BP launches TNK-BP stake sale talks

(Rianovosti) -- British oil major BP has launched a 90-day "good faith" negotiating process with its Russian partners in TNK-BP, to sell a part or all of its 50 percent stake in the joint venture, BP said.

The Alfa Access-Renova (AAR) consortium of Russian shareholders has expressed willingness to exercise its right to enter a period of negotiation required by the TNK-BP shareholder agreement to purchase a part or all of BP’s 50 percent share in TNK-BP, BP said in a statement.

"BP is also able to, and will, enter into negotiations with other interested parties in parallel for the sale of its share in TNK-BP," the oil giant said. "There can be no guarantee that any transaction will take place."

BP and AAR have been locked in a long-running dispute over management of their Russian joint venture, which resulted in the replacement of the former TNK-BP CEO Robert Dudley in 2008.

Russian billionaire Mikhail Fridman, a member of AAR, which represents the four billionaires of Russian origin who own half of TNK-BP, resigned as TNK-BP's CEO in late May due to what he called a collapse of corporate management (see MRC news from June, 01, 2012).

The Guardian suggested in an article on Sunday the UK oil firm could net a USD30 billion windfall from its 50 percent stake, as it intended open talks with other potential buyers besides AAR in order to resolve the long-standing shareholder conflict in Russia’s third largest oil company.

The Russian shareholders have indicated they will only offer USD7 billion for BP's stake, although acknowledging it is worth around USD20 billion, claiming a USD13 billion discount would compensate AAR for the failure of a previous attempt by BP to tie up a separate deal with state-owned Rosneft earlier this year against AAR's wishes, the Guardian said.

Analysts polled by RIA Novosti on Tuesday said Russian-state-owned companies would be the most likely candidates to purchase BP’s stake, if the British oil major failed to agree a deal with the AAR consortium.
MRC

(pm) -- Construction of the infrastructural facilities for a new gas and chemical complex is underway in Atyrau region, the press service of the Ministry of Oil and Gas of Kazakhstan informs.

“Presently, the planning of 78% of the main technological installations and network is complete within the first stage of the construction process. The planning of the infrastructural facilities is 95% complete,” the statement of the Ministry reads.

Besides, driving lanes are being built to some recently constructed facilities as well railroads, distribution station, electric lines, etc.

Construction of this complex will allow temporally employ up to 6.4 thousand people (during the first and second stages) and up to 900 people will be provided permanent jobs during the operation period.

The project will have two stages: the first stage – establishment of production of polypropylene with the capacity of 500 thousand tons a year, the second stage – establishment of production of polyethylene with the capacity of 800 thousand tons a year.

In whole, implementation of the project began in 2010 and scheduled to end in 2012. The cost of the project is 6.3 bln US dollars.
MRC

(Plastemart) -- Supreme Petrochem Ltd (SPL) has declared that its Q1-FY13 net profit was down at Rs 4.6 crore versus Rs 21 crore, and net sales were up at Rs 597 crore versus Rs 512 crore.

The Board of Directors, in its meeting held on July 18, 2012, has recommended a Dividend of Rs1.40 per equity share of Rs10 each for the year 2011-12. SPL has reported net revenues of Rs 2272.67 crores for the year ended June 30, 2012 as compared to Rs 1943.49 crores in the preceding year. Net profit was Rs 313.7mn for 2011-12 as compared to Rs 87.69 crores for 2010-11.

The company was impacted by a fall in export sales due to overall downturn in various regions of the global economy compounded by continuing disturbances in many countries in Gulf region and ongoing debt crises in Europe, continuing depreciation in the value of Rupee in parity to US Dollar and wide fluctuation in all major raw material prices. These factors not only increased the cost but also resulted in lower volume sales in particular to the price sensitive sectors thus putting pressure on the margins of the Company.

Supreme Petrochem Ltd (SPL) is India’s largest producer and exporter of polystyrene polymer based in Mumbai, Maharashtra, India.In Indian market it has share of more than 50%. SPL is also the largest exporter of PS from India, exporting to over 93 countries around the globe.
MRC

(Plastemart) -- Saudi Basic Industries Corp. (SABIC), posted a 35% decline in Q2 profit on lower product pricing and higher raw materials costs, with net income falling to 5.3 bln riyals (USD1.4 bln) from 8.1 bln riyals a year earlier.

The key factor identified for this decline is the continuous slowdown in global economic growth, especially in Europe, China and North America, which negatively impacted the prices of petrochemical products.

Q2 sales fell 5% from a year earlier to 46.5 bln riyals. The reasons for the year-on-year decline are mainly lower petrochemical prices as well as a decrease in Safco profitability due to a plant shutdown.

SABIC (Saudi Basic Industries Corporation) is a diversified manufacturing company, active in chemicals and intermediates, industrial polymers, fertilizers and metals. SABIC is the largest company in the Middle East.

SABIC is currently the second largest global ethylene glycol producer. It is the third largest polyethylene manufacturer, the fourth largest polyolefins manufacturer and the fourth largest polypropylene manufacturer. SABIC is also the world’s largest producer of mono-ethylene glycol, MTBE, granular urea, polyphenylene and polyether imide.
MRC

MOSCOW (MRC) – European PVC makers are going to raise export PVC prices in August on increase in oil quotations and devaluation of euro exchange rate. North-American PVC suppliers reported an increase in export PVC prices for August shipments, report MRC analysts.

This week European PVC makers have claimed a necessity of increase in export prices by EUR50-60/tonne for August deliveries. They explain their decision by a major rise of oil quotations in early July and, consequently, of ethylene, as one of the main feedstocks, as well as by devaluation of euro exchange rate against the dollar. Traditional July-August scheduled outages for maintenance will also put pressure on prices. The deals for July shipments were concluded on average at EUR650-710/tonne, FCA.

North-American PVC suppliers already sold out their July export quotas in June. This week small bargains were made in the range of USD880-900/tonne, CFR St.-Petersburg, and USD880-900/tonne, CIF Odessa. August export price-offers are preliminary voiced in the range of USD940-950/tonne, CFR St.-Petersburg, and USD940-950/tonne, CIF Odessa.

Asian makers keep their export prices at the level of USD900/tonne, FOB. However, this week some producers expressed the need to raise their quotations for August shipments on average by USD50/tonne from July.
MRC