Kazakhistan not believes in LyondellBasell’s paying its shares
Kazakhstan, Astana, March 14 / Trend , K.Arynova/
The Kazakh government doubts whether LyondellBasell will pay its share in the Kazakhstan Petrochemical Industries Ltd project (KPI - integrated gas-chemical complex in Atirau), Energy and Mineral Resources Minister Sauat Minbayev said.
"They [LyondellBasell], really, have not paid their share [24.5 percent]," Minbayev said. "We doubt whether they will pay it."
On March 3 at a governmental meeting, the Energy and Mineral Resources Minister said LyondellBasell company refuses from it shares in the project to form the integrated petrochemical complex in the Atirau region.
"There is a problem with foreign shareholder - LyondellBasell which has all licenses and is the qualified participant of this market," Minbayev said. "Under a difficult situation, the company refused from its shares in the project at the moment [...]."
Moreover, the minister said the Kazakh side is looking for other potential participants of the project at the moment. Such proposals were made to the Indian companies, he said.
"An issue on Indian companies' participation is currently under discussions. The Indian side is interested in it and so are we," Minbayev told journalists after a meeting of the Kazakh-Indian Intergovernmental commission on trade and economic cooperation.
This week, LyondellBasell company has spread a press-release that it confirms its participation in the project to create the integrated petrochemical complex in the Atirau region.
"LyondellBasell Industries which is a partner of SAT&Co and "KazMunayGaz Production Exploring" on the Kazakhstan Petrochemical Industries Ltd. project confirmed its participation in development and construction of the integrated petrochemical complex and gas separator facility in the Atirau region," the company said.
It is planned that capacity of the complex will be 800,000 tons of polyethylene and 400,000 tons of polypropylene each year. The project costs $5.3 billion.
LyondellBasell was formed in 2007 when the Dutch chemical company Basell International Holdings BV paid $12.7 billion for Lyondell Chemical Co. At that time, it was 20-percent premium to a market price of the American company's stakes. As a result, LyondellBasell was encumbered with giant debts.
LyondellBasell is the world's giant producer of polypropylene and high polyolefin, as well as leading providers of polyethylene and catalysts. The company is located in the Netherlands, but its business is concentrated in the U.S.
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