“This expansion of our Gulf Coast refining system enables Chevron to process more domestic light crude, supply a portion of our retail market in Texas and Louisiana with Chevron-produced products, and realize synergies through coordination with our refinery in Pascagoula,” said Pierre Breber, Executive Vice President of Chevron Downstream & Chemicals.

Assets include a refinery with a capacity to process approximately 110,000 barrels per day of light crude, direct pipeline connections to increasing industry and equity crude oil production, connections to major product pipelines as well as waterborne access to receive and ship crude oil and refined products. The 466-acre complex is in Pasadena, Texas. It comprises a 323-acre refinery including a tank farm with a storage capacity of 5.1 million barrels of crude oil and refined products, as well as 143 acres of additional land.

The acquisition will add to the refining network of CUSA, which includes a refinery in Pascagoula, Miss., two facilities in California, in El Segundo and Richmond, and the Salt Lake refinery in Utah.

The acquisition is subject to customary closing conditions, including regulatory approvals.

• Chevron Agrees with Petrobras to Buy Pasadena Refinery System for $350 Million

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Husky’s decision to review and consider a sale of non-core Downstream assets comes as it increasingly focuses on core assets in its Integrated Corridor and on its Offshore business in Atlantic Canada and the Asia Pacific region. The potential disposition is being undertaken independent of the outcome of Husky’s proposed acquisition of MEG Energy.

“Our retail network and the Prince George Refinery are excellent assets, with exceptional employees, which have made solid contributions to Husky over the years,” CEO Rob Peabody said. “However, as we further align our Heavy Oil and Downstream businesses to form one Integrated Corridor, we’ve taken the decision to review and market these non-core properties.

“We expect the businesses will be highly marketable, attracting strong interest and valuations. Husky delivers value to its customers and we anticipate that high level of quality and service will continue whether or not the businesses are sold.”

Husky’s retail and commercial network consists of more than 500 stations, travel centres, cardlock operations and bulk distribution facilities from British Columbia to New Brunswick. The myHusky Rewards loyalty program has about 1.6 million members.

The 12,000 barrel-per day Prince George Refinery is located in Prince George, B.C. and processes light oil into low-sulphur gasoline and ultra-low sulphur diesel, along with other products. It supplies refined products to retail outlets in the central and northern regions of B.C.

TD Securities Inc. is acting as financial advisor, with Torys LLP as legal advisor.

• Husky Considering Sale of Non-Core Downstream Assets

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​PJSC LUKOIL announces that the final investment decision on the delayed coker complex at Nizhny Novgorod refinery was taken. The complex includes the construction of the delayed coker unit itself, the diesel hydro treatment unit, the gas fractionation unit, the sulfur and hydrogen production units and other infrastructure. The designed capacity of the complex is 2.1 million tonnes per annum.

The construction of the complex and related operations optimization will improve the refinery's light product yield by more than 10% while reducing the fuel oil production by 2.7 million tonnes per annum. The planned launch of the complex in 2021 will lead to the new technology intensive workplaces in the region.

PJSC LUKOIL has already developed the project documentation and signed contracts with CB&I and Kinetics Technology for the development of technical documentation and the delivery of the main long lead items.​

"While working on this project, we are extensively relying on our successful track record of the construction and use of the similar unit at our refinery in Perm.

Thanks to that, for example, the preparation of the project documentation and the receipt of necessary state approvals took us less than a year. The accumulated expertise also allows us to optimise the time and the costs of the facilities' construction. The partnership with CB&I and Kinetics Technology gives us an opportunity to implement the project's technical solutions in a time-efficient and a high-quality way. The Russian companies with the necessary expertise will be involved in the construction," said Vladimir Nekrasov, First Vice-President of PJSC LUKOIL.

1. Lukoil Takes Final Investment Decision On Delayed Coker At Nizhny Novgorod Refinery

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The Joint Venture Company (JV) PT Pertamina Rosneft Pengolahan dan Petrokimia (Indonesia) was established in accordance with the Joint Venture Agreement (the ‘JVA’) signed in October 2016. The JVA envisages the following participants shares in the joint venture: Rosneft – 45%, Pertamina – 55% and sets out the JV's governance principles.

Rosneft and Pertamina conducted the project feasibility study and moved to basic engineering and design (BED) of TGRR. The attractive market conditions of Indonesia and the expected consumption growth enabled the working group of Rosneft and Pertamina to develop a competitive concept of the new refinery and petrochemical complex. The parties confirmed possibility of arranging project financing after bankability study performed with the international financial institutions.

The planned refining capacity is 15 mmpta (300 kbpd) and the targeted capacity of the petrochemical complex is over 1 mmtpa of ethylene and 1.3 mmtpa of aromatics. The feedstock for TGRR will be medium and heavy sulfur crude oil grades. The crude oil terminal will be able to accommodate VLCCs of up to 300 thousand tonnes.

TGRR is an important part of Rosneft strategy targeting growth in Asia-Pacific market of refined products.

• Rosneft and Pertamina set up a Joint Venture for the development of Tuban Grass Root Refinery (TGRR) project

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The three refineries will each have a capacity of 5 million tons per annum of Algerian crude oil and contain facilities for atmospheric distillation, Liquefied Petroleum Gas separation, hydrocrackers, desulphurisation, bitumen production, utilities, blending, effluents treatment, control room and laboratories. The Biskra site will also include lubrication oil facilities. At each of the refineries there will also be administrative buildings, storage tanks and shipping facilities.

Amec Foster Wheeler will also support Sonatrach in the selection of technology licensors for all three refineries.

Amec Foster Wheeler’s scope of work is scheduled for completion in the third quarter of 2017.

• Amec Foster Wheeler awarded multiple Algerian refinery contracts

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“This important investment demonstrates our ongoing commitment to refining,” said Lori Ryerkerk, Executive Vice President for Shell’s global Manufacturing business. “The Pernis refinery plays a key role in the European market and this modern and innovative unit will further improve its performance and competitiveness.”

Construction work is planned to start next year, subject to permit approvals, with completion expected by the end of 2018. The new unit will not change the refinery’s total processing capacity, but will allow a different product mix. Some existing units will require modifications in order to integrate with the new SDA unit.

Shell Pernis is the largest integrated refinery complex in Europe and occupies a strategic location in the Rotterdam industrial region. It has a strong track record of safe and reliable operations.

The SDA unit will give the refinery more flexibility to respond to market developments and reduce the environmental footprint of its products. The investment strengthens Shell Pernis’ position as an important contributor to the Dutch economy and as one of the largest employers in the Rotterdam port area.

• Shell takes final investment decision to build Solvent Deasphalter unit at Pernis refinery in the Netherlands

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As part of the project, Axens is providing the following technologies:

• Prime-G+™, gasoline desulfurization unit for a design capacity of 1.2 Mtpa
• Prime-D™, diesel hydrotreater unit for a design capacity of 3.0 Mtpa

Axens is recognized by SOCAR as a key technology provider for clean fuel technologies since Axens was involved in the STAR refinery project in Turkey, supplying the naphtha, kerosene and diesel hydrotreating processes.

• Axens selected as licensor for clean fuel technologies for SOCAR Heydar Aliyev Baku Oil Refinery

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The grassroots refinery will use industry-leading refining processes from Honeywell UOP and automation controls from Honeywell Process Solutions (HPS) to allow Iraq’s State Company of Oil Projects’ (SCOP) Karbala refinery to maximize production of fuel and other products that will help offset the more than 350,000 barrels per day of refined products the country currently imports. These technologies will also help meet growing domestic demand with products meeting international standards equivalent to Euro V fuel standards. Startup of the 140,000 barrel-per-day refinery is expected in 2020.

“The Honeywell solution combines UOP’s deep process knowledge with HPS’s expertise in plant automation to make the refinery run at the top of its capability,” said Mike Millard, vice president and general manager of Honeywell UOP’s Process Technology and Equipment business. “The integration of process technology with a controls solution enables the Karbala refinery to make more gasoline, diesel, fuel oil, jet fuel, liquefied petroleum gas and asphalt, and make it more efficiently.”

“Honeywell has a great track record of successful projects implemented in Iraq,” said Pieter Krynauw, vice president and general manager of HPS’ Projects and Automation Services business. “When we combine UOP process technology with the HPS automation and controls, refineries will be able to reach peak performance faster and lower the total cost of ownership while getting the best return of investment for the project lifecycle.”

Honeywell technologies licensed for the Karbala refinery include:

• The UOP Penex™ process to upgrade light naphtha feedstock to produce isomerate, a cleaner gasoline blend-stock that does not contain benzene, aromatics or olefins.
• The UOP fluid catalytic cracking (FCC) process to convert heavy feedstocks recovered from other refinery operations into high-octane gasoline.
• The UOP CCR Platforming™ process to convert low-quality naphtha to high-octane blending components for gasoline.
• The UOP Unionfining™ process to improve the quality of distillate boiling-range feedstocks to help meet tougher product specifications.
• The UOP Chlorsorb™ process to help meet stringent waste gas specifications.
• The Experion® Process Knowledge System (PKS), the heart of the Integrated Control and Safety Systems (ICSS), which unifies people with process, business requirements and asset management by enabling integration of all process control and safety systems and automation software under a single architecture.
• Safety Manager, which integrates process safety data, applications, system diagnostics and critical control strategies, and executes defined safety applications in a fully redundant architecture.
• Fire and gas safety systems, which include SIL3 certified safety systems connected to fire detectors, fire alarm panels, fire suppression systems, gas detectors, sounders and beacons to minimize the impact of any abnormal situations.
• UniSim® training simulators, which enable industrial sites better plan, deploy and manage a structured program for operator competency.

• Honeywell Technology to Drive Iraq’s Most Advanced Refinery

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The refinery, operated by Esso Nederland BV, will use ExxonMobil’s proprietary hydrocracking technology and be the first to produce EHC Group II base stocks in Europe. Base stocks are the primary ingredients used in the production of high-quality lubricating oils and greases. Group II base stocks are higher in performance, resulting in advantages in many lubricant and process oil applications.

“This investment demonstrates ExxonMobil’s long-term view and disciplined investment approach,” said Jerry Wascom, president of ExxonMobil Refining & Supply Company. “Despite a challenging industry environment, we are committed to our long-term strategy of investing in projects in advantaged locations where we can continue to increase competitiveness and profitability.”

ExxonMobil’s Rotterdam refinery, one of the most energy efficient in Europe, plays a key role in the region and marketplace as a manufacturer of low-sulfur petroleum products and chemical feedstocks. Following the expansion, the hydrocracking process will use proprietary catalysts applied in a unique refinery process configuration to efficiently produce both high-quality base stocks and ultra-low sulfur diesel.

The base stocks that will be produced at Rotterdam are designed to help lubricant blenders achieve greater formulation flexibility and simplify global qualification testing. ExxonMobil’s EHC product line will enable customers to cost-effectively blend a broad range of finished lubricants to meet evolving industry requirements.

“This investment underscores our commitment to provide high-quality base stocks in Europe and follows previously announced expansions at ExxonMobil’s Baytown, Texas and Jurong Singapore refineries this past year,” said Loic Vivier, vice president of Wholesale & Specialties for ExxonMobil Fuels & Lubricants. “Combined with ExxonMobil’s existing manufacturing capabilities, this project will enable us to offer a global EHC Group II base stocks product offering to meet current and future customer needs.”

The Rotterdam hydrocracker project, coupled with the refinery’s advantageous location in an integrated petrochemical cluster, will strengthen the refinery’s position as a leader in the global refining industry.

The project’s environmental impact assessment has been approved and the site-permitting process is being finalized. Permits are expected in early 2016. Pending receipt of permits, construction is scheduled to begin in 2016 and unit startup is targeted for 2018.

About ExxonMobil Refining & Supply

ExxonMobil Refining & Supply and its stewarded affiliates operate a global network of reliable and efficient manufacturing plants, transportation systems and distribution centers that provide a range of fuels, lubricants and other high-value products and feedstocks to our customers around the world.

About ExxonMobil Basestocks

ExxonMobil is one of the world’s largest suppliers of base stocks and leading licensors of base stock technology and produces Group I, Group II/II+ and synthetic base stocks at strategically located refineries around the world. ExxonMobil’s base stocks are designed to provide enhanced performance capabilities in applications ranging from engine oils to industrial lubricants. ExxonMobil’s CORE Group I and EHCTM Group II slates meet more than 90 percent of the industry’s base stock needs and offer broader blend coverage and the potential to reduce supply chain complexity while meeting evolving industry requirements.

About ExxonMobil Rotterdam Refinery

ExxonMobil’s modern Rotterdam refinery has a daily throughput of 190,000 barrels and plays a key role in the region and marketplace as a manufacturer of low-sulfur petroleum products and feedstocks for the chemical industry. The refinery was built in the late 1950s and was the largest ever foreign investment at that time. A 1980s Flexicoker investment was the largest ever industrial investment in the Netherlands at that time.

About ExxonMobil in the Netherlands

ExxonMobil’s presence in the Netherlands dates back to 1891, making it the country’s oldest oil and gas company. ExxonMobil is also the oldest U.S. industrial company in the Netherlands. ExxonMobil now has several manufacturing sites in the Rotterdam area, including a refinery, a lubes plant and four petrochemical plants. Its Esso fuels are sold to branded wholesalers and resellers.

• ExxonMobil to Expand Rotterdam Hydrocracker to Produce Higher-Value Products

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The proposed purchase price for each NTI common unit is comprised of $17.50 in cash and 0.2266 of a share of Western common stock. The proposed consideration represents a 15% premium to the 20-day volume weighted average price (“VWAP”) of NTI’s common unit price as of October 23, 2015, and represents aggregate consideration of $27.62 per NTI common unit based on the 20-day VWAPs for NTI and Western as of October 23, 2015. Assuming completion of the proposed transaction, NTI will become a wholly-owned subsidiary of Western and NTI common units will cease to be publicly traded. NTI’s 7.125% Senior Secured Notes due 2020 will remain outstanding.

Jeff Stevens, President and CEO of Western said, “We believe this proposed transaction enhances value for both the Western shareholders and NTI unitholders. The combination of Western and Northern Tier will simplify our corporate structure and create a stronger, more diverse company with enhanced growth opportunities and greater access to capital.”

The proposed transaction is subject to the negotiation and execution of mutually acceptable definitive documentation and approval by Western’s Board of Directors, NTI’s Conflicts Committee and the common unitholders of NTI.

Western owns 100% of the general partner of NTI and owns approximately 38% of the outstanding common units of NTI.

Northern Tier Energy is the owner of Saint Paul Park Refinery

• Western Refining Makes Offer to Acquire All Publicly-Traded Units of Northern Tier Energy LP

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Rosneft will retain a 12% interest in Saras S.p.A. and the corresponding membership in the Board of Directors of Saras S.p.A.

In connection with the Offering, Rosneft JV Projects S.A. has undertaken not to dispose of any additional shares in Saras S.p.A. for a period of 180 days following completion of the Offering, subject to customary exceptions.

UBS acted as a bookrunner of the accelerated bookbuilt offering.

Rosneft’s partnership with Italian companies is a strategic one and it covers all business dimensions of the Company: exploration and production, refining, logistics and commerce of oil products, marketing of petrochemicals. The Company highly appreciates potential of the European downstream market and actively cooperates with the Italian partners in the area of oil supplies.

• Rosneft agreed to sell 8.99% interest in Saras S.p.A.

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As the heart of the hydrogen plant, the reformers will produce 344,500 Nm3/h(2) of hydrogen and syngas products. It will supply high quality export steam to the refinery steam network. The supply of the reformers is based on Technip’s proprietary top-fired steam methane reforming technology. The reformers are expected to come on-stream in 2018.

RAPID is PETRONAS’ largest green-field downstream undertaking in Malaysia, and along with its six major associated facilities, forms the Pengerang Integrated Complex (PIC). The associated facilities are the Pengerang Co-generation Plant, LNG Re-gasification Terminal, Air Separation Unit, Raw Water Supply project, the Liquid Bulk Terminal and the Central and Shared Utilities and Facilities.

Early involvement represents a strategic focus for Technip. Prior to the supply of the hydrogen reformers, Technip was involved in the front-end engineering design for the RAPID project.

The reformer project will be executed by Technip’s office in Zoetermeer, the Netherlands, a center of excellence for hydrogen and syngas technology. With more than 260 hydrogen production units licensed worldwide, Technip has been consistently recognized as the market leader in this technological field.

Stan Knez, President, Technip Stone & Webster Process Technology, commented: "We are delighted that our proprietary steam methane reforming technology has been selected for this PETRONAS RAPID site, which will be one of the largest hydrogen and syngas production facilities in the Asia Pacific region.”

• Technip awarded contract to supply hydrogen reformers for PETRONAS’ RAPID project in Malaysia

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For the Donges project, Axens has proposed an optimized process scheme specifically adapted to the existing refinery environment, and incorporating Total’s requirements in terms of energy efficiency and operational flexibility.

VGO HDS technology is part of Axens’ extensive portfolio in the field of middle distillates, VGO hydrotreating and hydroconversion, with more than 220 units licensed in the world totalizing close to 10 million BPD capacity.

Axens supplies VGO HDS technology license, basic engineering, proprietary catalysts and equipment as well as related services: training, unit start-up and follow-up.

• Axens’ VGO HDS technology selected by Total for its Donges Refinery, France

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Fluor is leading the joint venture, known as FDH JV, which consists of Fluor, Daewoo Engineering and Construction, and Hyundai Heavy Industries. The FDH JV is currently executing one package in the KNPC Clean Fuels project and will begin activities on the newly awarded Al-Zour packages soon.

“Fluor is proud to continue our long-standing relationship with KNPC, which spans more than five decades, and to become part of this prestigious and strategically important Al-Zour project,” said Taco de Haan, president of Fluor’s Energy & Chemicals Europe, Africa and Middle East business line. “From the onset, and throughout every phase of the project, our focus will be on the safe and efficient construction, commissioning and start-up of this new refinery.”

The Al-Zour refinery complex will be built on a greenfield site located south of Kuwait City. When completed, the new complex is expected to be one of the largest refineries in the world.

• Fluor Awarded Kuwait’s Al-Zour Contracts

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Paraxylene is one of the main and high-demand petrochemical production component, and the Atyrau Refinery has become the largest manufacturer of paraxylene in Central Asia. In 2014 Nursultan Nazarbayev launched the pre-commissioning procedures at the APC.

- Early as this year the Atyrau Refinery has tasked to produce 200 thousand tons more of A-92 gasoline than during the previous year, which, among other things, is a 20% reduction in dependence on imports, - Daniyar Tiyessov, General Director of JSC “KazMunayGas – Refining and Marketing”, said.

He also reminded that the Aromatics Production Complex was put into operation in accordance with the instruction of the Head of the State to establish a domestic petrochemical production, and is being implemented within the state program of industrial and innovation-based development.

Magzum Mirzagaliyev, Vice-Minister of Energy, during his speech at the ceremony, pointed out that the launch of the new complex will lay the foundation for development of a new non-resource industry:
- This will not only improve the fuel quality, but will facilitate the start of manufacturing products with increased added value as well, he said.

On the same day, a solemn meeting devoted to the 70th anniversary of Atyrau Refinery was held in Atyrau.
The history of the plant dates back to 1945 and is a continuous increase of the production volumes and product mix. The leaders of the Ministry of Energy, “Samruk-Kazyna” Fund and “KazMunayGas” National Company have sent their congratulations to the Atyrau Refinery team. These congratulations contain the words of gratitude to the labor veterans and workers of the current generation for their dedication to promoting the country’s energy and economic independence.

During the celebration, a number of labor veterans, workers of the refinery, representatives of contractors were awarded for their contribution to the development of Kazakhstan’s petrochemical industry.

• First paraxylene produced at Atyrau Refinery

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The sale would be the result of an intense and careful search for a suitable buyer by KPI, after a reevaluation of its strategy for the KP Europoort refinery. Among the most important criteria were continuing with the refinery operations and finding a financially solid, experienced, reliable buyer.

Gunvor is one of the world’s leading independent commodities trading companies. It has a proven track record of successfully taking over and operating refineries. Gunvor wholly owns two refineries; one in Antwerp, Belgium; and another in Ingolstadt, Germany, both acquired in 2012. The intended purchase of the KP Europoort refinery would enhance Gunvor’s existing refining operations, while also complementing its global trading activities.

• Kuwait Petroleum International (KPI) And Gunvor Group (Gunvor) Confirm The Final Stage Of Negotiations For The Sale Of The KP Europoort Refinery

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“The sale results from a strategic assessment of the site and how it fits with our refining portfolio,” said Jerry Wascom, president of ExxonMobil Refining & Supply Company.

“ExxonMobil regularly adjusts its portfolio through investment, restructuring or divestment consistent with overall global and regional business strategies. We remain committed to a large, global refining portfolio as part of our integrated business strategy. We will continue to make significant investments across the globe to strengthen our facilities which are often advantaged by scale and integration with chemicals and lubricant manufacturing.”

Approximately 700 employees and 700 contractors work at the refinery and associated facilities. Employees are expected to be offered positions with PBF and existing third-party supply agreements, obligations, terms and conditions remain unchanged.

Subject to repairs to the refinery’s electrostatic precipitator and regulatory approval, change-in-control is anticipated to take place by mid-2016.

ExxonMobil is retaining a presence in California through ongoing production of oil and natural gas and sales of fuels and lubricant products. Exxon- and Mobil-branded retail sites in the state are unaffected by the agreement.

PBF recently contracted to purchase the Chalmette refinery in Louisiana through a separate, independent bidding process, in which ExxonMobil holds 50 percent interest.

• ExxonMobil to Sell Torrance Refinery to PBF Energy

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• Northern Tier Announces Unplanned Maintenance on the Saint Paul Park Refinery No. 2 Crude Unit

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Wood Group Mustang successfully completed the conceptual and front-end engineering design phases of the project and is now providing detail engineering, procurement services, module fabrication oversight and construction engineering support services. Work is being conducted in Houston and Bogota, Colombia, via a collaborative work share model that provides an efficient, effective solution for FHR.

“We are pleased that Flint Hills Resources selected Wood Group Mustang to be the engineer for its Project Eagle Ford,” explained Curt Watson, president, Process Plants & Industrial at Wood Group Mustang. “Our project team has been engaged in this program since 2011 and has assisted FHR through each phase of the project’s evolution.”

Engineering is scheduled to be completed in mid-2016.

• Wood Group provides engineering services for Flint Hills Resources refinery upgrade

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The two year contract, the value of which has not been announced, includes optimisation of the refinery configuration, coordination of licensors, and the design for new units as well as the revamp of existing units. This includes establishing the optimum project definition to allow the project to be implemented at the lowest cost, while increasing the stable supply of petroleum products in accordance with the Euro 5 standard. Amec Foster Wheeler will also support BSR’s contracting activities ready for the next phase of the project.

Roberto Penno, Amec Foster Wheeler’s Group President for Asia, Middle East, Africa & Southern Europe, said: “This contract award affirms our world leading refinery capability, and I am delighted we are using our global expertise to support BSR in the development of Dung Quat, building on the design we completed for the original refinery 15 years ago.”

• Amec Foster Wheeler awarded Vietnam’s Dung Quat refinery contract supporting its $1.8 billion expansion plan

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