The Plastics
Exchange 2006/2/18
Indorama SPL close to buying Nigerian chem co for $225m
Close on the heels of Dr Reddy's acquisition of
Germany's betapharm, another company with Indian
links is on the verge of a major buyout overseas. It is reliably
learnt that the SP Lohia-promoted
Indorama SPL group, based in Indonesia, is close to acquiring Nigeria's
state-owned Eleme
Petrochemicals company for $225m.
Sources said that the deal is for 75 percent of the
equity capital of the Nigerian company -- one of the largest
petrochemical companies in Africa.
While
Indorama SPL belongs to the Lohia business family, it is separate from the India-based OP Lohia-managed Indo
Rama Synthetics. When contacted, Indo Rama
Synthetics chairman OP Lohia said that while he was aware of
Indorama SPL bidding for Eleme, "I can't say anything
further on the matter." SP Lohia is OP Lohia's brother.
The move by the Nigerian
government
to sell its stake in Eleme had attracted big bidders from around
the world, including Dangote Chemicals, Korea's LG Chemical,
which is a unit of LG Electronics and Transnational Corporation
of Nigeria.
Eleme is a subsidiary of Nigeria's National
Petroleum and
has the capacity to make 300,000 tonnes of olefins, 250,000
tonnes of polythylene and 80,000 tonnes of polypropylene.
Nigerian
government delays sale of Port Harcourt refinery to 2005
The Nigerian government Tuesday said the 150,000 b/d Port
Harcourt refinery and Eleme Petrochemicals Company would be both
privatized next year. "The process started some time ago but
was slowed down by several factors. But the process has started
again but we are now hoping they will be privatized next
year," presidential assistant on petroleum affairs Jafaru
Paki told Platts.
Nigeria's National Petroleum http://www.nigerianoil-gas.com/downstream/petrochemicals.htm
PETROCHEMICALS
NNPC’s long term plans for the
development of a petrochemicals industry, were formulated in
1977, and were structured in 3 phases. The 1st phase, now
complete, comprised of 3 plants: a linear alkyl benzene plant
(LAB) in Kaduna, and the carbon black and polypropylene plants
near Warri.
In 1988, the Phase I plants consisting of a 30,000 MTA Linear Alkyl Benzene Plant in Kaduna, a 35,000 MTA Polypropylene and an 18,000 MTA Carbon Black Plant in Ekpan, were commissioned.
The 2nd phase is the Eleme Petrochemicals Complex built by a consortium comprising Chiyoda, JGC, and Kobe Steel, of Japan, Technimont of Italy, and Spie Batignolles of France. NGL feedstock for this complex is supplied by the Agip/NNPC joint venture. The Eleme Complex is designed to produce 250,000 metric tons per year of polyethylene, and 80,000 metric tons per year of polypropylene. About half of the output is exported.
Further to the completion
of the Phase 2 -Eleme Petrochemicals project in Port Harcourt, a
number of other projects were planned by NNPC. One of these
projects is the Methanol/MBTE project, a joint venture
development with private investors. The project is estimated to
cost $442 million, and will involve a consortium including the
Penspen Group, Mannesman and Berge, and the NNPC. Another Methanol project, also with private investors, has
as a member of the consortium, a German technical partner,
Ferrostaal AG, who are also investors in the project. The project
has been delayed, however NNPC are still very keen to go ahead
with it.
The third phase of the petrochemicals development program,
intended for production of xylenes, is still at conceptual stage and
is delayed due to the corporation’s cash constraints.