MOSCOW (MRC) -- The Russian Agency for export credit and investment insurance (EXIAR) and BIAXPLEN, SIBUR's subsidiary, have entered into a comprehensive export credit insurance agreement, reported SIBUR on its site.
This is SIBUR's the first experience in insuring foreign receivables.
Under the agreement, the EXIAR shall provide insurance of biaxially-oriented polypropylene (BOPP) film supplies for around RUB 2.2bn against the risk of default of European petrochemical buyers. The insurance coverage is valid for one year.
Comprehensive export credit insurance is intended to protect Russian companies against the risk of default of foreign buyers due to commercial or political reasons. The insurance covers supplies of goods under a deferred payment scheme.
We remind that, as MRC wrote previously, SIBUR has recently sold its 100% stake in OJSC Plastik (Uzlovaya, Tula Region, Russia) to the group of private investors. The deal value totalled RUB 575 million. Production of geosynthetics (geogrids and nonwoven geotextiles), spinned off as OOO Plastik-Geosintetika (a joint venture between SIBUR and Leader Innovations Closed-End Venture Capital Fund) in 2010, was not included in the transaction and continues to operate as part of SIBUR Group.
SIBUR is a uniquely positioned vertically integrated gas processing and petrochemicals company. SIBUR owns and operates Russia’s largest gas processing business in terms of associated petroleum gas processing volumes, and is a leader in the Russian petrochemicals industry.
MRC
MOSCOW (MRC) -- Rabigh Refining and Petrochemical (Petro Rabigh) released financial statements for the fiscal period that ended on December 31, 2013, said the producer in its press release.
Q4 net profit reached SAR 1,240 million, soaring 1,720.85% compared with SAR 68.1 million in the same period of last year. FY13 net earnings also fell 26.53% year-over-year from SAR 488.9 million to SAR 359.2 million.
The increase in net profit of Q4, 2013 versus Q4, 2012 is due to the new commercial arrangements with the Founding Shareholders and the recognition of RAWEC settlement payment. On the other hand, lower refining margin and decreased petrochemical sales quantity due to the utilities supplier blackout event in September had a negative impact to current quarter performance.
The decrease in net profit is due to the deteriorated refining margin and low operation levels caused by the utilities supplier blackout events, nonetheless, the benefit of the new commercial arrangements with Founding Shareholders of SR 1.2 billion for this year, and the recognition of RAWEC settlement payment of SR 750 million, has largely helped in minimizing this negative impact.
As MRC reported previously, Petro Rabigh had signed an agreement with Tasnee and Saudi Advanced Industries (SAIC) for the supply of propylene oxide to the joint venture for the production of polyether polyol. The plant is located in Rabiga, in the west of Saudi Arabia on the Red Sea. The production launch is scheduled for the fourth quarter of 2013.
PetroRabigh, a joint venture between Saudi Aramco and Japan's Sumitomo Chemical, has an annual output capacity of 18 million tonsne of refined products and 2.4 million tonnes of petrochemicals.
MRC
MOSCOW (MRC) -- Honeywell's UOP announced Tuesday that two Chinese petrochemical producers have selected UOP process technologies to help meet growing demand for high-value petrochemicals in China, said Hydrocarbonprocessing.
Shandong Huachao Chemical Co. will use the UOP C4 Oleflex process to produce isobutylene, a key ingredient for fuels and synthetic rubber. In addition, Zibo Qixiang Tengda Chemical Co. will use the UOP Butamer process to transform normal butane to isobutane and UOP's C3/C4 Oleflex process to convert isobutane to isobutylene and propane to propylene for the production of plastics.
Both companies are located in Shandong Province on China's East Coast. The Oleflex projects represent UOP's 16th and 17th announced licenses for the Oleflex technology since the beginning of 2011, as demand for propylene and isobutylene grows in the region.
The Shandong Huachao project will be the sixth C4 Oleflex unit in China, and the Zibo Qixiang Tengda project is the third combined C3/C4 Oleflex license UOP has been awarded.
The new units are expected to start up in 2016. The Shandong Huachao facility will process 200,000 metric tons of isobutane. and the Zibo Qixiang Tengda facility will process 400,000 metric tons of propane and butane feedstocks.
In addition to the technology licensing, UOP will provide the engineering design, catalysts, adsorbents, equipment, staff training and technical service for both projects.
As MRC informed before, Honeywell's UOP granted the third technology license for its breakthrough methanol-to-olefins (MTO) technology to China's Shandong Yangmei Hengtong Chemicals. The Chinese company will use Honeywell UOP's advanced MTO process to convert methanol from gasified coal into ethylene and propylene.
MRC