Page 14 - DMEA Week 17 2020

DMEA
NEWS IN BRIEF
DMEA
UAE player buys Nigerian lubricants business
The UAE’s GP Global has reported acquiring the lubricants asset of Nigeria’s Grand Petroleum, in order to expand its footprint in West Africa.
The deal covers a “state-of-the-art” 50,000 tonne per year blending plant in Lagos, which includes storage tanks with a capacity of 6,000 kilolitres.
“Nigeria is one of the core markets for our lubricants and base oil business with
a significant opportunities now opening up to expand our presence in Africa,” GP Global’s head of lubricants and base oils, Sudip Shyam, said in a statement in mid- April. “Through local manufacturing and a strong distribution network in Nigeria, the acquisition will position us as one of the fastest growing global lubricants and base oil businesses.”
Borealis acquires chemicals plant in Texas
Borealis and Nova Chemicals Corporation announced that Borealis has completed the acquisition of NOVA Chemicals’ 50% ownership interest in Novealis Holdings.
Formed in 2018, Novealis is the joint venture between affiliates of Borealis and NOVA Chemicals, which subsequently formed a 50/50 joint venture with an affiliate of Total to launch Bayport Polymers in Houston, Texas, USA.
Acquiring NOVA Chemicals’ share in Novealis will allow us to further increase our footprint in North America, enabling us to better serve our customers in this region with our value-add Borstar technology and its related products.“This acquisition supports our global growth ambitions,” commented Alfred Stern, Borealis CEO. “Acquiring NOVA Chemicals’ share in Novealis will allow us
to further increase our footprint in North America, enabling us to better serve our customers in this region with our value-add Borstar technology and its related products.”.
SABIC annual general
meeting approves $1.76bn
in dividends
SABIC’s ordinary annual general meeting in Riyadh on April 21 endorsed all the items on its agenda by vote and approved the board of directors’ and auditors’ reports, as well as the final accounts for the financial year ending 31 December 2019. The meeting was held virtually and through email interactions in compliance with health advisories related to
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the ongoing Covid-19 pandemic, with real- time participation by shareholders.
Based on the board’s recommendation, the meeting approved $1.76bn cash dividends for the second half of 2019 at $0.59 per
share, representing 22% of the nominal share value. The board of directors had previously approved $1.76bn cash dividends for the first half of 2019 at $0.59 per share, representing 22% of the nominal share value.
Lebanon-based Sonatrach unit mired in corruption
A court in Lebanon has ordered the arrest of 17 people, including the Chief of Sonatrach Petroleum (SPC), a subsidiary of Algeria’s state-run oil company, on corruption and supply of adulterated fuel charges.
Judge Ghada Aoun, prosecutor at Mont- Liban court of appeal, ordered the arrest after state-run Electricity of Lebanon (EDL) lodged early this month a complaint against SPC for trying to supply the energy company with adulterated fuel.
The shipment of fuel stemming from an Algeria-controlled refinery in Sicilia arrived in Lebanon last month for EDL. Tests of
the samples from the shipment vetted by an Italian laboratory validated the commodity but counter tests conducted by Karadeniz, a Turkish operator which is also beneficiary of the fuel, revealed that the fuel shipment was adulterated.
Investigations launched into the case revealed that SPC, regular EDL supplier, has been providing its client with tampered fuel since 2005 and concealed the suppliers, reports say.
The investigations also indicated that kickbacks worth sizeable amount of money have been paid to agents through trading companies.
Sonatrach in a statement issued on Sunday denied any wrongdoing arguing that no official of its subsidiary has been arrested
and added that the alleged SPC Chief was an independent shipping agent working with Lebanon-based Algerian company.
SOCAR sets up new petchem venture in Turkey
Azerbaijan’s state oil Company SOCAR wills set up a petrochemical enterprise in Turkey, Turkish media reported on April 30.
The enterprise will take a form of a joint venture with BP and is expected to be commissioned before the end of 2023.
SOCAR and BP have already applied to the Turkish antimonopoly authorities for the permission to establish the joint enterprise, which will be called Mercury complex.
The construction of the new petrochemical
complex is expected to enable Turkey to cover the current account deficit by $6bn annually.
Earlier it was reported that on December 20 2018 SOCAR and BP signed contractual principles for evaluation of plans for creation a world-class petrochemical complex in Turkey and establishment of a joint venture to manage it.
Construction of the complex was planned to begin during the current year in order to put the enterprise into operation in 2023- 2025. However, due to low oil prices and
to the COVID-19 pandemic, the project implementation has been postponed until 2021.
“There have been some delays in the date of FDI. The oil price corridor of $20-30 per barrel had a strong impact on both us and our partners. In this regard, the final investment decision on the Mercury project, scheduled for late 2020, is now postponed to the 4th quarter of next year,” CEO of SOCAR Turkey Zaur Gahramanov. has said.
The Mercury complex will be built near the Petkim petrochemical complex and
the STAR refinery in Aliaga region. The enterprise will produce 1.25mn tonnes of purified terephthalic acid (PTA), 840,000 tonnes of paraxylene (PX), 340,000 tonnes of benzene. PTA is the main raw material in the production of polyester from which beverage and food containers, packaging materials, photo and film and other consumer and industrial goods are derived.
Liberia cuts fuel prices
Liberia’s Ministry of Commerce, has in consultation with the management at the Liberia Petroleum Refinery (LPRC) reached a decision reducing prices for gas (PMS) and Fuel (AGO), with immediate effect.
According to a press release from the Ministry of Commerce, the price of gasoline has been reduced by $0.35 while the price of fuel has been reduced by $0.30, respectively.
As a result of the reductions announced Sunday, 19 April by the Ministry in consultation with LPRC, the wholesale price for gas is now $2.77, while retail pump price for gas has dropped to $2.95 or its equivalent of LD$580.
Additionally, the Ministry in consultation with LPRC, has reduced the wholesale price for fuel to $3.32, and further reduced the retail pump price for fuel to $3.50 or its equivalent of LR$690.
The Ministry of Commerce says it uses
the Central Bank of Liberia (CBL) exchange rate of $1 to LD$197 to set the various prices announced in the release.
The ministry indicates that it is closely monitoring the new price circular to ensure that importers do not undercut fellow competitors on the market.It concludes that the new price circular has already taken effect.
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Week 17 30•April•2020