Page 18 - NorthAmOil Week 37

NorthAmOil NEWS IN BRIEF NorthAmOil

of $750mn in the largest polypropylene
production line in the Americas, and the first
new polypropylene plant in North America
since 2008, reflects our enduring commitment
to meeting the needs of our clients today and
for the long-term. With the upcoming launch
of our new Global Export Hub in Charleston,
South Carolina, we’ll significantly increase
our ability to serve clients throughout North
America, South America, Europe, and Asia
with our newly expanded US production
capability. I would also like to personally
thank the entire Braskem team, as well
as our design and construction partners,
Lonestar Resources US principal amount outstanding under its Notes, on delivering this milestone project amid
and holders of 100% of its preferred equity
a challenging COVID-19 environment.
announces restructuring interests. Our team member safety is always our top
priority and their exceptional performance
LONESTAR RESOURCES US, September 15,
support agreement 2020 throughout the project is a true testament to
their commitment to professional excellence.”
Lonestar Resources US today announced that BRASKEM, September 10, 2020
it and certain of its direct and indirect wholly- DOWNSTREAM
owned domestic subsidiaries have entered
into a restructuring support agreement with Braskem successfully SERVICES
its largest stakeholders that will eliminate
approximately $390mn in aggregate debt launches commercial Milestone awarded permit
obligations and preferred equity interests.
Under the terms of the support agreement, production at its new for New Mexico slurry
approximately $250mn of the company’s
11.250% Senior Notes due 2023 will be world class polypropylene injection oilfield waste
converted to equity and accrued interest
thereon will be extinguished. In addition, production line in La Porte, disposal facility
lenders under the Company’s revolving
credit facility who agree to accept the plan Texas Milestone Environmental Services, the
(as defined below) will, among other things, largest independent provider of oilfield waste
receive their pro rata share of warrants to Braskem, the largest polyolefins producer disposal services in the US, announced
purchase up to 10% of the new equity interests in the Americas and leading producer of today that the New Mexico Oil Conservation
in the company (subject to dilution only by biopolymers in the world, today announces Division (NMOCD) has approved the
the issuance of new equity interests under a the successful launch of commercial company’s permit for an oilfield waste slurry
management incentive plan (MIP equity), production at its newest, world-class injection facility near Jal, in Lea County. The
revolving loans under the exit revolving credit polypropylene production line located in La facility, the first of its kind permitted in New
facility, and term loans under the second-out Porte, Texas. Mexico, required multiple permits from the
exit term facility. Holders of preferred equity Braskem’s new line has a production NMOCD, including a permit to inject oilfield
interests in the company will receive their pro capacity of over 450 kilotons (kt) or 1bn waste and a solid waste management permit.
rata share of 3% of the new equity interests in pounds per year and has the capability to These permits mark Milestone’s first move
the company (subject to dilution by the MIP produce the entire polypropylene portfolio into the New Mexico side of the Permian
equity and the new warrants) and holders including a broad range of products including Basin, the heart of the most prolific oil and gas
of existing Class A common stock in the homopolymer, impact copolymer and random production basin in the United States.
company will receive their pro rata share of copolymers. Construction began October Milestone’s proprietary slurry injection
1% of the new equity interests in the company 2017 with the final phase of mechanical process is both an economically efficient
(subject to dilution by the MIP equity and construction completed in June 2020. The and environmentally superior method for
new warrants). launch of commercial production follows the oilfield waste disposal. Using this process,
Under the terms of the support agreement, successful completion of the commissioning Milestone captures drilling, completion, and
the debtors would effectuate the proposed process as well as the achievement of production waste and reinjects it back into the
transactions through a prepackaged plan Braskem’s high product quality assurance earth through a network of facilities located
of reorganisation under Chapter 11 of the protocols. throughout the Permian Basin and the Eagle
US Bankruptcy Code. The company has Mark Nikolich, Braskem America CEO, Ford Shale. The reinjection of hydrocarbon-
already obtained support for the proposed states: “The launch of commercial production contaminated waste is a form of permanent
transactions from lenders holding 100% of at our new world class polypropylene carbon sequestration, and thus materially
the aggregate principal amount outstanding production line in La Porte clearly affirms reduces the carbon footprint of oil and gas
under its revolving credit facility, noteholders Braskem’s position as the North American operations. In addition to reducing carbon
holding approximately 67.1% of the aggregate polypropylene market leader. Our investment footprint, Milestone’s disposal methods enable

P18 www. NEWSBASE .com Week 37 17•September•2020