BCI, CP Kelco sign deal for joint gum factory in Jubail

Updated 16 September 2013
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BCI, CP Kelco sign deal for joint gum factory in Jubail

Basic Chemical Industries Co. (BCI) has signed a memorandum of understanding with CP Kelco for jointly building and operating a xanthan gum facility to be located in Jubail.
Subject to further engineering feasibility, the plant will have a production capacity of between 5,000 and 10,000 tons. This capacity will be dedicated to oilfield application markets both within the Kingdom as well as for export. The main client for local consumption of the gum is Saudi Aramco, the world largest oil producer, and Saudi Arabia National Oil Company.
CP Kelco headquartered in Atlanta, Georgia, USA, is a major producer of specialty hydrocolloids with offices and facilities across the globe. Featuring an extensive range of specialty hydrocolloid solutions, CP Kelco leverages its capabilities to bring concepts and ideas to real-world products in a broad range of applications.
Serving over 100 countries, CP Kelco established the quality and safety standards the industry is measured against. CP Kelco ingredients touch a wide variety of industrial applications, consumer and household products, tailored to meet the needs of regional consumers. Key product lines are gellan gum, pectin, cellulose gum, xanthan gum, carrageenan, arboxymethyl cellulose, diutan gum and microparticulated whey protein concentrate, as well as other unique biopolymers.
BCI headquartered in Dammam has been listed in Saudi stock market (Tadawul) since 2008. The company has been producing basic chemicals, including chlorine, caustic soda and hydrochloric acid, and engaging in two joint ventures producing specialty chemicals.
The main clients of BCI are major industry players such as Saudi Aramco, SABIC, Procter & Gamble and major manufacturers in the GCC as well as government bodies. BCI, as parent for six companies, has wide ranging chemicals serving most of the industrial sectors.


Oil prices rise on Libyan export interruption, but markets remain weak

Updated 11 December 2018
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Oil prices rise on Libyan export interruption, but markets remain weak

  • The rise came after crude prices dropped by 3 percent the session before amid ongoing weakness in global stock markets and concerns that slowing oil demand-growth could erode supply cuts
  • Crude futures have lost around a third of their value since early October amid the financial market slump and an emerging oil supply overhang

SINGAPORE: Oil prices edged up on Tuesday after Libya’s National Oil Company declared force majeure on exports from the El Sharara oilfield, which was seized at the weekend by a local militia group.
Despite that, overall sentiment on oil prices remained weak amid worries over global stock markets and doubts that planned supply cuts led by producer club OPEC will be enough to rein in oversupply.
International Brent crude oil futures were at $60.19 per barrel at 0336 GMT, up 19 cents, or 0.3 percent, from their last close.
US West Texas Intermediate (WTI) crude futures were at $51.16 per barrel, up 16 cents, or 0.3 percent.
Libya’s National Oil Company (NOC) late on Monday declared force majeure on exports from the El Sharara oilfield, the country’s biggest, which was seized at the weekend by a militia group.
NOC said the shutdown would result in a production loss of 315,000 barrels per day (bpd), and an additional loss of 73,000 bpd at the El Feel oilfield.
The rise came after crude prices dropped by 3 percent the session before amid ongoing weakness in global stock markets and concerns that slowing oil demand-growth could erode supply cuts announced last week by the Organization of the Petroleum Exporting Countries (OPEC) and some non-OPEC producers including Russia.
Crude futures have lost around a third of their value since early October amid the financial market slump and an emerging oil supply overhang.
In a show of no confidence, money managers cut their bullish wagers on crude to the lowest in more than two years in the week ending Dec. 4, the US Commodity Futures Trading Commission (CFTC) said on Monday.
The financial speculator group cut its combined futures and options position in New York and London by 25,619 contracts to 144,775 during the period. That is the lowest level since Sept. 20, 2016.
In physical markets, Kuwait and Iran this week both reduced their January crude oil supply prices to Asia
“There remains a lot of uncertainty if the production cut is thick enough to make a significant dent in global supply,” said Stephen Innes, head of trading for Asia-Pacific at futures brokerage Oanda in Singapore.
“The general risk-off tone in global markets and the stronger dollar ... are contributing to the selling pressure.”
The OPEC-led group of oil producers last Friday announced a supply cut of 1.2 million barrels per day (bpd) in crude oil supply from January, measured against October 2018 output levels.