Home » Companies You are browsing entries filed in “Companies”

Europe Distillates-Firm but seen weaker

Tue Apr 24, 2012 12:29pm EDT

Article source: http://www.reuters.com/article/2012/04/24/markets-europe-distillates-idUSL5E8FOF2120120424

April 24th, 2012 | Posted in Companies | Read More »

Coryton refinery fate to be decided in May


LONDON |
Tue Apr 24, 2012 1:53pm BST

LONDON (Reuters) – The future of Petroplus’ UK refinery Coryton, which employs around 900 people, will be decided by the middle of May, when the current deal supplying it with crude runs out, administrator PwC said on Tuesday.

Work on a potential sale or restructuring of the refinery’s debt is underway with a view to reaching an agreement before the deal expires in the middle of May, or the plant will close.

“We’ll do a deal or shut Coryton when the current arrangement finishes,” Steven Pearson, partner and joint administrator of Petroplus Refining Marketing Limited (PRML) told Reuters.

The plant received a three-month lifeline in February from a consortium of Morgan Stanley, private equity firm KKR and the co-founder of the stricken Petroplus Marcel Van Poecke.

But with capital expenditure needs of around $1 billion and upcoming maintenance costing $150 million due in September, the conditions for securing a deal remain challenging.

“One of the big factors here is that with the price of oil being where it is at the moment, the cost of funding the working capital is so enormous in the short term, that the economics are difficult,” Pearson said. “But that’s true for any refiners out there.”

Brent crude futures rose to highs not seen since 2008 of $128.40 a barrel in early March, further squeezing refining profits.

Swiss-based refiner Petroplus filed for insolvency in January after defaulting on $1.75 billion of debt. Its shares fell through 2011 as refining margins were squeezed and questions surfaced about its ability to raise debt to cover costs.

The tough operating environment has taken its toll across the European industry, with tight credit conditions making deal-making difficult.

“We need committed investors to invest in the turnaround programme, there’s no point in asking if the sun will come out tomorrow, we have to deal with it now,” Pearson said.

With a throughput capacity of 175,000 barrels per day (bpd)and a high Nelson complexity – meaning it can produce a larger proportion of high grade fuels – Coryton is the most prized asset of the Petroplus stable.

JOBS ON THE LINE

The plant is a big employer in the Essex region, east of London, with around 900 jobs on the line.

Richard Howitt, local member of the European Parliament, said it was important that everything possible was done to ensure the plant remains open.

“It’s worrying that there is talk of a collapse in the rescue deal, this should drive a deep determination to achieve a successful buyout,” he said.

Adding to the tough economic climate, Pearson said the difficulties and higher costs associated with running a company in administration meant a deal needed to be done soon.

“It’s costlier and more difficult to get supplies, and the staff become unsettled because of the uncertainty when a company is administration, so it’s important that we get the deal done. May will be a big month for the company.”

A pool of no more than ten candidates remain involved in the talks for a potential sale, although Pearson declined to comment on specifics.

“We are still working with all parties to try to find a deal, I suspect it will go up until midnight until the day before the deal expires,” he said.

The closure of the refinery would lead to further upward pressure on already elevated petrol and diesel prices, squeezing hard-pressed British consumers and businesses.

Suitors are said to include major trading houses, sector specialists like Gary Klesch and private equity investors.

In the United States, Sunoco has entered into exclusive talks with private equity investor Carlyle to form a potential joint venture to run the biggest refinery on the East Coast, the 335,000 barrels per day (bpd) plant in Philadelphia.

(Editing by Mark Potter)

Article source: http://uk.reuters.com/article/2012/04/24/uk-interview-pwc-coryton-idUKBRE83N0N120120424

April 24th, 2012 | Posted in Companies | Read More »

Angola LNG to start exports June

Comment on this story


http://sxc.hu/

Angola LNG is to start regular exports of liquefied natural gas in late June after shipping tests next month and will target non-US buyers in Europe and Asia where prices are higher, oil minister Jose Botelho de Vasconcelos said on Tuesday.

The 5.2 million tonnes per annum Angola LNG project is led by Angola’s state-owned oil company, Sonangol, which has a 22.8 percent stake and Chevron, which holds 36.4 percent. Eni , Total and BP each hold a stake of 13.6 percent.

“The project is practically in its final phase and we now see the forecast date (for regular shipments) in the third quarter, towards the end of June,” De Botelho told reporters in parliament.

The company had initially said exports would start in the first quarter and then moved the date to May, but De Botelho said a shipping test would be conducted next month and the plant officially inaugurated in June.

Angola LNG’s plans to turn its focus away from US buyers occurs in the wake of a rapid increase in US shale gas production brought about by new drilling and extraction technologies, De Botelho said.

He said while the price of LNG in the US market is at $2 per million British thermal units (mmBtu), in Europe it is at between $6 and $8 and at around $13 in Asia.

Trading sources told Reuters last week that Asian LNG spot prices for May and June delivery exceeded $17 per mmBtu, supported by record demand from Japan, as the world’s top buyer increases in gas-fired power generation after last year’s Fukushima nuclear disaster.

De Botelho also said that plans by French oil major Total to reduce output at its Girassol platform in June for planned works do not threaten the government’s target to produce an average of 1.8 million barrels of crude per day this year. – Reuters

Share |  


Facebook icon

Facebook


Twitter icon

Twitter


Google icon

Google


Yahoo icon

Yahoo


Reddit icon

Reddit


del.icio.us icon

del.icio.us

If you want to email this page to more than one person, just put a semicolon “;” between the email addresses.

Please enable JavaScript to view the comments powered by Disqus.

Article source: http://www.iol.co.za/business/international/angola-lng-to-start-exports-june-1.1282975

April 24th, 2012 | Posted in Companies | Read More »

Shell banks on expertise to win $1.8 bln battle for Cove


Tue Apr 24, 2012 10:34am EDT

* Shell offers 220 pence per share in recommended cash deal

* Offer increased to match rival bid from PTTEP

* Deal includes break fee of 11.1 mln stg

* Cove shares above offer price, suggesting hopes for bid
war

* Cove, Shell decline comment on Mozambique capital gains
payment

By Sarah Young

LONDON, April 24 (Reuters) – Royal Dutch Shell has
agreed to buy Cove Energy for 1.12 billion pounds ($1.8
billion), lifting its offer to access East Africa’s huge gas
reserves, but failing to quell hopes of a bid battle for the
Mozambique-focused explorer.

Cove’s directors recommended the offer from oil major Shell,
which matched rather than beat a rival offer made by Thai
state-controlled oil firm PTT Exploration and Production Pcl
(PTTEP) in February, as Shell betted that its
expertise would help secure the deal.

“PTTEP is currently considering its options and will make a
further announcement as and when appropriate,” the Thai firm
said in a statement on Tuesday.

Industry interest in East Africa has been gathering pace
after huge gas discoveries were made there, with the region
tipped to become a major natural gas producing region supplying
liquid natural gas (LNG) to energy hungry Asian markets.

Mozambique’s bountiful natural resources have boosted hopes
for development in the region, potentially paving the way for
energy-intensive industries to spring up in the country provided
some of the gas is available for domestic use.

Shares in Cove traded above Shell’s 220 pence per share
offer, up 4.7 percent to 227.25 pence at 1353 GMT, signalling
investors are hopeful of a higher bid.

“Competing offers can still be made and the shares will now
likely trade to a slight premium on the hope that PTTEP will
trump Shell,” said Investec analysts.

However, Westhouse Securities analyst Andrew Matharu said
Mozambique would likely favour Shell’s offer.

“A key component of this is how the Mozambique authorities
want to develop their resources and a project of this scale
needs an oil major with the financial resources and the
expertise of bringing world class scale projects to fruition so
you need someone like a Shell,” he said.

Shell said the deal was conditional upon approval from the
government of Mozambique amongst other things, adding that it
includes a break fee of 11.1 million pounds if Cove later
accepts a rival bid.

On a usual timetable, a competing offer would have a window
of around one to two months to emerge.

Cove’s directors, in possession of a collective 4.38 percent
stake in the company, said they would be accepting the offer.

TAX ISSUE

Both Cove and Shell declined to comment on how capital gains
tax which will be owed to Mozambique upon the sale of assets in
the country will be paid.

Cove said earlier in April that it will be subject to a tax
rate of 12.8 percent on the capital gains arising from the sale
of its Mozambique assets, clarifying that a levy would be
applicable after a period of uncertainty which analysts had
warned could impact the sale.

“It is still not clear who, or how the capital gains tax
associated with the Cove sale will be paid to Mozambique,” said
Canaccord Genuity analyst Braden Purkis.

“However, it is clear that Cove shareholders will receive
220 pence in cash for each share held,” he added.

Cove’s main asset is an 8.5 percent stake in the Rovuma
Offshore Area 1 in Mozambique, where operator Anadarko
has said recoverable reserves could top 30 trillion cubic feet
of natural gas.

Mirabaud Securities analysts said Cove’s stake seems a small
holding for a company the size of Shell, which is one of the
world’s biggest LNG players.

“We would look for it to take further equity over the coming
months,” they said.

In addition to Anadarko, Japan’s Mitsui and Indian
groups Bharat Petroleum and Videocon each
own 10 percent stakes in the Rovuma licence.

Other companies with gas discoveries and looking to build
LNG facilities in the region include Italy’s Eni, whose
field neighbours Cove’s Rovuma area, and Norway’s Statoil
and Britain’s BG Group off the coast of
Tanzania.

Some in Southern Africa expressed hopes that not all of the
gas will be exported as LNG to Asia, where Japan’s reduced focus
on nuclear power has boosted demand, warning that this would
minimise the benefits of the discoveries to the region’s
development.

“It should not be a re-colonisation of Africa,” the Chief
Executive of South Africa’s state-owned power utility Eskom
{ESCJ.UL] Brian Dames told Reuters in an interview on Tuesday.

Shell had previously made a $1.6 billion approach for Cove
in February, before PTTEP beat the offer, prompting hopes of a
bidding war, with an Indian consortium saying at one point it
was also considering entering the fray.

Morgan Stanley advised Shell on the bid, while Standard
Chartered advised Cove.

Separately, Mozambique said on Tuesday that it will launch a
new bidding round for exploration licences in the southern part
of the Rovuma basin by the end of this year.

Article source: http://www.reuters.com/article/2012/04/24/shell-cove-idUSL5E8FO16U20120424

April 24th, 2012 | Posted in Companies | Read More »

Australia set to take its place on LNG stage

April 24, 2012 5:24 pm

Article source: http://www.ft.com/cms/s/0/3adce71e-8d9f-11e1-b8b2-00144feab49a.html

April 24th, 2012 | Posted in Companies | Read More »

PIRA Energy Group’s Weekly Oil Market Update for April 23

European refining margins reach lofty levels and Asian light sweet crude prices will show relative strength.

New York, NY (PRWEB) April 23, 2012

NYC-based PIRA Energy Group reports that European refining margins reached very high levels, and Asian light sweet crude prices will show relative strength. Weekly U.S. commercial oil stocks declined, and Japanese demand trends look softer. The EPA’s new oil and gas sector regulations took the middle ground. Specifically, PIRA’s analysis of last week’s oil market fundamentals has revealed the following:

The largest U.S. crude stock build of the year (for the week ending March 30) came at an inopportune time for oil prices. Risk markets in general are taking a hit from the recent Federal Reserve meeting and fears that Europe is sliding into another debt crisis. Meanwhile, the liquidity injections by Central Banks around the world are working.

European refining margins reach lofty levels. Oil price structure will be supported by refiners coming back from maintenance, continuing non-OPEC supply outages, the impact of sanctions on Iran, the threat of conflict in the Middle East, tighter physical balances in 2H12, and very limited OPEC spare capacity. European margins soared recently to levels not seen since the peaks in the “Golden Age,” partially because of recent softness in prompt crude. Supply-demand fundamentals do not support that level of strength.

Asian light sweet domestic crude prices will continue to show relative strength as utility demand for direct crude burn and low sulfur waxy residue (LSWR) remains heightened over the summer. Refinery margins in Asia are currently good and will continue to be supported by relatively firm middle distillate cracks, a stronger fuel oil crack, and only modest easing in gasoline cracks.

Major petroleum products lead U.S. commercial stocks down again week-on-week. During the week ending April 13, low crude runs and product imports, along with relatively strong demand, led to another substantial decline in the stocks of the four major products. The inventories of both crude oil and other products built, but overall stocks were down week-on-week. For the first time since January, weather- and export-adjusted four-week average demand is running above 2011 levels.

Japanese petroleum produce demand trends soften. For the week ending April 14, finished product stocks built as demand trends have been looking weaker, even beyond the seasonal decline in kerosene demand. PIRA had been expecting softer demand in April and this appears to be playing out. While demand trends will likely continue to ease into early May, rising refinery maintenance should begin to temper stock-building.

Final EPA NSPS/NESHAP regulations find a middle ground for now. On April 18, the EPA released final New Source Performance Standards (NSPS) and National Emissions Standards for Hazardous Air Pollutants (NESHAP) for the oil and gas sectors. In the final rule, the EPA seems to have found a rare middle ground between environmentalists and industry. Government policies that restrict access or raise the costs of production are a key potential constraint to continued growth in the booming U.S. energy production industry. PIRA does not expect oil or gas drilling efforts to be materially affected due to compliance with the new regulations.

In the U.S., Mt. Belvieu LPG prices are being supported by buying ahead of ethylene plants coming back from turnarounds, as well as arbitrage hedging activity. In Europe, pressure is coming from inbound arbitrage, in addition to increased availabilities from West Africa and Algeria. A similar scenario is playing out in the East, where arbitrage cargoes are competing with increasing exports from the Arab Gulf.

The information above is part of PIRA Energy Group’s weekly Energy Market Recap, which alerts readers to PIRA’s current analysis of energy markets around the world as well as the key economic and political factors driving those markets.

Click here for Additional Information on PIRA’s global energy commodity market research services.

PIRA Energy Group

3 Park Avenue, 26th Floor

New York, NY 10016

212-686-6808

sales(at)pira(dot)com

For the original version on PRWeb visit: http://www.prweb.com/releases/prweb2012/4/prweb9434576.htm

Article source: http://www.chron.com/business/press-releases/article/PIRA-Energy-Group-s-Weekly-Oil-Market-Update-3504179.php

April 24th, 2012 | Posted in Companies | Read More »

American Liberty Petroleum Corp. Announces Foreland Refining’s Crude Oil …


BAKERSFIELD, Calif., Apr 24, 2012 (BUSINESS WIRE) –
American Liberty Petroleum Corp. is pleased to
announce that on April 19, 2012, Foreland Refining Corporation
(“Foreland”) signed an agreement to purchase all of the Company’s crude
oil production from the Gabbs Valley oil field in Nye County, Nevada.
Foreland operates the Eagle Springs Refinery in Ely, Nevada, in
neighboring White Pine County to the east. The refinery receives crude
oil from Nevada’s Railroad Valley and other oil wells to process into
asphalt, diesel fuel and other petroleum products.

Foreland signed the crude oil purchase agreement with Independence
Drilling LLC, the designated operator for a joint venture (“the JV”)
between American Liberty Petroleum, Cortez Exploration LLC and Desert
Discoveries LLC. The JV was formed to acquire and develop oil and gas
properties in Nevada with the aim of petroleum production.

According to the terms of the crude oil purchase agreement, Foreland
will pay the “Big West Oil” Black Wax crude posting adjusted for gravity
and B.S. W. and less freight delivered to Foreland’s Eagle Springs
Refinery. Foreland will make its payments via wire transfer of funds on
the 20th day of the month following the month of delivery.

American Liberty Petroleum’s President, Alvaro Vollmers, commented:
“We’re fortunate to now have an agreement in place with a nearby refiner
for the purchase of all subsequent production from our Gabbs
Valley-based activities. Our next step is to maximize on the production
potential of the Paradise 2-12 well while further exploring our other
opportunities in the area.”

FOR MORE INFORMATION

Learn more about the Paradise 2-12 well and the Gabbs Valley Prospect at
the American Liberty Petroleum website, where you can also find more
information about the Company as well as the latest news releases:
http://www.americanlibertypetro.com .

ABOUT AMERICAN LIBERTY PETROLEUM CORP.

Based in Bakersfield, California, American Liberty is a publicly traded
company
focused on reducing America’s need for imported oil through discovering
major, new onshore US energy resources and by tapping overlooked or
undervalued onshore domestic resources through exploration and
development technologies not previously available. Recent significant
discoveries, such as Occidental Petroleum’s estimated 1+ billion barrels
of oil and natural gas equivalents in California*, underscore the
potential for developing new oil and gas production solutions in western
America. Next door in the under-explored state of Nevada, American
Liberty’s 8,157-acre Gabbs Valley Prospect is located on the 26,000-acre
Cobble Cuesta structure, which is estimated to represent oil reserves of
4+ billion barrels**. The Company’s 7,270-acre Kibby Flat Prospect in
the Monte Cristo basin, meanwhile, represents estimated ultimate
recovery (EUR) of as high as 669 million barrels of oil according to a
2008 report***.

* Occidental Petroleum’s Path to Easy Oil. Forbes Magazine, March 29,
2010 ** Reserve Estimates for the Cobble Cuesta Structure, Alfred
H. Pekarek, Ph.D., Geologist, January, 2008 *** Kibby Flat Prospect
report, Jerry Walker, Consulting Geologist, Sept. 2008

ON BEHALF OF THE BOARD OF DIRECTORS,

American Liberty Petroleum Corp. Alvaro Vollmers, President

4900 California Ave Tower B-210 Bakersfield, CA 93309

OTCBB: OREO.OB

Certain statements in this press release are considered to be
forward-looking and involve a number of risks and uncertainties. Such
forward-looking statements are within the meaning of that term in
Section 27A of the Securities Act of 1933, as amended and Section 21E of
the Securities Exchange Act of 1934, as amended. American Liberty
Petroleum Corp. bases these forward-looking statements on current
expectations and projections about future events, which are based on
information currently available. The forward-looking statements in this
press release may also include statements relating to American Liberty
Petroleum Corp.’s anticipated business prospects, new developments,
financial performance, strategies and similar matters. American Liberty
Petroleum Corp. disclaims any obligation to update any of its
forward-looking statements, except as may be required by law.

Cautionary Note to U.S. Investors – The United States Securities and
Exchange Commission permits U.S. mining companies, in their filings with
the SEC, to disclose only those mineral deposits that a company can
economically and legally extract or produce. We may use certain terms in
this press release, such as “measured,” “indicated,” and “inferred”
“resources,” which the SEC guidelines strictly prohibit U.S. registered
companies from including in their filings with the SEC. U.S. Investors
are urged to consider closely the disclosure in our Form 10-K which may
be secured from us, or from our website at
http://www.sec.gov/edgar.shtml .

SOURCE: American Liberty Petroleum Corp.


        American Liberty Petroleum Corp.
        INVESTOR RELATIONS
        Andrew Barwicki
        Toll Free: 1-888-689-9654
        ir@americanlibertypetro.com

Copyright Business Wire 2012

Article source: http://www.marketwatch.com/story/american-liberty-petroleum-corp-announces-foreland-refinings-crude-oil-purchase-contract-for-all-production-from-gabbs-oil-field-2012-04-24

April 24th, 2012 | Posted in Companies | Read More »

Carlyle in Sunoco Talks Shows Private Equity Sees Rebound

Carlyle Group (CG) (CG)’s talks to buy a
majority stake in Sunoco Inc. (SUN) (SUN)’s Philadelphia refinery show
private equity is betting the business abandoned by public oil
companies may be poised for a long-term rebound.

If the talks are successful, Washington-based Carlyle would
pay cash into a joint venture that would oversee day-to-day
operations at the plant, according to a statement yesterday.
Sunoco, based in Philadelphia, would have no ongoing capital
requirements at the refinery. No terms were disclosed and an
agreement hasn’t been finalized.

Carlyle would join Blackstone Group (BX) (BX) and TPG Capital, which
made refinery deals in the past two years to expand natural
resources investments. Unlike public companies, which have to
answer to shareholders every quarter, private-equity funds can
make longer-term bets on a business or an industry because their
capital is usually locked up for 10 years.

“They’re looking to pick up a cash-generating asset at a
good price and flip it in four or five years,” said Neil
Earnest, practice leader for mergers and acquisitions at Muse
Stancil, a Dallas-based consulting firm that specializes in the
energy industry. “They want to buy something cheap and sell
high.”

Private equity firms are turning to refining assets on the
U.S. East Coast and in Europe as the lowest margin in nearly a
decade has transformed profitable plants into money-losers,
reducing the value enough to make a turnaround bet an attractive
proposition, Earnest said in a telephone interview yesterday.

East Coast Disadvantage

Refineries on the East Coast have been hurt because their
only source of crude is based on Brent, the global benchmark,
which sold for an average $15.69 a barrel higher in 2011 than
U.S.-produced oil, according to data compiled by Bloomberg. The
difference between the cost of crude and the price at which
refiners can sell fuel on the U.S. East Coast sunk to an average
of $7.94 a barrel last year, the lowest point since 2003,
according to data compiled by Bloomberg.

Although Sunoco has lost money in refining in 10 of the
last 11 quarters, the fortunes of the Philadelphia plant could
improve if the company is able to buy cheaper oil produced in
Canada and North Dakota, John Auers, senior vice president of
Turner Mason Co., a Dallas-based energy consulting firm.

Sunoco fell 1.1 percent to $39.05 at 9:46 a.m. in New York.
The shares have risen 15 percent this year.

O’Malley’s Deals

With oil companies selling, buyout firms have picked up
refining assets on the cheap. Blackstone, the world’s largest
private-equity firm, and energy specialist First Reserve formed
PBF Energy Co. in 2008 with Thomas O’Malley, a veteran oil
industry investor and trader. PBF bought a Delaware City,
Delaware refinery for $220 million in 2010. PBF, which also
bought plants in New Jersey and Toledo, Ohio, filed for an
initial public offering last November.

“You have to buy very cheaply, and have an exceptional
management team that knows how to operate the assets safely and
reliably, and can source and finance purchases of crude oil and
the sale of refined products efficiently,” said David Foley, a
senior managing director at Blackstone. “Petroleum refining is
a very tricky, very volatile industry. Even if you buy a
refinery for almost nothing, you still have to invest a lot of
capital for maintenance, environmental compliance and crude oil
inventories.”

TPG Capital, the private-equity firm run by David Bonderman, in October of 2010 agreed to acquire most of Marathon
Oil Corp. (MRO) (MRO)
’s Minnesota refining holdings for about $900 million,
the firm’s largest investment in fuel making and delivery.

Rescuing Petroplus

KKR Co., the private-equity firm run by Henry Kravis and
George Roberts, has been among the most aggressive buyout
investors in energy, targeting deals tied to tapping natural-gas
reserves. The New York firm last year led a group of investors
to buy Tulsa, Oklahoma-based Samson Investment Co. for $7.2
billion.

KKR has yet to announce a refinery deal along the lines of
the PBF transaction or Carlyle’s proposed tie-up with Sunoco.
Earlier this year, KKR’s asset-management unit was among the
investors providing a financial lifeline to a refinery owned by
insolvent Petroplus Holding AG. (PPHN) Morgan Stanley and AtlasInvest
also participated in the deal.

Petroplus itself has a private-equity history. Carlyle
bought Petroplus in 2005 and made about six times its investment
when the company went public and it sold most of its stake.
Along the way, it hired O’Malley, who bought up plants in
France, England and Germany.

Shedding Refining Assets

Petroplus’s stock doubled in the first eight months after
the IPO in November 2006. The next year, with the financial
crisis looming, the shares started to slump. The company sought
protection from creditors this year after profit margins shrank
from pressures similar to the ones Sunoco and other competitors
face.

So-called “integrated” energy companies including Exxon
Mobil Corp. (XOM) (XOM)
and Chevron Corp. that extract and process crude
have been shedding refining capacity since 2011 to focus on the
business of producing oil, which has become more profitable as
crude prices surged to $126.65 on April 8, the highest since
2008, according to data compiled by Bloomberg.

Refining is a cyclical business that can reap a bounty
depending on product prices, the location of a given plant and
its processing capabilities. The ability to process heavier,
cheaper grades of crude, or lower-priced oil produced in North
Dakota and other areas in the Midwest last year drove profits
for refiners such as Valero Energy Corp. (VLO) (VLO) and HollyFrontier Corp. (HFC) (HFC)
to the highest level since 2007.

Tightening Capacity

On the East Coast, refineries have been at a disadvantage
because of falling demand for gasoline, excess supply from
European imports and competitors’ ability to buy crude for lower
prices in other parts of the country. Oil produced in North
Dakota sold for $46.25 less than the global benchmark on Feb. 9,
according to data compiled by Bloomberg.

Sunoco said Sept. 6 that it would seek a buyer or shut its
330,000 barrel-a-day Philadelphia refinery in July. About 1.7
million barrels a day of refining capacity on the U.S. East
Coast and in Europe is set to close due to tightening margins,
the largest reduction in more than 10 years, according to a
Bloomberg Industries refining analysis. Another 1.3 million
barrels a day is either for sale or scheduled to close,
according to the analysis.

Pennsylvania politicians and union leaders have rallied to
oppose East Coast refinery closures and have asked the companies
to find buyers for the assets, rather than idling them. Also on
the block is ConocoPhillips (COP) (COP)’ Trainer, Pennsylvania refinery,
which has seen interest from Delta Air Lines Inc., according to
a person familiar with the matter.

Saving Jobs

“It is a heavy lift and we are not sure a solution is
possible, but we are doing the work,” Rodney S. Cohen, a
managing director of the Carlyle Group, said in the statement
announcing the talks with Sunoco.

Sunoco Chief Executive Officer Brian MacDonald, who took
over in March, has sought a buyer for the Philadelphia plant so
the company can focus on expanding its pipeline business. While
talks are under way, Sunoco will keep it open until August, the
company said yesterday.

The refinery deals may help private equity as it seeks to
make the case that it can save or create jobs. The industry’s
role in the broader economy has come to the fore with the U.S.
presidential candidacy of Mitt Romney, the former chief
executive officer of Bain Capital LLC, who’s faced criticism for
firing workers at some companies Bain purchased.

PBF, the Blackstone and First Reserve-backed joint venture,
threw an event last October to celebrate the reopening of the
Delaware City facility. Flanked by the state’s governor and
other elected officials and a union representative, Blackstone
president Tony James noted that PBF spent $450 million to
renovate the facility, which has about 500 full-time employees
and 250 contract workers.

To contact the reporters on this story:
Jason Kelly in New York at
jkelly14@bloomberg.net;
Bradley Olson in Houston at
bradleyolson@bloomberg.net

To contact the editors responsible for this story:
Christian Baumgaertel at
cbaumgaertel@bloomberg.net;
Susan Warren at
susanwarren@bloomberg.net

Article source: http://www.businessweek.com/news/2012-04-24/carlyle-in-sunoco-talks-shows-private-equity-sees-rebound

April 24th, 2012 | Posted in Companies | Read More »

US refinery margins slip 7.4 pct-Credit Suisse

Mon Apr 23, 2012 9:29am EDT

Article source: http://www.reuters.com/article/2012/04/23/refinery-margins-usa-idUSL2E8FN2CX20120423

April 24th, 2012 | Posted in Companies | Read More »

Oman to Seek Construction Bids for Sohar Refinery, Observer Says

Oman Oil Refineries Petroleum
Industries Co. plans to seek bids this year for engineering,
procurement and construction work to expand the Persian Gulf
state’s biggest processing plant, the Oman Observer reported.

The project will increase capacity at the 116,400 barrel-a-
day Sohar refinery by about 60,000 barrels, with output to be
exported and also sold locally, the newspaper said, citing Chief
Executive Officer Musab al-Mahrouqi.

Construction is to start next year and be completed in the
first half of 2016, according to the report today. The state-run
company will announce a shortlist of prequalified contractors
within a month, it said. Oman is the largest non-OPEC oil
producer in the Middle East.

To contact the reporters on this story:
Faisal Mantheri in Dubai at
fmantheri@bloomberg.net;
Ayesha Daya in Dubai
adaya1@bloomberg.net

To contact the editor responsible for this story:
Stephen Voss at
sev@bloomberg.net

Article source: http://www.bloomberg.com/news/2012-04-24/oman-to-seek-construction-bids-for-sohar-refinery-observer-says.html

April 24th, 2012 | Posted in Companies | Read More »

Recently Commented