What’s happening in Russia with Exxon and Russia Petrochemics
Total Petroleum Corporation has acquired petro chemicals maker Argus Petrochemical in a $1.9 billion deal that will add to Exxon’s portfolio of oil- and gas-related businesses.
The deal includes oilfield services and engineering services.
Exxon has a long history of acquiring companies in Russia that make petroleum products.
The Russian state oil company, Rosneft, acquired Exxon’s Petrosanovskoyepetrochemical plant in 2016.
In May, the Russian state-owned energy company Rosneftegas also announced it was buying a number of Exxon petro chemical companies.
“As we continue to grow, we will leverage our assets and continue to invest in strategic initiatives to create a diversified supply chain for our global customers,” Exxon CEO Rex Tillerson said in a statement.
Exxon said in an e-mailed statement that the acquisition of Argus “will enable us to continue to focus on our core business and focus on the long-term opportunities.”
Exxon has been working to diversify its business after its acquisition of Petrosen in the past year.
The company has also been building a pipeline of crude oil through a joint venture with Russian oil giant Rosnefer to bypass Russia’s tight supply of Russian crude oil.
The pipeline, known as the Trans-Siberian Pipeline, is the main artery for Russian crude through the Arctic.
Exxon is also looking to diversification by building a refinery in Texas and a refineries in Europe, Japan and China.
In 2017, Exxon said it would buy up to $300 billion worth of crude in a move that analysts said would boost its ability to produce oil in Europe and Asia.
The oil-and-gas sector in Russia is the second-largest in the world after the oil and gas industry, with about $20 trillion in assets.
Russia is one of the world’s top producers of crude and natural gas, accounting for about half of all global production.
Exxon was founded in 1905 by William “Bill” Exxon Jr., the son of former President Theodore Roosevelt.
Exxon’s holdings include natural gas and oil companies, such as Exxon Mobil Corp. and Royal Dutch Shell Plc.