October 17, 2017:

Iraqi Oil Minister Jabar al-Luaibi has announced plans to construct a new refinery in the oil-producing region of Kirkuk, which has become the scene of open conflict between Baghdad and the Kurdistan Regional Government (KRG). The Iraqi government also plans to increase oil production from the region to more than a million barrels per day with a foreign oil company to be contracted to implement the plan, according to the minister.  Al-Luaibi said all the oil fields in the province are back under government control.  The minister warned Kurdish authorities against blocking the Kirkuk oil export pipeline, saying they would face legal action.  On Monday, Iraqi troops forced their way into the Kurdish-controlled city of Kirkuk with many locals fleeing the battle zone.  The economically important region drove a wedge between Baghdad and the KRG after an independence referendum held by Iraqi Kurds on September 25. Kirkuk was included in the vote, despite competing claims to the disputed area.  Rising tension in the region has kept global crude prices moving upward. West Texas Intermediate crude for November delivery was up 0.06 percent to $ 51.93 per barrel at 1:00pm GMT on Tuesday. Brent crude for December gained 0.5 percent to $58.09. 

By www.rt.com

October 17, 2017:

Russian refining and production company Gazprom Neft has produced its first ultra-low sulphur fuel oil to meet the requirements of the emissions control areas (ECA) as laid out in IMO’s MARPOL protocol.  The Omsk Refinery developed a catalytic cracking technology in 2016 for producing marine fuel oils that meet or fall below the 0.1% limit required to comply with the MARPOL ECA standards. The fuel has also been certified to comply with the Eurasian Economic Community regulations.  According to Gazprom Neft, a subsidiary of the majority state-owned Russian gas and oil giant PAO Gazprom, the new fuel formulation – RMG-80 – includes an additive that reduces reciprocal viscosity temperature and prevents wax settlement in the fuel.  The Omsk Refinery said it plans to ship as much as 50,000 tonnes of the low-sulphur marine fuel by the end of 2017, estimating the total market potential for the product at 158,000 tonnes per year.  As part of modernisation works to prepare itself to produce the ultra-low sulphur fuel oil, Omsk Refinery’s commercial production facilities underwent an extensive reconstruction estimated to have cost US$3.5M. During the facility’s upgrade, more than 3 km of pipeline was installed and its overhead rail loading rack was updated.  In addition to meeting the MARPOL ECA standards, the oil is one of many potential options available to shipowners and operators trying to ensure compliance with the IMO’s Tier III sulphur regulations, which limit vessel sulphur emissions to 0.5% and are due to come into force globally in 2020. A recent Exxon survey of the maritime industry found that some 70% of vessel operators remain underprepared for the upcoming regulations.   

By www.tankershipping.com

July 28, 2017:

The Senate on Thursday expressed reservation on the processes adopted in the planned concessioning of the Port Harcourt Refinery by the Nigerian National Petroleum Corporation (NNPC) and Ministry of Petroleum Resources.  This followed  adoption of the report of Senate Ad hoc Committee mandated to investigate the matter.  The Upper Chamber also accused the duo of violating due process in engaging the AGIP, ENI, and Oando for the rehabilitation of the refinery.  It resolved  that  further discussions with the stakeholders on the rehabilitation of the refinery be discontinued  and directed that an open, competitive and transparent process be evolved by the authorities concerned. The senate said that  public invitation for bids under clearly spelt out terms and conditions  be re-advertised.  Presenting the report, the Chairman, Sen. Abubakar Kyari (Borno-APC) said the committee was mandated to investigate the planned concession of Port Harcourt Refinery to AGIP/ENI and Oando by the Ministry of Petroleum Resources.  He said findings from investigation carried out  revealed that the   process of engaging the stakeholders by NNPC and the ministry as financiers to rehabilitate and improve performance of the refinery were seemingly not transparent enough.  He said the committee made some recommendations from its findings. 

“The process to rehabilitate refineries must be open, competitive and transparent.  “This should be with the participation of all relevant stakeholders otherwise it would be construed as backdoor transfer of the asset to a preferred investor.  “The competent independent technical consultant should be engaged to review the diagnostic report (under preparation) on Port Harcourt Refinery and recommend a suitable strategy for attracting private sector investment.  “This is taking into consideration re-appraised rehabilitation cost estimates, environmental concerns of host communities and labour issues.  “The Ministry of Petroleum Resources, NNPC, Bureau of Public Enterprises (BPE) and Infrastructure Concession Regulatory Commission (ICRC)  should collaborate for national interest in accordance with extant laws.  “ The issue of the oil and gas sector needs to be addressed in a transparent manner  to increase revenue generation, create employment and infrastructural development,” Kyari said.  

By Thenationonlineng.net

July 28, 2017:

Uzbekistan expressed readiness to purchase up to 500,000 tons of oil from Russia for the refinery in the Jizzakh region, the Republic’s Prime Minister Abdulla Aripov said in a letter addressed to Russian First Deputy Prime Minister Igor Shuvalov, Russia’s Izvestia newspaper reported.  In the letter, Aripov asked to provide assistance in organizing work of the Russian companies.  "To date, the Uzbek side is ready to test pump 30,000 tons and purchase up to 500,000 tons of oil before the end of 2017, bringing the annual volume of supplies to 1 million tons in the period of 2018-2020," the letter said.  It was previously reported that the agreement on import oil supplies was reached during the visits of Uzbek President Shavkat Mirziyoyev to Kazakhstan and Russia.  At the end of April 2017, Uzbekistan started construction of a new refinery in Zafarobod district of the country’s Jizzakh region, which is expected to operate using the crude imported from Kazakhstan and Russia.  The refinery has design capacity of processing of five million tons of oil per year, production of 3.7 million tons of car fuel, over 700,000 tons of aviation fuel and 300,000 tons of associated oil products.  The cost of the project is $2.2 billion. It is scheduled to complete construction of the refinery in 2022.  The Jizzakh region is located in the central part of Uzbekistan and borders Kazakhstan in the north, and this will facilitate the construction of the oil pipeline.

By Trend News Agency

July 27, 2017:

San Antonio-based refiner Valero Energy Corp.’s second-quarter earnings fell 32.7 percent after a power outage took the company’s refinery in Benicia, California offline for a month, the company said Thursday.  Valero earned $548 million in the three months ended June 30, or $1.23 per share, down from $814 million or $1.74 a share during the same period last year. The results beat Wall Street expectations. Analysts surveyed by Bloomberg predicted the company would make $1.11 a share.  “With continued focus on safe and reliable operations, we delivered another quarter of solid operating and financial performance,” CEO Joe Gorder said in a news release announcing the company’s results. “We’re encouraged by resilient product demand and the bullish trend in product inventory draws.”  The sudden loss of power at the Benicia refinery in May resulted in a temporary shutdown and unplanned maintenance, costing the company more than $100 million, which equates to about 16 cents per share, CFO Mike Ciskowski told analysts on a conference call announcing the earnings. It also forced the facility to burn or “flare” petrochemicals under emergency shutdown procedures, which led to sanctions by a local regulator for safety violations, the company previously said. 

Valero has sued Pacific Gas and Electric for the power outage for more than $75 million. The sudden loss of power put the refinery’s employees and the neighboring community at risk of “explosions, fires, and serious injury or death,” Valero said in its lawsuit.  Earnings were also reduced by the $461 million Valero spent on capital investments during the quarter, including $346 million to repurchase its own stock and $63 million on turnaround projects. That brings the total amount of capital investments to $1.1 billion for the year. The company said it expects the Diamond pipeline and the Wilmington cogeneration plant to be operational by the end of the year. 

The company said it is hopeful that it can make progress with Donald Trump’s administration, which includes Secretary of Energy Rick Perry and EPA Administrator Scott Pruitt, who are seen as friendly to the energy industry.  “We’re pleased with the emphasis President Trump and his administration have placed on the energy sector and their willingness to discuss the issues,” Gorder said during a conference call.  One of the specific areas Valero has been looking for relief from the federal government is the renewable volume obligation determined by the EPA. The company wants the obligation, which Valero fulfills by buying Renweable Identification Numbers, or RINs, to shift to retailers instead of refiners.  Valero reported that biofuel blending requirements cost $255 million in the second quarter, up $82 million from the same time period last year largely due to increased RIN costs. This brings total biofuel blending costs to $401 million for the first half of 2017. Valero spent $750 million on this sector in 2016.  “We remain hopeful that point of obligation is dealt with properly, and we also are hopeful that the EPA uses its authority to adjust the RVOs to be sure that the blend wall doesn’t become a chronic problem going forward,” Gorder said.

By Mysanantonio.com