CPChem (Phillips & Chevron JV)
Phillips’chemicals and plastics businesses were combined into a 50/50 joint venture with Chevron Corporation's petrochemical and plastics
businesses on July 1, 2000,
except for Chevron's Oronite fuel and lubricants additives
business. CPChem is one of the world's top producers of olefins,
polyolefins, aromatics and styrenics.
Headquartered in Houston, Texas, CPChem uses fractionated natural
gas liquids purchased from Duke Energy Field Services and other
sources as one of the primary feedstocks for petrochemicals - an
intermediate chemical like ethylene, propylene, benzene or xylene
- and other petroleum products of higher value. The
petrochemicals are used to produce plastics, specialty chemicals
and synthetic fibers.
CPChem, with 34 production facilities and seven research and
technology centers in eight countries, has the people, assets and
technology to pursue chemical opportunities on a global scale.
CPChem Facts (June 30, 2001, average data unless indicated)
Major Domestic Facilities:
Borger, Cedar Bayou, Orange, Pasadena, Port Arthur and Sweeny, Texas; St. James, La.; Pascagoula, Miss.; Marietta, Ohio; Drilling Specialties in Conroe, Texas; Guayama, Puerto Rico; and 11 plastic pipe and two pipe fittings plants.
Major Overseas Facilities:
Kallo-Beveren and Tessenderlo, Belgium; Shanghai, China; Zhandgjiagang, China; Al Jubail, Saudi Arabia; Singapore; Yochon, South Korea; and two plastic pipe plants in Mexico.
Assets: $7 billion.
Phillips' Interest: 50 percent.
Employees: 6,100
Growing International Presence
CPChem is moving to create
world-scale complexes in key overseas locations where excellent
feedstock resources allow competitive access to markets in Asia,
Europe, the Middle East and Africa.
The Qatar complex now under construction, Q-Chem I, is designed
to have an annual capacity of 1.1 billion pounds of ethylene, 1
billion pounds of polyethylene and 100 million pounds of
hexene-1. The complex, located in Mesaieed, Qatar, is expected to
start up in the third quarter of 2002. CPChem has a 49 percent
share, and the state firm Qatar Petroleum Corp. owns the
remaining 51 percent.
CPChem has also signed an agreement for the development of a
world-scale petrochemical complex, Q-Chem II, to be built in Ras
Laffan, Qatar. The facility will have an ethylene cracker with
the capacity to produce up to 2.6 billion
pounds per year and a polyethylene plant capable of producing 1.6
billion pounds per year. The Ras Laffan complex is scheduled for
completion in 2006.
CPChem signed a letter of intent in August 2001 to conduct a
feasibility study for construction of a styrene monomer plant in
Paraguana, Venezuela. The capacity of the Paraguana styrene plant
would be approximately 1 billion pounds annually, and the product
would be marketed primarily in the Americas region. The
feasibility study is expected to be completed by year-end with
startup of the plant potentially slated for 2007.
CPChem Plants Worldwide Gross MMLB/Yr
Facility | Product Line | |
Borger Plant, Borger, Texas | Methyl
mercaptan Ryton polyphenylene sulfide (PPS) Dimethyl sulfide High-purity hydrocarbons and solvents Mercaptans Mining chemicals Organosulfur chemicals Performance and reference fuels |
100 |
Cedar Bayou Chemical Complex, Baytown, Texas | Ethylene Normal alpha olefins (NAO) Propylene Low-density polyethylene (LDPE) High-density polyethylene (HDPE) Linear low-density polyethylene (LLDPE) Polyalpha olefins (PAO) Acetylene black |
1,750 |
Chevron Phillips Chemicals Asia Pte Ltd., Singapore | Ryton polyphenylene sulfide (PPS) | 8 |
Chevron
Phillips Singapore Chemicals Pte Ltd., Singapore ーJoint venture (50% interest) |
High-density polyethylene (HDPE) | 860 |
Drilling Specialties Co., Conroe, Texas | Soltex drilling mud additives | 20 |
Houston
Chemical Complex, Pasadena, Texas Phillips Sumika Polypropylene ーJoint venture (50% interest) |
High-density
polyethylene (HDPE) K-Resin styrene-butadiene copolymers (SBC) Polypropylene |
2,200 790 |
Kallo
Compounding Plant, Kallo Beveren, Belgium |
Ryton polyphenylene sulfide (PPS) | 20 |
K R
Copolymer Co. Ltd., Yochon, South Korea Joint venture (60% interest) |
K-Resin styrene-butadiene copolymers (SBC) | 115 |
Marietta Plant, Marietta, Ohio | Polystyrene | 770 |
Orange Chemical Plant, Orange, Texas | High-density polyethylene (HDPE) | 1,170 |
Pascagoula
Chemical Operations, Pascagoula, Miss. |
Benzene Paraxylene |
1,540 |
Performance
Pipe Division Abilene, Texas (fittings) Abbeville, S.C. Bloomfield, Iowa (fittings) Brownwood, Texas Colton, Calif. Fairfield, Iowa Hagerstown, Md. Knoxville, Tenn. Pryor, Okla. Reno, Nev. Startex, S.C. Waxahachie, Texas Williamstown, Ky. Queretado, Mexico Tlaxcala, Puebla, Mexico −Joint venture (49% interest) |
Polyethylene pipe | 580 |
Port Arthur Plant, Port Arthur, Texas | Ethylene Cumene Propylene Benzene Cyclohexane |
1,730 |
Puerto Rico
Core, Guayama, Puerto Rico |
Paraxylene Cyclohexane Orthoxylene |
880 |
Saudi
Chevron Phillips Petrochemical, Al Jubail, Saudi Arabia Joint venture (50% interest) |
Benzene Cyclohexane |
1,060 |
Shanghai
Golden Phillips Petrochemical Co. Ltd., Shanghai, China ーJoint venture (40% interest) |
High-density
polyethylene (HDPE) |
220 |
Specialty
Chemicals, Tessenderlo, Belgium |
Organosulfur | 40 |
St. James Plant, St. James, La. | Styrene | 1,700 |
Sweeny
Chemical & NGL Fractionation, Old Ocean, Texas |
Ethylene Propylene |
4,600 1,250 |
Chevron Phillips Chemical (China) Co. Ltd., Zhangjiangang, China | Polystyrene | 220 |
*Small volume
specialty chemicals
他に カタール(Q-Chem)計画
(Chevron/Phillips統合発表 2000/2/7)
Chevron and Phillips to Form Joint
Venture Creating World-Class Chemical Company
SAN FRANCISCO, Feb. 7, 2000 --
Chevron and Phillips today announced the signing of a letter of
intent and exclusivity agreement to combine their worldwide
chemicals operations into a 50/50 joint venture with more than $6
billion in assets that will be a world-scale competitor in the
petrochemicals industry.
The new company, based in Houston, will combine the olefins,
polymers and aromatics businesses of Chevron and Phillips. The
transaction is expected to close by mid-year, following final
approval by the companies' boards, the signing of definitive
agreements and regulatory review.
"Our two petrochemicals operations are a great fit,"
said Dave O'Reilly, chairman and CEO of Chevron Corp. "This
combination will draw complementary products and technology along
with outstanding employees from both organizations to create a
formidable company, able to compete with the best in this
expanding industry.
"We expect synergy from the combined operations to reduce
annual costs by $150 million and to improve the effectiveness of
capital spending," O'Reilly said.
"Phillips and Chevron are strong companies with excellent
chemicals assets and a shared vision of growth for their
chemicals businesses," said Jim Mulva, chairman, president
and chief executive officer of Phillips Petroleum Co. "This
joint venture creates one of the world's leading chemicals
producers, with a global market presence, excellent growth
prospects and a strong financial position."
The new company will be one of the world's top five producers of
olefins and polyolefins, which are used in the manufacture of
basic chemicals and plastics. Annual ethylene gross capacity will
be 8.2 billion pounds, while annual polyethylene gross capacity
will be 5.5 billion pounds. The venture will also be a global
top-five competitor in the aromatics and styrene businesses.
In the next few months, the joint-venture company will arrange
$1.6 billion of debt financing, and will make one-time cash
payments of $800 million to each parent at or shortly after
closing.
The transaction will be accretive to the net incomes and net cash
flows of both Chevron and Phillips after implementation. Revenues
of the combined chemical businesses for 1999 were nearly $6
billion.
The new venture's annual cost reduction target of $150 million
can be achieved by tapping efficiencies in purchasing and
logistics, enhancing feedstock flexibility, optimizing production
scheduling, improving organizational efficiency and reducing
staffing. Approximately 600 positions are expected to be reduced
from the combined chemical staffs of 6,000 for Chevron and
Phillips.
The new company, to be named later, will be governed by a
six-member board of directors consisting of two Chevron-appointed
directors, two Phillips-appointed directors and the joint
venture's CEO and CFO, who will be non-voting members.
Darry Callahan, president of Chevron Chemical Co., will be one of
the Chevron-appointed directors and will lead Chevron's
integration team. Marty Klitten, Chevron Corp. CFO, will be the
other Chevron-appointed director.
Phillips has appointed Jim Mulva, Phillips' chairman, president
and CEO, and Bill Parker, Phillips' executive vice president of
downstream, to the board of directors.
Jim Gallogly, Phillips' senior vice president of chemicals, has
been named president and chief executive officer, and Kent
Potter, vice president of finance for Chevron Overseas Petroleum
Inc., has been named chief financial officer. Chevron and
Phillips will each make two more appointments to the senior
management team. Management compensation will be tied to
achievement of the cost-savings and other synergies expected of
the new combination.
"This new joint-venture company will have the people, assets
and technology to create one of the premier chemicals companies
of the world," said Gallogly. "I'm excited about the
opportunities this will provide for the future growth of our new
business, and our customers and employees."
Not included in the new combination is Chevron's Oronite
additives business, which holds a global leadership position in
development, manufacture and marketing of fuel and lubricant
additives. Oronite, which will remain an important part of
Chevron's chemical portfolio, did not provide strong synergies
with Phillips' operations.
Chevron Corp., headquartered in San Francisco, is a leading
energy and chemical company, operating in about 90 countries
through 500 subsidiaries, partnerships, affiliates, and other
entities. Chevron, which employs 31,000 people worldwide, has
about $40 billion in assets. Total revenue in 1999 was $36.6
billion.
Chevron Chemical Co. produces commodity petrochemicals, plastics
and additives in plants in nine U.S. states and in Brazil,
France, Japan, Mexico, Saudi Arabia and Singapore.
2004/11/1 Chevron Phillips
Chevron Phillips Chemical Announces Its Intention To Build A New
Ryton® PPS Plant
http://www.cpchem.com/press_releases_6952.asp
Chevron Phillips Chemical Company
LP (Chevron Phillips Chemical) announces its intention to build a
new 22 million pound-per-year capacity polyphenylene sulfide
(PPS) plant. Startup is anticipated in early 2007. The location
of the new plant has not yet been chosen.
“With the demand for Ryton® PPS increasing, we look forward to
positioning our company to provide even better service to our
existing and future customers,” said Mike McDonnell, Ryton® PPS General Manager for Chevron Phillips
Chemical.
Ryton® PPS is Chevron
Phillips Chemical’s high
performance engineering resin known for its dimensional stability
and resistance to corrosive and high-temperature environments.
With a thirty-plus year history, Ryton® PPS is recognized as the world’s premier product for demanding plastic
applications. Ryton® PPS
is used in injection molding and extrusion applications for
computer components, automobile parts, and various electrical
appliances.
About Chevron Phillips Chemical Company LLC
Chevron Phillips Chemical Company LLC with its affiliates is one
of the world’s top
producers of olefins and polyolefins and a leading supplier of
aromatics, alpha olefins, styrenics, specialty chemicals, piping
and proprietary plastics. The company has total assets in excess
of $6 billion and is owned equally by ChevronTexaco Corporation
and ConocoPhillips. For more information about Chevron Phillips
Chemical, visit www.cpchem.com.
ConocoPhillips to Acquire
Burlington Resources in $35.6 Billion Transaction
http://www.conocophillips.com/newsroom/news_releases/121205_burlington.htm
Burlington Resources' Gas
Reserves and Production Provide Excellent Strategic Fit With
ConocoPhillips' Global Energy Portfolio
ConocoPhillips to Become a Leading Natural Gas Producer in North
America
ConocoPhillips (NYSE: COP) and Burlington Resources Inc. (NYSE:
BR) announced today they have signed a definitive agreement under
which ConocoPhillips will acquire
Burlington Resources in a transaction valued at $35.6 billion. The transaction, upon approval by
Burlington Resources shareholders, will provide ConocoPhillips
with extensive, high quality natural gas exploration and
production assets, primarily located in North America. The
Burlington Resources portfolio provides a strong complement to
ConocoPhillips’ global portfolio of integrated
exploration, production, refining and energy transportation
operations, thereby positioning the combined company for future
growth.
Under the terms of the agreement, Burlington Resources
shareholders will receive in the merger $46.50 in cash and 0.7214
shares of ConocoPhillips common stock for each Burlington
Resources share they own. This represents a transaction value of
$92 per share, based on the closing price of ConocoPhillips
shares on Friday, December 9, 2005, the last unaffected day of
trading prior to this announcement. The transaction preserves
ConocoPhillips’ strong financial base, flexibility
and cash flow, and enables the company to continue its aggressive
capital investment program, including the funding of a
substantial Exploration and Production and Refining program.
Burlington Resources is one of the world's leading independent
exploration and production companies, and holds one of the
industry's leading positions in North American natural gas
reserves and production. At December 31, 2004, Burlington
Resources had total reserves of 2,001 MMBOE (million barrels of
oil equivalent). In addition, Burlington Resources has estimated
2005 production of approximately 475 MBOE/d (thousand barrels of
oil equivalent per day), and access to significant conventional
and unconventional resources.
Together, ConocoPhillips and Burlington Resources will have:
* Pro-forma reserves of 10.5 BBOE as of December 31, 2004,
excluding 0.3 BBOE associated with ConocoPhillips’
Syncrude
operations, of which 52 percent is in North America; and
* Pro-forma 2005 production of 2.3 MMBOE/d, including LUKOIL and
Syncrude, of which 50 percent is in North America.
Jim Mulva, Chairman and Chief Executive Officer of
ConocoPhillips, said: “We are very pleased to have
reached this agreement with Burlington Resources, and are excited
about the opportunities it provides our respective companies and
shareholders. With this transaction, ConocoPhillips will expand
our portfolio of high quality, low-risk, long-lived gas reserves,
and become a leading producer of natural gas in North America.
The transaction also enhances ConocoPhillips production growth
and North American gas supply position both in the near-term,
through projects involving conventional and unconventional
resources, and in the long-term through LNG (liquefied natural
gas) and Arctic gas projects. In addition, the broader Burlington
Resources portfolio is an excellent complement to our integrated
oil and gas portfolio, and significantly increases our weighting
in OECD (Organization for Economic Co-operation and Development)
country assets. The transaction will not only provide Burlington
Resources shareholders with a meaningful immediate premium to the
value of their shares, but also enables them to continue to
benefit as investors in the future growth of ConocoPhillips. We
will continue to invest in our growth for the benefit of our
current and future investors. Burlington Resources is an
efficient, well-run exploration and production organization, and
we look forward to an exciting future of growth together.”
Bobby S. Shackouls,
Chairman, President and Chief Executive Officer of Burlington
Resources, said, “The combination of ConocoPhillips
and Burlington Resources recognizes the substantial value we have
created and acknowledges the success of our employees in building
a great company with a strong asset base. Of equal importance,
this transaction allows our shareholders, customers and employees
to participate in the future growth of ConocoPhillips, a company
that has the scale and scope to supply consumers from every facet
of the oil and gas industry more efficiently.”
Based on the
closing market prices for the shares of both companies December
9, and their debt levels as of September 30, 2005, the
combination of ConocoPhillips and Burlington Resources would have
an enterprise value of $135 billion ($106 billion of equity; $29
billion of net debt and preferred securities). Existing
ConocoPhillips shareholders will own about 83 percent of
ConocoPhillips following the transaction, and Burlington
Resources shareholders will own approximately 17 percent.
ConocoPhillips will fund its acquisition of Burlington Resources
through existing cash on hand, existing credit facilities, and
new additional bank and bond debt. The company plans to use cash
from operations in the years ahead to reduce its outstanding
debt.
The transaction, based on 2006 First Call estimates, is expected
to be accretive to near-term production growth and cash flow per
share, and slightly dilutive to ConocoPhillips near-term earnings
per share. ConocoPhillips expects to achieve synergies and
pre-tax cost savings of approximately $375 million annually after
the operations of the two companies are fully integrated. These
savings will result largely from reducing corporate expenses,
optimizing the company’s exploration portfolio, and
reducing operating expenses.
Upon completion of the merger, Mr. Shackouls and Steven J.
Shapiro, Executive Vice President, Finance and Corporate
Development, will retire, and Randy L. Limbacher, currently
Burlington Resources Executive Vice President and Chief Operating
Officer, will become Executive Vice President responsible for
North and South America, reporting to Mr. Mulva. William B.
Berry, presently ConocoPhillips’ Executive Vice
President-Exploration and Production, will become Executive Vice
President responsible for Europe, Asia, Africa and the Middle
East, also reporting to Mr. Mulva. Mr. Shackouls and William E.
Wade, currently an independent director of Burlington Resources,
will join ConocoPhillips’s Board of Directors. A transition
team has been formed and will be led by Mr. Limbacher of
Burlington Resources, and John E. Lowe, ConocoPhillips’
Executive Vice
President-Planning, Strategy and Corporate Affairs.
The acquisition is conditioned upon, among other things, the
approval of Burlington Resources shareholders and customary
regulatory approvals. The transaction is expected to be completed
in the first half of 2006.
Goldman, Sachs & Co. and Citigroup Global Markets Inc. acted
as financial advisors, and Wachtell, Lipton, Rosen & Katz
acted as legal counsel to ConocoPhillips. Morgan Stanley and J.P.
Morgan Securities Inc. acted as financial advisors, and Fried,
Frank, Harris, Shriver & Jacobson LLP acted as legal counsel
to Burlington Resources.
About Burlington Resources
Burlington Resources ranks among the world's largest independent
oil and gas companies, and holds one of the industry’s leading positions in North
American natural gas reserves and production. Headquartered in
Houston, Texas, the company conducts exploration, production and
development operations in the U.S., Canada, the United Kingdom,
Africa, China and South America. For additional information see
the Burlington Resources Web site at www.br-inc.com.
Plans to Build New Ryton(R) PPS Plant in Borger, Texas Finalized
Chevron Phillips Chemical
Company LP (Chevron Phillips Chemical) announced today that it
will proceed with plans to build a 22 million
pound-per-year polyphenylene sulfide (PPS) plant in Borger, Texas. Built next to Chevron Phillips
Chemical’s existing PPS plant in Borger,
the new facility will expand the company’s total PPS capacity at the site
to approximately 44 million pounds per year. The new plant will share some
infrastructure and operations with the existing Ryton(R) PPS
plant.
The construction process begins immediately, with project
completion anticipated in early 2009.
Jacobs Engineering has been selected to provide engineering and
procurement services, while Zachry Construction Corporation will
provide the construction services for the project.
“The
decision to build a new Ryton(R) PPS plant in Borger is a major
step forward for our specialty chemicals business,”
said Ray Wilcox,
president and chief executive officer of Chevron Phillips
Chemical. “As a global leader in PPS
technology, this new plant will secure our position in the
marketplace for many years to come.”
“This project
solidifies Borger, Texas as the worldwide hub for Chevron
Phillips Chemical’s PPS polymer business,”
said Greg Garland,
senior vice president of planning and specialty products.
Like the existing Ryton(R) PPS plant, much of the PPS polymer
produced in Borger will be sent to Chevron Phillips Chemical’s compounding facilities in
LaPorte, Texas; Kallo, Belgium; and Tuas, Singapore where it is
compounded with glass fibers and minerals to develop resins with
unique performance features.
“The
market for polyphenylene sulfide is growing and our product is
well-suited for many new applications,”
said Mike
McDonnell, general manager of Chevron Phillips Chemical’s Engineering Polymers group. “The new plant will give us the
capacity needed to capitalize on these new market segments.”
Ryton(R) PPS is
Chevron Phillips Chemical’s high performance engineering
resin known for its dimensional stability and resistance to
corrosive and high-temperature environments. With a thirty-plus
year history, Ryton(R) PPS is recognized as one of the world’s premier products for demanding
plastic applications. Ryton(R) PPS is used in injection molding
and extrusion applications for computer components, automobile
parts, and various electrical appliances.
About Chevron Phillips Chemical
Chevron Phillips Chemical Company LLC and its affiliates produce
chemicals that are essential to manufacturing over 70,000
consumer and industrial products. In operation for over 60 years,
Chevron Phillips Chemical’s Borger Plant produces Ryton(R)
PPS and over 200 specialty chemicals. These products are used in
a wide variety of applications, including pharmaceutical,
agricultural, electrical, industrial, and consumer products. For
more information about Chevron Phillips Chemical, visit
http://www.cpchem.com/.