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Oil and gas industry announcements: 6 January 2015

Hydrocarbon Engineering,


Cameron

Cameron has announced that it has completed the previously announced sale of its centrifugal compression business to Ingersoll Rand for cash consideration of approximately US$850 million and after tax proceeds of approximately US$600 million.

Chevron Phillips Chemical

Chevron Phillips Chemical Company has announced that it has completed the sale of its Ryton polyphenylene sulfide (PPS) business to Solvay’s Global Business Unit (GBU) Speciality Polymers (Solvay) for US$220 million. As part of the transaction, Solvay purchased the Ryton PPS unit in Chevron Phillips Chemical’s plant in Borger, Texas; the pilot plant along with the PPS research and development assets in Bartlesville, Oklahoma; the compounding plant in Kallo-Beveren, Belgium; and certain intellectual property relating to the Ryton PPS business. The compounding plant in La Porte, Texas, will remain part of Chevron Phillips Chemical and will be operated by Chevron Phillips Chemical exclusively for Solvay for some period of time. Nearly all employees of Chevron Phillips Chemical’s Ryton PPS business have either joined Solvay or were deployed to other parts of the organisation.

Elliott

Elliott Company and MHI Compressor International Corporation have announced that the parties have reached an agreement ending a lawsuit filed by Elliott Company in 2013 in the Southern District of Texas. Elliott Company commenced an action against MHI and Elliott’s former employee, after Elliott learned that its former employee had taken Elliott’s confidential information to his new employer, MHI.

The parties have agreed to amicably resolve this matter to void the burden and expense of continued litigation. The parties have also entered into a consent order in which MHI has agreed not to use the confidential Elliott information that has been taken by Elliott’s former employee and disseminated at MHI and related entities. MHI will remain a robust compliance program to avoid such events from recurring and has agreed that a certification will be provided confirming Elliott information has been permanently deleted from the systems of MCO-I and any of its related entities that received such information, and they will address such issues with their compliance training.

Oil and Gas Authority

Andy Samuel has officially begun his new role of Chief Executive of the Oil and Gas Authority (OGA). The establishment of the OGA was an integral part of the recommendations made by Sir Ian Wood as part of the review into maximising the UK’s offshore oil and gas resources. The government fast tracked the recommendations of the Wood Review to maximise the potential of the North Sea and make sure the whole of the UK benefits.

Rentech

Rentech, Inc. has announced compensation details for its newly appointed CEO, Keith B. Forman, including inducement equity awards. Forman’s compensation package is designed to maximise pay for performance and align his realised compensation with shareholder return. Under the terms of employment, Forman will receive an annual salary of US$200 000. He received an inducement award of performance share units (PSU), under the terms of the PSUs, Rentech’s total shareholder return (TSR) over a period of up to four years must be at least 50% for any shares to be earned under the award. The TSR must be at least 100% in order for Forman to earn the target of 1 008 265 shares. Forman also received an inducement grant of an option to purchase up to 1 102 491 shares of Rentech’s common stock at an exercise price of US$1.24 /share. 25% of the option will vest on December 9 2015, and the balance will vest in equal monthly increments thereafter for the following three years. The option has a five year term. Forman will not be eligible for cash bonus in 2015.

Suretank

Suretank has announced the acquisition of Prior Diesel, an oil services company based in Great Yarmouth, UK. The acquisition was made with the support of Ulster Bank’s Corporate and Institutional Banking team.

Valence Group

The Valence Group has advised CBPE Capital on its sale of Warwick Chemicals to Lubrizol Corporation, a Berkshire Hathaway company, which closed on December 31 2014. Warwick Chemicals will retain its company name and will become part of Lubrizol Advanced Materials, reporting into Lubrizol’s personal and home care business. This acquisition will complement Lubrizol’s existing home care product line, strengthening its strategy of providing high value technology solutions to its global customers.

World Fuel Services

World Fuel Services Corporation has announce that it has appointed Jorge L. Benitez to the Board of Directors of the company. Benitez retired from Accenture in August 2014 after over 33 years of service, the last three years of which, Benitez served as Chief Executive of North America, where he had primary responsibility for Accenture’s business and operations in North America. From September 2006 – August 2011, Benitez served as COO, Products Operating Group, the largest of Accenture’s five operating groups, where he was responsible for executing the business strategy and ensuring operational excellence across a wide set of consumer industry groups.


Edited from press releases by Claira Lloyd

Read the article online at: https://www.hydrocarbonengineering.com/refining/06012015/oil-gas-industry-global-announcements/


 

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