*As Total calls off plan to buy Ghana’s Occidental asset
*Signs plastic recycling agreement with PureCycle Technologies
Lagos — Offers for Nigerian Egina have jumped to dated Brent plus $2.50, according to market report.
This week’s schedule showed that price of the crude grade increased after lingering at dated Brent flat since outbreak of the virus.
Report says sellers of Nigerian oil expressed optimism that resumed mobility amid the easing of lockdowns globally would boost demand, even as global refining gradually returns this month.
Even though light sweet crude is expected to experience higher demand henceforth following cuts by OPEC+ and other factors, European traders said there was no immediate sign of higher sale prices as volatile markets and long voyage times made the value of African oil unpredictable.
Meanwhile, French oil company, Total has called off a plan to acquire Occidental Petroleum’s assets in Ghana.
In August 2019, Total and Occidental Petroleum entered into a Purchase and Sale Agreement, PSA in order for Total to acquire Anadarko’s assets in Africa.
Under this agreement, Total and Occidental have since completed the sale and purchase of the Mozambique and South Africa assets.
The PSA provided that the sale of the Ghana assets was conditional upon the completion of the Algeria assets’ sale.
However, Occidental later informed Total that, as part of an understanding with the Algerian authorities on the transfer of Anadarko’s interests to Occidental, Occidental would not be in a position to sell its interests in Algeria.
Given the extraordinary market environment and the lack of visibility that the Group faces, and in light of the non-operated nature of the interests of Anadarko in Ghana, Total in a statement on Monday said it has decided not to pursue the completion of the purchase of the Ghana assets and, as a consequence, to preserve the Group’s financial flexibility.
“This decision not to pursue the completion of the purchase of the Ghana assets consolidates the Group’s efforts in the control of its net investments this year and provides financial flexibility to face the uncertainties and opportunities linked to the current environment,” said Patrick Pouyanné, Total Chairman and CEO.
Total shares rose 7.4% on Monday.
Signs plastic recycling agreement with PureCycle Technologies
The firm on Tuesday said it has signed an agreement with PureCycle Technologies to develop a strategic partnership in plastic recycling.
As part of the agreement, Total said it will purchase part of the output of PureCycle Technologies’ future facility in the United States and to assess the interest of developing a new plant together in Europe.
PureCycle Technologies uses innovative, patented technology to separate color, odor and any other contaminants from plastic waste feedstock to transform it into virgin-like recycled polypropylene. The company, which will begin construction on its first plant in Ohio (U.S.A.) this year, will produce 48,000 tons of recycled polypropylene.
“This partnership is an important new milestone for Total as it strengthens the Group’s position in chemical recycling. This first partnership in the United States opens new perspectives for addressing the challenge of the circular economy and achieving our ambition of producing 30% recycled polymers by 2030”, said Valérie Goff, Senior Vice President, Polymers at Total.
“Total possesses world-class expertise in the research, development, and production of polypropylene. We believe Total represents the best possible strategic partner for PureCycle as we strive to scale this very promising and transformational technology globally. The introduction of recycled polypropylene that can be used interchangeably with virgin resin will have an enormously beneficial impact on the global plastics circular economy. Total shares our passion to make this happen and we are very pleased to have them as a strategic partner”, commented Mike Otworth, CEO of PureCycle Technologies.
Total and plastics recycling
Total has been deeply committed to recycling plastics and intends to produce 30% recycled polymers by 2030.
To achieve that goal, it is working on all types of recycling to improve the properties and uses of recycled plastics:
- Total is a leader in innovative polymers, pioneering with the production of some fifteen grades of polypropylene and polyethylene containing at least 50% recycled materials.
- Total has also become involved in mechanical recycling by acquiring Synova, French leader in the production of high-performance recycled polypropylene for the automotive industry. The affiliate’s output will be doubled to reach 40,000 tons by 2021.
- In the area of chemical recycling, Total has joined forces with Citeo, Recycling Technologies, Nestlé and Mars in December 2019 to develop chemical recycling of plastics in France.
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