Ukraine predicts new semisub tender

MOSCOW (MRC) -- Ukraine will hold a new tender for two semisubmersible rigs after a USD1.23 bilion deal with construction giant Keppel was called off last week, according to Upstreamonline.

The Singapore firm disclosed last week that the contract with Naftohaz Ukrainy would not go forward as "certain conditions in the timeline set were not met," according to Keppel.

Energy Minister Eduard Stavytsky said the company was not able to line up financing in time, accordint to a Reuters report.

"We need drilling rigs and we will soon hold a new tender," Stavytsky said according to the news wire.

Naftohaz did not immediately respond to a request from Upstream to confirm the report.

One source suggested to Upstream this week that discussions were still continuing for the contract though the previously negotiated agreement was off the table.

The Ukraine company previously said it intended a longterm programme to drill at least 200 development wells in the Black Sea at water depths between 120 metres and 1000 metres.

Four companies submitted bids in the tender, including Latvia’s Rigas Kugu Buvetava and two little-known companies headquartered in Belize.

Naftohaz was reportedly willing to pay up to USD1.4 billion for the units.

But Upstream reported some sources as doubtful that company would be able to muster the funds given its debt and a difficult road to finding large oil reserves in the Black Sea.

As MRC wrote earlier, Russian gas giant Gazprom and Ukrainian national oil and gas company Naftogaz previously started setting up a joint venture to develop the Black Sea shelf.
MRC

MOSCOW (MRC) -- In February, Russian converters of polymers increased production of the finished goods. Last month, the increase in production made on average 25%, according to MRC analysts.

After the unsuccessful January due to the long New Year holidays, Russian plants raised production of the finished polymer products in February. Last month, the increase in production ranged from 12% to 31% depending on the consumption sector.

Traditionally, the largest increase in production accounted for the construction sector, namely, the production of plastic windows and window sills. According to Rosstat, in February 2013, the total output of these products made 1,3 million square metres, up 31% from January. In January-February, the total production volumes of plastic windows and window sills amounted to 2,3 million square metres, up 24% year-on-year.

In January-February 2013, the output of doors and plastic boxes reached 91,600 tonnes, an increase compared to the same period last year made only 2%.

The production of plastic pipes and fittings rose to 42,000 tonnes in February, up 12% from January. Over the first two months of this year, the total output of plastic pipes and fittings went up to 79,700 tonnes, up 9% year-on-year.

Last month, the output of plates, polymer nonporous and unreinforced films made about 65,000 tonnes, up 27% from January. In January-February 2013, the total volumes of production of these products amounted to 112,000 tonnes, up 7% year-on-year.
MRC

MOSCOW (MRC) -- Imports of PET to Russia grew by 78% compared to January 2013, according to MRC ScanPlast.

Following the preparation for the season, in February, Russian companies increased their import purchases of the material for the production of PET preforms. Also the market received the volumes of the material purchased last December in anticipation of the growth of granulate quotations in Asia. Last month, total imports of PET to Russia amounted to 16,000 tonnes, up 78% from the previous month. In comparison with the same period last year, imports of PET decreased by 1,200 tonnes.

The share of PET of Chinese brands in the structure of supplies made about 52%. Totally over the past month, Russian consumers of PET granulate received about 8,200 tonnes of Chinese PET. At the same time Korean imports increased significantly. If compared to the previous month, supplies of Korean PET made more than 5,600 tonnes, which is equivalent to 35% increase in January.

The volumes of export deliveries of Russian bottle PET remained relatively stable compared to January and made about 1,400 tonnes in February. Meantime, if compared to sales in the foreign markets last year, exports of Russian PET fell by 75% in February.

MRC

MOSCOW (MRC) -- Pre-bankruptcy settlement proceedings opened for the Dioki petrochemical company on Friday and creditors were given a month to report their claims so that they could be determined at the first hearing set for April 23, said Dalje.

Dioki filed a request for pre-bankruptcy settlement in late December, saying that its liabilities were slightly in excess of a billion kuna. In November, Dina Petrokemija, a member of the Dioki Group, filed for pre-bankruptcy settlement, and the first hearing has been scheduled for April 4.

On March 11, the Crodux Plin gas company put forward a proposal to the Dioki management board for its possible participation in the financial and operational restructuring of Dioki and Dina Petrokemija through pre-bankruptcy settlements and acquisition of a majority stake in the two companies (see MRC news).


MRC

MOSCOW (MRC) --Toyo Engineering Corporation (TOYO, President and CEO Katsumoto Ishibashi) has been awarded a contract to construct a synthetic resin (Ethylene-vinyl alcohol copolymer, EVOH) production plant with a capacity of 15,000 tons per year in La Porte, Houston, Texas, USA, planned by the Nippon Synthetic Chemical Industry Co., Ltd, said Toyo in its statement.

Construction of the new plant is scheduled to begin in the summer of 2013 and to be completed at the end of 2014.
The project will add the third production line to the two existing lines (23,000 t/y in total) to respond to increasing worldwide demand for EVOH for food packaging applications.

Toyo's experience in collaborating with Japanese firms moving into foreign markets including the United States is highly valued and resulted in the award of this contract. Toyo will continue to strive to win more projects in the United States where investment in shale-gas-related projects is increasing.

As MRC wrote earlier, Toyo Engineering was awarded a contract from Russia's TAIF-NK to provide services for detailed engineering and procurement on the oil refinery modernization project in Nizhnekamsk. The project is scheduled to be completed in 2016. The upgraded complex will convert the following oil refinery heavy residues: 2,700,000 tpy of vacuum residue and 1 million tpy of vacuum gas oil, with a high ratio of conversion to valuable oil products.

Toyo Engineering Corporation is an engineering, procurement and construction company serving mainly the hydrocarbons (oil and natural gas) and petrochemical sectors worldwide.

MRC