CB&I officially acquires US engineering major Shaw

MOSCOW (MRC) -- CB&I, one of the largest providers of engineering and construction services, has completed its acquisition of another US-based engineering company The Shaw Group, according to Hydrocarbonprocessing.

The deal was first announced in July 2012, and CB&I and Shaw shareholders overwhelmingly approved the transaction in December 2012.

"With the close of the transaction, CB&I is the most complete energy infrastructure focused company in the world. Through our now 50,000 talented employees, we have the capabilities and the expertise to provide our clients with a world of solutions, and a tremendous strategic advantage in responding to the growing demand for energy infrastructure around the globe," said Philip K. Asherman, CEO of CB&I.

Reports have valued the overall deal at approximately USD3 billion. CB&I had said that combining the two companies would create "one of the most complete engineering, procurement, fabrication, construction, maintenance, and associated services companies in the world."

CB&I plans to operate Shaw as a business sector under the brand name CB&I Shaw, the company said, enabling the new company to retain Shaw’s brand equity, particularly in the power industry. Headquarters functions at The Shaw Group's former offices in Baton Rouge, Louisiana, have shifted to The Woodlands, Texas, where CB&I is based.

We remind that, as MRC reported earlier, CB&I had been awarded contracts from Oxychem for the technology license, basic engineering and front-end engineering and design (FEED) services for a proposed new ethane cracker. The cracker is anticipated to have a capacity of approximately 1.2 billion lb/year of ethylene, or just above 500,000 tpa, with operations to start up in 2016. Besides, CB&I had got a contract from PETRONAS for the license and engineering design work for five petrochemicals units and a contract from Huating Coal Group for the license, basic engineering and related services for a polypropylene (PP) plant at the Huating industrial development area in China.
MRC

MOSCOW (MRC) -- Three affiliates of Sipchem (Saudi International Petrochemical Company) have refinanced loan facilities worth 1.04 billion riyals (USD276 mln), which were used to fund their key projects, according to Arab News.

International Acetyl Company, International Vinyl Acetate Company and International Gas Company have converted dollar-denominated loans raised in 2008 to build respective manufacturing plants into new long-term facilities denominated in riyals. Riyad Bank was the lead arranger of the deal, which carried a "competitive variable interest rate" as well as a six-month grace period. The first instalment is due to be repaid in H2-2013, with the loan to be paid off in four years.

We remind that, as MRC wrote previously, in December, 2012, Sipchem launched the construction of its ethylene vinyl acetate (EVA) films project in Hail Industrial City. The SR 120 million project will manufacture 4,000 tpa of EVA films. The project will be financed by the company and other local backers and is expected to be operational by Q3-2013.
MRC

MOSCOW (MRC) -- Technip consortium, including Construcciones Industriales Tapia, has been awarded a contract by Pemex for the revamp of a Mexican refinery, Technip said in its press release.

The contract includes the revamp of a conversion unit of the Ing. Hector R. Lara Sosa refinery, located in Cadereyta, Mexico. Technip's share of the contract is worth approximately USD40 million. The project is scheduled to be completed in the second semester of 2014.

The scope of work includes the detailed engineering, procurement, construction, training, commissioning and start up for the recondition of the combustion gases system of the No. 1 catalytic plant (FCC) of the refinery.

Technip's operating center in Mexico City, Mexico, will execute the project with the support of Construcciones Industriales Tapia for construction work.

We remind that, as MRC informed earlier, ZapSibNeftekhim LLC, an affiliate of JSC Sibur Holding, awarded two front-end engineering and design (FEED) contracts to Technip for polyethylene (PE) plants located in Tobolsk, in the Tyumen region of Russia. The first contract concerns a linear-low/high-density (LDPE and HDPE) gas phase polyethylene plant. Meanwhile, the second deal is for a high-density slurry phase polyethylene plant. Each plant will consist of two parallel production trains with a total capacity of 1.5 million tpa of polyethylene.
MRC

MOSCOW (MRC) -- Shell Chemicals is planning to add a new linear alpha olefin unit to its petrochemical facility in Geismar, Louisiana, US, said Chemicals-technology.

The proposed unit, which will be the fourth unit at the facility, will utilise the company's higher olefin process (SHOP) technology and use ethylene feedstock from other Shell Gulf Coast facilities.

By complementing its three existing linear alpha olefin units, the unit will support the growing demand for polyethylene comonomers, premium lubricants and lubricant additives, surfactants and offshore drilling fluids.
"The proposed unit, which will be the fourth unit at the facility, will utilise the company's higher olefin process."
Linear alpha olefins can also be used in various applications, including household plastics, laundry detergents, motor oils and drilling fluids.

Shell Chemicals higher olefins, alcohols and ethoxylates general manager Rutger Beelaerts was quoted by Chem Week as saying that the company is positioning itself for a strong chemicals future that will help meet the needs of its customers, particularly in North America and Asia.

"We intend to maintain our global leadership position by investing and taking further advantage of one of our existing assets to stay competitive," Beelaerts added.

As MRC wrote earlier, Ukraine chose Shell last May as a partner to develop the Yuzivska field in the east of the country and regional councils there approved the production-sharing deal last week, removing the last hurdle to signature.

Ukraine is said to have Europe's third-largest shale gas reserves at 42 trillion cubic feet (1.2 trillion cubic metres), according to the US Energy Information Administration.

Royal Dutch Shell, commonly known as Shell, is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is also one of the world"s most valuable companies.
MRC

MOSCOW (MRC) -- German plastic closures manufacturer Bericap (Budenheim) has reported a 7.6% increase in turnover to EUR 640m in 2012, said Plasteurope.

The company, which currently employs around 2,950 people, said the rise is a result of higher resin costs and improving sales volumes in 2012. The company produced 64 bn closures last year, up from 60 bn in 2011. During the year, the group's manufacturing facility in Buenos Aires, Argentina – contributed to sales for the first time.

Looking forward, Bericap said it expects further growth in 2013 with a number of factory expansions and the start-up of a second manufacturing site in China.

As MRC wrote earlier, Bericap North America Inc. is investing USD29 million in an expansion that will double the size of its Cowpens plant. The expansion should be complete by early 2014.

Bericap, a subsidiary of Bericap GmbH & Co. of Budenheim, Germany, opened the 90,000-square-foot South Carolina plant in 2007. The plant does secondary operations like printing and assembly. Bericap North America is based in Burlington, Ontario and has a plant in Ontario, Calif. Bericap is a manufacturer of plastic closures with 21 factories in 19 countries across the world. The company offers a wide range of products for beverages, food, motor oil and agricultural industries.

MRC