Gazprom Neft and SIBUR have consolidated 100 percent of the charter capital in the Poliom LLC polypropylene plant in Omsk, with the Gazprom Neft—SIBUR joint venture — Sibgazpolymer JSC — signing an agreement on the acquisition of a 50-percent interest in the charter capital of Poliom LLC, owned by the Titan Group.
Following the completion of all corporate and registration procedures, Sibgazpolymer JSC has become the sole participant in Poliom LLC, which will be managed jointly by Gazprom Neft and SIBUR.
Launched in 2012, Poliom is one of Russia’s largest polypropylene producers. In 2014, Poliom became the basis for a joint venture between Gazprom Neft (25 percent), SIBUR (25 percent) and the Titan Group (50 percent). The plant has capacity to produce 218,000 tonnes of high-technology product every year, with a range covering 100 brands of polypropylene. The key feedstock for production — propane-propylene fraction — is sourced from the Gazprom Neft Omsk Refinery, with SIBUR managing the distribution of end-products throughout Russia and the CIS. The facility is certified as complying with international standards, and deploys best-practice R&D solutions and technologies to ensure waste-free production.
Levan Kadagidze, Head of the Commercial Directorate at Gazprom Neft, commented: “Increasing our interest in Poliom marks an important milestone in implementing Gazprom Neft’s long-term strategy, a key element of which involves developing petrochemical production. Integrating assets in the refining and petrochemical sectors will allow us to improve efficiency in using refinery feedstocks to produce high value-added products, while also boosting our competitive edge both domestically and internationally through stronger technological ties with SIBUR”.
Sergey Komyshan, Executive Director and a member of the Management Board, SIBUR, added: “SIBUR is committed to developing its polymer business as demand in Russia and all over the world keeps growing, ahead of the global economy. Thanks to their superior qualities, synthetic materials are well on the way to replacing their traditional counterparts, while also offering new opportunities in transportation, healthcare, robotics and other areas. This acquisition of a majority interest in Poliom LLC will allow us to focus on its development, as well as on product distribution. SIBUR has unique expertise that will allow it to expand the facility’s polymer range, as well as meeting demand from businesses in various sectors, by bringing streamlined product solutions to market. I would also like to thank the Titan Group for our long-standing and successful cooperation.”
Mikhail Sutyaginsky, Chairman of the Board of Directors, Titan Group, commented: “The Titan Group’s vast expertise in building complex industrial facilities, and the standard of its technological solutions and production engineering, have made the Omsk polypropylene plant an enticing and valuable asset for two of Russia’s major companies — Gazprom Neft and SIBUR. Poliom has robust process control systems, meaning its products are fully compliant with the standards of the world’s top polymer goods manufacturers. I would stress that the Titan Group will continue developing its own industrial assets, including putting in place production facilities to increase the conversion factor in hydrocarbon refining, and producing a wide range of organic chemical products to replace imported alternatives. Gazprom Neft and SIBUR will remain our strategic partners on both new and existing projects”.
Gazprom Neft PJSC is a vertically integrated oil company, primarily involved in oil and gas exploration and production, refining, and the production and sale of oil products. Gazprom Neft’s corporate structure comprises more than 70 production, refining and sales subsidiaries throughout Russia, the CIS, and abroad.
Gazprom Neft is one of the world’s Top-10 public companies by proven liquid hydrocarbon reserves, and a global leader in its rapidity in reserves replacement. In terms of production and refining volumes it stands among the top three largest companies in Russia. Total production in 2018 reached 92.9 million tonnes of oil equivalent (mtoe), with refining volumes of 42.9 million tonnes.
Net profit at Gazprom Neft reached RUB376.7 billion in 2018, a 49-percent increase by 2017. The company is a market leader in terms of both financial growth and various efficiency metrics, including its Return on Average Capital Employed (ROACE).
SIBUR leads Russia’s petrochemicals industry, and is one of the largest companies in this sector worldwide, with more than 26,000 employees. The company’s integrated business model allows SIBUR to produce highly competitive products used in the production of consumer goods as well as in the automotive, construction, energy, petrochemicals and other industries in 80 countries worldwide.
SIBUR processes the by-products of oil and gas production, thus helping to reduce the CO2 emissions that arise from their combustion. SIBUR processed 22.3 billion cubic metres of associated petroleum gas (APG) in 2018, reducing greenhouse emissions by 72 million tonnes — equal to the annual CO2 emissions of an average European country.
In 2018, SIBUR reported revenue of USD9.1 billion and EBITDA of USD3.2 billion.
