Friday, February 22, 2019

Oil Refiner News

Top Citgo Executives Removed as PDVSA Chaos Continues

File Image: the idled Aruba refinery (AdobeStock / © Hans

Citgo Petroleum Corp has removed at least three top executives close to Venezuelan President Nicolas Maduro, people familiar with the matter said on Monday, in a move to cement management control under a new board of directors.The U.S. refining arm of Venezuelan state-run oil company PDVSA has been thrust in recent weeks into the center of a political battle between an opposition leader and self-declared president backed by many Western nations, including the United States…

Chevron in LNG Supply Deal with GS Caltex

Image: Chevron Corporation

American multinational energy corporation Chevron signed a new sales and purchase agreement with South Korean oil refiner GS Caltex Corporation for the delivery of liquefied natural gas (LNG) to South Korea.As a joint venture between Chevron and GS Energy, GS Caltex has signed a long-term agreement and will begin receiving LNG in October 2019, said a press release from the U.S. oil and gas major.Chevron’s President of Global Gas, Hugh Connett stated the…

Greece Approves Two Consortia for Hellenic Petroleum Bids

Greece on Monday approved two consortia to submit final bids for a 50.1 percent stake in its biggest oil refiner Hellenic Petroleum, its privatisations agency said.The consortia are: Glencore Energy with a unit of U.S.-based Carlyle Group; and Vitol Holding with Algeria-based Sonatrach.Glencore and Vitol had already been shortlisted last summer.(Reuters, Reporting by Angeliki Koutantou Editing by Karolina Tagaris)

Addax Petroleum Extends Yinson’s Adoon FPSO Deal

FPSO Adoon - Nigeria. Image: Yinson

Nigeria-focused oil company Addax has extended the charter for the Yinson-owned FPSO Adoon for another three months, pending discussion for a potential longer-term deal."Unless otherwise expressly defined in this announcement, terms and expressions used in this announcement shall have the same meaning as ascribed to them in our earlier announcements made in October 2018," the Malaysian-based Floating, Production, Storage and Offloading (FPSO & FSO) service providers said in a stock exchange announcement.The original contract for FPSO Adoon was awarded on Oct 17…

Hellenic Petroleum Q3 Core Profit up 15%

Hellenic Petroleum, Greece's biggest oil refiner, reported a 15 percent rise in third-quarter core profit on Thursday with stronger sales volumes more than offsetting lower refining margins.Adjusted for oil inventory holdings, earnings before interest, tax, depreciation and amortisation (EBITDA) came in at 237 million euros ($271.06 million), up from 206 million euros in the same period a year earlier.The figure beat analysts average forecast of 213.4 million euros in a recent Reuters poll. (Reuters, Reporting by Angeliki Koutantou)

Marathon Petroleum Profits Miss

(Photo: Marathon Petroleum)

U.S. oil refiner Marathon Petroleum's third-quarter profit missed Wall Street estimates on Thursday, as higher costs offset gains from cheaper crude.Marathon said total costs climbed 22 percent to $21.73 billion in the quarter ended September, partly due to some pension settlement charges.Marathon and other refiners process heavy crude, sourced from countries including Canada and Argentina, to make petroleum and fuel.But heavy crude prices have been driven lower by capacity constraints in Canadian pipelines and economic instability in Argentina.Marathon…

How Refiners Plan to Grapple With Fuel Oil Output After 2020

© christian42 / Adobe Stock

High-sulphur fuel oil (HSFO), essentially the leftovers of an oil refiner's output, will still flow from refineries around the world even after new rules start up in 2020 curtailing its use in the global shipping fleet, a Reuters survey showed.Sixty percent of the 33 refineries contacted by Reuters in a global survey will still produce HSFO in 2020 although the supply will tighten as 70 percent of these refiners plan to reduce their output.Starting that year…

Hellenic Petroleum Q2 Core Profit Drops 18%

Photo: Hellenic Petroleum

Hellenic Petroleum, Greece's biggest oil refiner, reported on Thursday a 18 percent drop in second-quarter core profit, hurt by lower refining margins and a stronger euro.The refiner said earnings before interest, tax, depreciation and amortisation (EBITDA), adjusted for oil inventory holdings, came in at 187 million euros ($218.04 million) in April to June, down from 228 million euros in the same period a year earlier.Reporting by Angeliki Koutantou

Hellenic Petroleum Workers Battling Selloff Block Suitors from Refineries

Photo: Hellenic Petroleum

Workers at Hellenic Petroleum on Monday physically prevented suitors eyeing a majority stake in Greece's biggest oil refiner from entering two of its sites in protest at plans to privatise the utility, a union spokesman said.While privatisations have been a key part of successive bailout agreements Greece has struck since 2010, they have been met with strong political resistance.Greece still has a series of deals to complete under the terms of its latest bailout which ended last week…

Talks Between Total, North Sea Oil Workers Collapse, Strikes to Go Ahead

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Talks between French oil refiner Total and workers on three of its North Sea oil and gas platforms broke down on Thursday, meaning that a series of planned strikes over working rotas will go ahead, UK union Unite said in a statement."The talks with Total have broken down today (regarding) the position on the three platforms," Unite said."As a result, the scheduled industrial action which we have previously released remains in place. Unite will be consulting…

Greece Shortlists Glencore, Vitol in Hellenic Petroleum Majority Stake Sale

Greece has shortlisted Anglo-Swiss Glencore and Swiss Vitol to submit a binding bid for a majority stake in the country's biggest oil refiner Hellenic Petroleum, its privatisation agency said on Wednesday.Athens last month received five expressions of interest for a 50.1 percent stake that Greece and Paneuropean Oil and Industrial Holdings jointly hold in Hellenic in one of the biggest asset sales under the country's three international bailouts since 2010.Along with Glencore Energy UK and Vitol Holding B.V.…

Glencore, Vitol Shortlisted in Hellenic Stake Sale

Anglo-Swiss Glencore Energy and Swiss Vitol will be qualified to submit a binding bid for a majority stake in Greece's biggest oil refiner Hellenic Petroleum, sources close to the process said on Tuesday. Athens last month received five expressions of interest for a 50.1 percent holding in Hellenic in one of the biggest asset sales under the country's three international bailouts since 2010. Along with Glencore Energy UK and Vitol Holding B.V., initial interest was also submitted by Alrai Group Holdings Limited…

Iran's Oil Customers in Europe Might Reduce Imports

© compuinfoto / Adobe Stock

European oil companies are not ruling out reducing Iranian oil imports after the threat of new U.S. sanctions, with some expecting banking issues to hinder trade, but there was no rush to immediately cut volumes.U.S. President Donald Trump said on Tuesday the United States was exiting an international nuclear deal with Iran and would impose new sanctions that seek to reduce oil exports from OPEC's third-largest producer.But as of Friday, companies in Europe said they were still taking Iranian oil.

Finland to Reduce Stake in Oil Refiner Neste

Finland on Tuesday said it would sell 12.8 million shares in oil refiner Neste, representing about 5 percent of the company.After completion of the sale, Finland's holding in Neste will fall to 44.7 percent from 49.7 percent, the Finnish state said in a statement.The oil refiner's shares will be offered to Finnish and international institutional investors via an accelerated bookbuild, the statement said.The Finnish state said it would declare results of the share sale around June 13.Earlier in the year…

Phillips 66 to Expand Texas Natural Gas Liquids Project

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U.S. oil refiner Phillips 66 said on Wednesday it planned to spend up to $1.5 billion on the expansion of its natural gas liquids project in Sweeny, Texas.The expansion includes the construction of two natural gas liquids fractionators, with a capacity of 150,000 barrel per day (bpd) each, the company said.DCP Midstream LP said it had an option to buy up to a 30 percent stake in the fractionators.

China's Independent Refiners Gear up for Ethanol Push

File Image (CREDIT: AdobeStock / (c) Jason Lee)

Dongming plans to import ethanol, may produce biofuel; China set 2020 target for nationwide 10 pct biofuel use. China's top independent oil refiner is buying ethanol and two others are seeking government approval to blend the biofuel into their gasoline ahead of the country's 2020 deadline to add it to the nation's fuel supply, several sources told Reuters. China mandated last September that gasoline supplies should contain 10 percent ethanol, an alcohol typically produced from corn, in a blend known as E10.

Hellenic Petroleum Appoints New Chief Executive

Hellenic Petroleum Chairman Efstathios Tsotsoros has taken on the additional position of chief executive, the company said in a bourse filing. Tsotsoros' appointment was proposed by the Greek state last week and approved at a board meeting on Tuesday. Grigoris Stergioulis steps down after three years at the helm. Greece is selling a stake in Hellenic, its biggest oil refiner, under its latest bailout programme. Its major shareholders, Greece and Paneuropean Oil and Industrial Holdings…

Greece Launches Tender to Shed Hellenic Petroleum Stake

File Image (CREDIT: AdobeStock / © Sharrif Che'Lah)

Greece on Wednesday launched an international tender to sell a majority stake in Hellenic Petroleum as part of its third international bailout. Greece's privatisation agency said it will sell no less than 50.1 percent in the country's biggest oil refiner and interested investors must submit expressions of interest by May 18. Major shareholders Greece and Paneuropean Oil and Industrial Holding agreed this month to divest at least 50.1 percent of the company. Hellenic is Europe's third biggest oil refiner based on its market value of 2.6 billion euros.

Neste Beats Market Expectations, Shares Soar

File Image (CREDIT: AdobeStock / © scanrail)

Finnish oil refiner and biofuel producer Neste posted its highest ever quarterly result on Thursday, helped by a U.S. tax break and profitable biofuel production. Shares in the company jumped more than 12 percent after the first-quarter report showed core operating profit almost doubled from a year ago to 401 million euros ($488 million), surpassing analysts' average forecast of 370 million euros. "Renewable Products was able to exceed the previous year's performance as a result of successful sales allocation and feedstock optimization…

Refiner Phillips 66 Reports Q1 Profit Dip

U.S. oil refiner Phillips 66 reported a 2 percent fall in first-quarter profit on Friday, hurt by higher costs.   The company's consolidated earnings fell to $524 million in the first quarter from $535 million a year earlier.   Adjusting for number of shares outstanding the company earned $1.07 per share, from $1.02 per share a year earlier.   Adjusting for some items, Phillips 66 earned $512 million from $294 million.   Reporting by Taenaz Shakir