PTT plans to construct a giant petrochemical complex in Vietnam

(VIR) -- Thailand’s national petroleum company, PTT Public Company Limited (PTT), has recently proposed to build a giant USD28.7 billion oil refinery and petrochemical complex in central Binh Dinh province, Vietnam.

According to the Thai firm, the complex would have total refining capacity of 660,000 barrels per day, or 33.6 million tonnes of crude oil per year. If the project is approved, it would be one of the largest oil refinery and petrochemical complexes in Asia.

"After the initial study, PTT said this project would not be effective if having total refining capacity of 10 million tonnes. Therefore, it proposed to build an oil refinery and petrochemical complex with such a large capacity," said Man Ngoc Ly, director of Binh Dinh Economic Zone Management Authority.

He added that the province had already approved this investment proposal in principle. However, PTT will only get investment project for this project if it is approved by the government, because Binh Dinh is not zoned by the government to build an oil refinery and petrochemical project.

PTT so far has invested in a total integration petrochemical business through its eight subsidiaries, starting from upstream to intermediate and polymers both olefin chain and aromatic chain. PTT Group not only becomes the leader player in the country, but also attracts several world leading companies such as LyondellBasell from the US, Asahi Kasei Chemical Corporation from Japan, and Sime Darby Plantation from Malaysia to be the strategic partners in petrochemical business.

We remind, as MRC informed previously, PetroVietnam, state-run Vietnam Oil and Gas Group, had announced earlier this year that it was going to construct the second oil refinery in the country.

Vietnam is likely to become the world's third biggest rubber producer in the future, thus, surpassing Malaysia, according to a recent report by the Association of Natural Rubber Producing Countries. The association estimated that Vietnam would produce 955,000 tonnes of natural rubber this year, up 17% year-on-year.
MRC

MOSCOW (MRC) -- In January-October, 2012, EPS output in Russia made 70,650 tonnes of the material, report MRC analysts.

In October, 2012, EPS production volume in Russia increased to 10,540 tonnes of the material, which is a record. Russian producers have produced 70,560 tonnes of EPS since the beginning of the year, up 87% year-on-year.

Several factors contributed to the increased production volumes. Angarsk polymer plant resumed operations after an outage for maintenance in September, 2012. In October, 1,360 tonnes of the material were produced in Angarsk.

Plastik (Uzlovaya) also increased its capacity utilization to the maximum level which resulted in production of 860 tonnes of EPS in October.

SIBUR-Khimprom keeps increasing production volumes almost reaching its maximum capacity utilization. In October, 8,320 tonnes of EPS (Alphapor) were manufactured in Perm. More detained information can be seen in MRC ScanPlast.

MRC

(Platts) -- Russian conglomerate Sistema has signed a deal to acquire SG-Trans, the country's biggest independent operator of railcars for transportation of LPG, the company said Tuesday.

Sistema will pay a total cash consideration of Rb22.77 billion (USD730 million) for 100% of SG-Trans, in a deal which the company hopes to close by the end of this week, it said in a statement.

The Russian government previously approved a tender to select a buyer for SG-trans.

Sistema, which owns a majority share in Russia's eighth largest oil producer Bashneft, said that the acquisition is in line with the company's strategy to develop a strong position in the LPG transportation market.

"We believe Sistema is well positioned to benefit from this acquisition due to SG-Trans' leading position in the Russian LPG transportation market and our now combined fleet of 34,500 railcars," Sistema CEO Mikhail Shamolin said in the statement.

The acquisition of SG-Trans is "a significant value creation opportunity, through potential restructuring and optimisation efforts, adjustment to market rates and the exploration of possible strategic options for SG-Trans' gas storage and retail segment," the statement said.

Sistema and Bashneft are now looking at options to combine its rail investments under one management team, the company said.

Liquefied petroleum gas, also called LPG, GPL, LP Gas, liquid petroleum gas or simply propane or butane, is a flammable mixture of hydrocarbon gases used as a fuel in heating appliances and vehicles.

MRC

(Platts) -- China National Offshore Oil Corp. and Nexen have withdrawn and resubmitted their application for US approval on their USD15.1 billion proposed deal, Nexen said late Tuesday.

"Discussions with CFIUS continue, with a view to completing the CFIUS review process as expeditiously as possible," the company added.

Nexen said the closing of the deal remains subject to the receipt of applicable government and regulatory approvals by the relevant authorities in Canada, the US, the EU and China, and the satisfaction or waiver of the other customary closing conditions.

CNOOC had said September 6 that it had filed its application with the CFIUS seeking approval for the deal. In a note issued Wednesday Credit Suisse said the resubmission is "an unusual event" but indicates the companies are continuing to "seek closure in the US".

"It is surprising to have to re-work the US approval...the deal attracted very little media [and] public political interest in the US," Credit Suisse said, adding that Nexen has 18,000 b/d oil equivalent of current US production, which is primarily gas, while its oil output represents less than 0.1% of the US' total oil production this year.

The CFIUS review program is an initial 30-day, potentially followed by a further 45-day and a final 15-day Presidential review, if required, said Credit Suisse.

In Canada a deadline for the review of CNOOC's proposed acquisition has been set at December 11 as Ottawa looks for ways to extract unbreakable job and investment commitments from CNOOC. That was the second time the review had been extended, from initial deadlines of October 12 and November 12, for a decision on whether the deal will provide a net economic benefit for Canada.

The proposed takeover has been approved by Nexen shareholders and the Canadian courts.

CNOOC has repeatedly said it expects to receive all regulatory approvals by year-end.
MRC

(hydracarbonprocessing) -- Petrobras has enlisted Citigroup to shop its 100,000 bpd Houston-area refinery, sources said, as the Brazilian state-run oil company continues to shed assets to help fund offshore drilling back home. A sale of the 100,000-barrel-a-day refinery will likely result in a loss for the company.

Petrobras acquired a 50% stake in the refinery in 2006, paying a subsidiary of Belgian commodities trader Transcor Astra Group S.A. about USD360 million.

Then, after a lengthy legal battle with its partner, Petrobras acquired the 50% it didn't already own in July. Petrobras paid USD820.5 million, with USD466 million set as the value of the property and the remainder covering legal fees and interest expenses.

Located it in Pasadena, Texas, just south of Houston, it is well positioned to receive the growing crude supplies coming out of shale formations in south and west Texas, Mr. Good said. And its location on the Houston Ship Channel connects it to important export markets, he said.

More than half of the Pasadena refinery's output is gasoline, a fuel for which demand is rising in Latin American countries.

Brazilian state-led oil company Petrobras announced its third-quarter profit had fallen as refining unit losses rose, an unexpected result after being granted its first wholesale fuel-price increase in six years in June.

MRC