as sellers had hoped to reflect the escalating naphtha costs.

MRC