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.

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.

Platts 2004/11/30

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.

Eleme Petrochemicals company

Nigeria's National Petroleum @@

fs 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 corporationfs cash constraints.