Phillips 66: Melaka Refinery

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===Melaka Refinery===
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==Melaka Refinery==
[[Image:Melaka refinery.jpg|thumb|right|400px|''Melaka Refinery'''  The PSR-2 refinery in Melaka, Malaysia, is a joint venture with Petronas, the Malaysian state oil company. Phillips 66 owns a 47 percent interest in the joint venture. The medium, highsulfur crude oil processed by the refinery is sourced mostly from the Middle East. The refinery produces a full range of refined petroleum products and capitalizes on hydrocracking and coking technology to upgrade low-cost feedstocks to higher-margin products.  Photo Credit: [http://www.hydrocarbons-technology.com/projects/melaka/melaka1.html Hyrdrocarbons Technology] ]]
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[[Image:Melaka refinery.jpg|thumb|right|550px|''Melaka Refinery'''  The PSR-2 refinery in Melaka, Malaysia, is a joint venture with Petronas, the Malaysian state oil company. Phillips 66 owns a 47 percent interest in the joint venture. The medium, highsulfur crude oil processed by the refinery is sourced mostly from the Middle East. The refinery produces a full range of refined petroleum products and capitalizes on hydrocracking and coking technology to upgrade low-cost feedstocks to higher-margin products.  Photo Credit: [http://www.hydrocarbons-technology.com/projects/melaka/melaka1.html Hyrdrocarbons Technology] ]]
====News and Views from the Melaka Refinery====
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==News and Views from the Melaka Refinery==
  
=====November 12, 2014: Phillips to Sell Maleka Refinery for $635 Million=====
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===November 12, 2014: Phillips to Sell Maleka Refinery for $635 Million===
 
FuelFix reported on November 12, 2014 that Phillips has made a deal to sell its 47-percent stake in a Malaysian refinery for $635 million in cash that is expected to close at the end of 2014. “This divestiture allows us to redeploy resources to more strategic areas of our business,” said Larry Ziemba, executive vice president of refining for Phillips 66, in a written statement. Dean Acosta, a spokesman for Phillips 66, said the firm won’t have a refining presence in Asia after the deal closes. “We continually evaluate the assets in our portfolio to identify opportunities to significantly enhance returns,” Acosta said in an email. “We do that through portfolio management as well as improving margins on our current assets.”<ref>[http://fuelfix.com/blog/2014/11/12/phillips-66-to-sell-refining-stake-in-asia-for-635m/ FuelFix. "Phillips 66 to sell refining stake in Asia for $635M"  November 12, 2014.]</ref>
 
FuelFix reported on November 12, 2014 that Phillips has made a deal to sell its 47-percent stake in a Malaysian refinery for $635 million in cash that is expected to close at the end of 2014. “This divestiture allows us to redeploy resources to more strategic areas of our business,” said Larry Ziemba, executive vice president of refining for Phillips 66, in a written statement. Dean Acosta, a spokesman for Phillips 66, said the firm won’t have a refining presence in Asia after the deal closes. “We continually evaluate the assets in our portfolio to identify opportunities to significantly enhance returns,” Acosta said in an email. “We do that through portfolio management as well as improving margins on our current assets.”<ref>[http://fuelfix.com/blog/2014/11/12/phillips-66-to-sell-refining-stake-in-asia-for-635m/ FuelFix. "Phillips 66 to sell refining stake in Asia for $635M"  November 12, 2014.]</ref>
  
=====October 29, 2014: Sale of Maleka Refinery is an Ongoing Process=====
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===October 29, 2014: Sale of Maleka Refinery is an Ongoing Process===
 
Greg Garland told analysts during the third quarter earnings conference call on October 29, 2014 that the sale of the Melaka Refinery is an ongoing process. "We have an ongoing process at Melaka. And I think our expectation is certainly end of this year, first quarter next year, that we'll complete that process."<ref>[http://investor.phillips66.com/files/doc_presentations/2014/Earnings/PSX-Transcript-2014-10-29T15_00.pdf Phillips 66.  "PSX - Q3 2014 Phillips 66 Earnings Call" October 29, 2014.]</ref>
 
Greg Garland told analysts during the third quarter earnings conference call on October 29, 2014 that the sale of the Melaka Refinery is an ongoing process. "We have an ongoing process at Melaka. And I think our expectation is certainly end of this year, first quarter next year, that we'll complete that process."<ref>[http://investor.phillips66.com/files/doc_presentations/2014/Earnings/PSX-Transcript-2014-10-29T15_00.pdf Phillips 66.  "PSX - Q3 2014 Phillips 66 Earnings Call" October 29, 2014.]</ref>
  
=====August 29, 2014: Second Unit Shut Down at Maleka Refinery=====
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===August 29, 2014: Second Unit Shut Down at Maleka Refinery===
 
MSN reported on August 29, 2014 that Petronas is running the 100,000 barrels-per-day (bpd) Malacca refinery it jointly owns with US oil company Phillips 66 at a lower rate than usual after unexpectedly shutting a secondary unit. The refinery's crude distillation unit (CDU) will be running at a lower operating rate than normal from August 21 to September 8 while the secondary unit is being repaired, one of the sources said. Petronas operates two CDUs at the Malacca petroleum complex that run as standalone operations. It solely owns a 100,000-bpd CDU that mainly processes sweet crude.<ref>[http://news.malaysia.msn.com/tmi/petronas-abruptly-shuts-secondary-refining-unit-say-sources MSN.  "Petronas abruptly shuts secondary refining unit, say sources"  August 29, 2014.]</ref>
 
MSN reported on August 29, 2014 that Petronas is running the 100,000 barrels-per-day (bpd) Malacca refinery it jointly owns with US oil company Phillips 66 at a lower rate than usual after unexpectedly shutting a secondary unit. The refinery's crude distillation unit (CDU) will be running at a lower operating rate than normal from August 21 to September 8 while the secondary unit is being repaired, one of the sources said. Petronas operates two CDUs at the Malacca petroleum complex that run as standalone operations. It solely owns a 100,000-bpd CDU that mainly processes sweet crude.<ref>[http://news.malaysia.msn.com/tmi/petronas-abruptly-shuts-secondary-refining-unit-say-sources MSN.  "Petronas abruptly shuts secondary refining unit, say sources"  August 29, 2014.]</ref>
  
=====February 14, 2014: Garland Says Phillips Expects to Sell Maleka Refinery in 2014=====
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===February 14, 2014: Garland Says Phillips Expects to Sell Maleka Refinery in 2014===
 
Greg Garland told security analysts at the Credit Suisse Global Energy Summit on February 12, 2014 that Phillips expects to sell Maleka and Whitegate in 2014. "We've gotten very good at selling the good things. I told Clayton we're going to have to get very good at selling the not-so-good things. Certainly [we] have a process underway  with Whitegate.  We have a process underway  with Melaka. What I would say in that you should expect that we will draw those processes to a conclusion in 2014.<ref>[http://www.phillips66.com/EN/investor/presentations_ccalls/Documents/2014-02-12-credit-suisse-transcript.pdf Credit Suisse Global Energy Summit. "Transcript of Phillips 66 Presentation" by Greg Garland. February 12, 2014]</ref>
 
Greg Garland told security analysts at the Credit Suisse Global Energy Summit on February 12, 2014 that Phillips expects to sell Maleka and Whitegate in 2014. "We've gotten very good at selling the good things. I told Clayton we're going to have to get very good at selling the not-so-good things. Certainly [we] have a process underway  with Whitegate.  We have a process underway  with Melaka. What I would say in that you should expect that we will draw those processes to a conclusion in 2014.<ref>[http://www.phillips66.com/EN/investor/presentations_ccalls/Documents/2014-02-12-credit-suisse-transcript.pdf Credit Suisse Global Energy Summit. "Transcript of Phillips 66 Presentation" by Greg Garland. February 12, 2014]</ref>
  
=====October 30, 2013: Garland Says Phillips Still Looking to Sell Its Interest in Melaka Refinery=====
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===October 30, 2013: Garland Says Phillips Still Looking to Sell Its Interest in Melaka Refinery===
 
Garland told analysts at the third quarter earnings conference on October 30, 2013 that Phillips is still looking at "selling possibly our Whitegate refinery in Ireland and our interest in the Melaka refinery in Malaysia, and so those efforts continue. We’re in the process of evaluating specifically the opportunities around Whitegate. So I think those have been the pieces of portfolio for us that long-term are really where the strategic interest is."<ref>[http://seekingalpha.com/article/1787822-phillips-66s-ceo-discusses-q3-2013-results-earnings-call-transcript?part=single Seeking Alpha. "Phillips 66's CEO Discusses Q3 2013 Results - Earnings Call Transcript" October 30, 2013.]</ref>
 
Garland told analysts at the third quarter earnings conference on October 30, 2013 that Phillips is still looking at "selling possibly our Whitegate refinery in Ireland and our interest in the Melaka refinery in Malaysia, and so those efforts continue. We’re in the process of evaluating specifically the opportunities around Whitegate. So I think those have been the pieces of portfolio for us that long-term are really where the strategic interest is."<ref>[http://seekingalpha.com/article/1787822-phillips-66s-ceo-discusses-q3-2013-results-earnings-call-transcript?part=single Seeking Alpha. "Phillips 66's CEO Discusses Q3 2013 Results - Earnings Call Transcript" October 30, 2013.]</ref>
  
=====July 15, 2013: Melaka Refinery Crude Unit Restarted=====
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===July 15, 2013: Melaka Refinery Crude Unit Restarted===
 
Business Times reported on July 15, 2013 that the crude distillation unit at Phillips' Melaka refinery has restarted after being shut since mid-June. he unit, which processes 100,000 barrels per day (bpd), was shut after a fire at the refinery and was expected to be restarted by early July but the refinery has been hit with "technical issues" which caused the CDU to be shut longer than expected. "There was an issue with the steam chamber which is where the fire happened, but it affected the CDU as well," said a source familiar with the matter. The downtime in Melaka resulted in imports of about 1.2 million barrels of gasoline pushing the Asian gasoline margin on July 12 to more than a four-year high of US$16.74 a barrel, a trader estimated. Besides a base oil plant, there are two CDUs in the Melaka refinery that run as standalone operations.<ref>[http://www.btimes.com.my/Current_News/BTIMES/articles/20130715161053/Article/index_html Business Times. "Melaka refinery crude unit restarted" July 15, 2013.]</ref>
 
Business Times reported on July 15, 2013 that the crude distillation unit at Phillips' Melaka refinery has restarted after being shut since mid-June. he unit, which processes 100,000 barrels per day (bpd), was shut after a fire at the refinery and was expected to be restarted by early July but the refinery has been hit with "technical issues" which caused the CDU to be shut longer than expected. "There was an issue with the steam chamber which is where the fire happened, but it affected the CDU as well," said a source familiar with the matter. The downtime in Melaka resulted in imports of about 1.2 million barrels of gasoline pushing the Asian gasoline margin on July 12 to more than a four-year high of US$16.74 a barrel, a trader estimated. Besides a base oil plant, there are two CDUs in the Melaka refinery that run as standalone operations.<ref>[http://www.btimes.com.my/Current_News/BTIMES/articles/20130715161053/Article/index_html Business Times. "Melaka refinery crude unit restarted" July 15, 2013.]</ref>
  
=====January 30, 2013: Phillips Writes down $564 Million in Equity on Melaka Refinery=====
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===January 30, 2013: Phillips Writes down $564 Million in Equity on Melaka Refinery===
 
Greg Garland told analysts during the fourth quarter earnings conference on January 30, 2013 that had Phillips had taken a charge of $564 million for the impairment of our equity investment in the Melaka refinery. "This impairment was based on significantly lower estimated future refining margins in the region, driven primarily by expected increases in future crude oil pricing over the long term. As such, we determined that the fair value of our investment in Melaka was lower than our carrying value and that this loss in value was other than temporary."<ref>[http://www.phillips66.com/EN/investor/presentations_ccalls/Documents/PSX-Transcript-2013-01-30T.pdf Phillips 66.  "Q4 2012 Phillips 66 Earnings Conference Call" January 30, 2013.]</ref>
 
Greg Garland told analysts during the fourth quarter earnings conference on January 30, 2013 that had Phillips had taken a charge of $564 million for the impairment of our equity investment in the Melaka refinery. "This impairment was based on significantly lower estimated future refining margins in the region, driven primarily by expected increases in future crude oil pricing over the long term. As such, we determined that the fair value of our investment in Melaka was lower than our carrying value and that this loss in value was other than temporary."<ref>[http://www.phillips66.com/EN/investor/presentations_ccalls/Documents/PSX-Transcript-2013-01-30T.pdf Phillips 66.  "Q4 2012 Phillips 66 Earnings Conference Call" January 30, 2013.]</ref>
  
=====December 13, 2012: Phillips Likely to Sell its stake in Melaka Refinery in Malaysia=====
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===December 13, 2012: Phillips Likely to Sell its stake in Melaka Refinery in Malaysia===
 
Reuters reported on December 13, 2012 that Greg Garland told reporters on December 13, 2012 that Phillips will likely look to sell its Whitegate refinery in Cork, Ireland, and its stake in the 2 Melaka refinery in Malaysia. Phillips plans to retain stakes in the refineries it owns in the United Kingdom and Germany. "We don't envision growing in the Asian refining space," said Garland.<ref>[http://www.reuters.com/article/2012/12/13/phillips66-forecast-sales-idUSL1E8ND9OE20121213 Reuters. "Phillips considers sale of Irish, Malaysian refining stakes" December 13, 2012.]</ref>
 
Reuters reported on December 13, 2012 that Greg Garland told reporters on December 13, 2012 that Phillips will likely look to sell its Whitegate refinery in Cork, Ireland, and its stake in the 2 Melaka refinery in Malaysia. Phillips plans to retain stakes in the refineries it owns in the United Kingdom and Germany. "We don't envision growing in the Asian refining space," said Garland.<ref>[http://www.reuters.com/article/2012/12/13/phillips66-forecast-sales-idUSL1E8ND9OE20121213 Reuters. "Phillips considers sale of Irish, Malaysian refining stakes" December 13, 2012.]</ref>
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==References==
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{{reflist|3}}
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==Master Index of Articles about Phillips 66==
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[[Image:Poncacity07.jpg|thumb|400px|The North Tower and the South Tower, part of Phillips 66's Refinery Complex in Ponca City, contain [http://respectponcacity.com over 250,000 square feet of Class A office space that is essentially unused]. Research West contains another 230,000 square feet of unused Class A office space. Photo: [http://hughpickens.com Hugh Pickens]]]
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[[Image:Poncacity66refinery.jpg|thumb|right|400px|'''Ponca: A Core Asset.''' Phillips CEO Greg Garland told members of the Bartlesville Chamber of Commerce on August 27, 2013 that the refinery at Ponca is a 'core asset' of Phillips 66. '''The refinery in Ponca City "is making very good money for us," Garland told his Bartlesville audience.''' Garland added that he expects gas demands in the U.S. to decline by 20 percent in the next 10 years, but that demand for refined products in South America and Africa will more than offset that decline.]]
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by [http://hughpickens.com Hugh Pickens], Ponca City Oklahoma
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The purpose of this report is to provide a comprehensive overview of Phillips 66 that documents and explains the company's business strategy and execution of that strategy.
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'''<span style="color:#0000FF">Major Sections of this report on Phillips 66 include:</span>'''
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{|style="border-style: solid; border-width: 1px"
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|-style="vertical-align:top;"
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|scope="col" width="350px"|'''<span style="color:#0000FF">Safety, Environment, Legal</span>'''
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* [http://researchandideas.com/index.php?title=Safety_and_Environmental_Issues_at_Phillips_66#Safety_and_Environment Safety and Environment] - [http://researchandideas.com/index.php?title=Deaths_and_Injuries_at_Phillips_Refineries_and_Chemical_Plants#Deaths_and_Injuries_at_Phillips_Refineries_and_Chemical_Plants Deaths and Injuries]
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* [http://researchandideas.com/index.php?title=Litigation_and_Legal_Issues_at_Phillips_66#Litigation_and_Legal_Issues_with_Phillips Litigation and Legal Issues with Phillips 66]
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* [http://researchandideas.com/index.php?title=Operational_Excellence_at_Phillips_66#Operational_Excellence Operational Excellence]
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* [http://researchandideas.com/index.php?title=Technology_Development_at_Phillips_66#Technology_Development Technology Development]
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* [http://researchandideas.com/index.php?title=Labor_Relations_at_Phillips_66#Labor_Relations_and_Issues_with_Employees Labor Relations and Human Resources]
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* [http://researchandideas.com/index.php?title=Labor_Relations_at_Phillips_66#Employee_Benefits Employee Benefits]
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* [http://researchandideas.com/index.php?title=Government_Relations_at_Phillips_66#Government_Relations Government Relations]
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* [http://researchandideas.com/index.php?title=Media_Relations_and_Public_Relations_at_Phillips_66#Public_Relations_and_Media_Relations Media Relations and Public Relations]
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* [http://researchandideas.com/index.php?title=Philanthropic_and_Community_Benefits_at_Phillips_66#Philanthropic_and_Community_Benefits Philanthropic and Community Benefits]
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<html><HR></html>
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'''<span style="color:#0000FF">Corporate</span>'''
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*[http://researchandideas.com/index.php?title=An_Independent_Evaluation_of_Phillips_66,_its_Business_Strategy,_and_Execution#Creation_of_Phillips_66 Creation of Phillips 66]
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* [http://researchandideas.com/index.php?title=An_Independent_Evaluation_of_Phillips_66,_its_Business_Strategy,_and_Execution#Governance_of_Phillips_66 Governance of Phillips 66]
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* [http://researchandideas.com/index.php?title=An_Independent_Evaluation_of_Phillips_66,_its_Business_Strategy,_and_Execution#Greg_Garland.2C_Chairman.2C_President_and_CEO_of_Phillips_66 CEO Greg Garland] - [http://researchandideas.com/index.php?title=An_Independent_Evaluation_of_Phillips_66,_its_Business_Strategy,_and_Execution#Jim_Mulva.2C_Chairman_and_CEO_of_ConocoPhillips Jim Mulva]
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* [http://researchandideas.com/index.php?title=An_Independent_Evaluation_of_Phillips_66,_its_Business_Strategy,_and_Execution#Board_of_Directors Phillips 66 Board of Directors]
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* [http://researchandideas.com/index.php?title=An_Independent_Evaluation_of_Phillips_66,_its_Business_Strategy,_and_Execution#Management_and_Governance_Effectiveness_at_Phillips_66 Management Effectiveness]
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'''<span style="color:#0000FF">Strategic and Financial</span>'''
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* [http://researchandideas.com/index.php?title=An_Independent_Evaluation_of_Phillips_66,_its_Business_Strategy,_and_Execution#Strategic_Vision_for_Phillips_66 Strategic Vision for Phillips 66]
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* [http://researchandideas.com/index.php?title=Phillips_66_Capital_Programs#Phillips_Capital_Programs Phillips 66 Capital Programs]
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* [http://researchandideas.com/index.php?title=An_Independent_Evaluation_of_Phillips_66,_its_Business_Strategy,_and_Execution#Financial_Stability_of_Phillips_66_and_Risk_Management Financial Stability]
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* [http://researchandideas.com/index.php?title=Divestiture_of_Non-Core_Assets_at_Phillips_66#Phillips.27_Divestiture_of_Non-Core_Assets_Through_Sale.2C_Exchange.2C_or_Closure Phillips' Divestiture of Non-Core Assets]
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* [http://researchandideas.com/index.php?title=Phillips_66_Expansion,_Construction,_Acquisitions_and_Purchases#Phillips_Expansion.2C_Construction.2C_Acquisitions_and_Purchases Construction, Acquisitions, and Purchases]
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'''<span style="color:#0000FF">Business Segments</span>'''
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* [http://researchandideas.com/index.php?title=Refining_Business_Segment_at_Phillips_66#Refining_Business_Segment Refining Business Segment]
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* [http://researchandideas.com/index.php?title=Marketing_and_Special_Products_at_Phillips_66#Marketing_and_Special_Products Marketing and Special Products] - [http://researchandideas.com/index.php?title=Marketing_and_Special_Products_at_Phillips_66#Latest_News_and_Views_on_Marketing Latest News]
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* [http://researchandideas.com/index.php?title=Chemical_Business_Segment_at_Phillips_66#Chemical_Business_Segment_within_Phillips_66 Chemical Business Segment] - [http://researchandideas.com/index.php?title=Chemical_Business_Segment_at_Phillips_66#Latest_News_and_Views_on_the_Chemical_Business_Segment Latest News]
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* [http://researchandideas.com/index.php?title=Midstream_Business_Segment_at_Phillips_66#Midstream_Business_Segment_within_Phillips_66 Midstream Business Segment] - [http://researchandideas.com/index.php?title=Midstream_Business_Segment_at_Phillips_66#Latest_News_and_Views_of_the_Midstream_Business_Segment Latest News]
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'''<span style="color:#0000FF">Stock Market</span>'''
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* [http://researchandideas.com/index.php?title=The_Stock_Market_and_Phillips_66#The_Stock_Market_and_Investor_Relations The Stock Market and Investor Relations]
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* [http://researchandideas.com/index.php?title=The_Stock_Market_and_Phillips_66#Stock_Performance Phillips 66 Stock Performance]
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* [http://researchandideas.com/index.php?title=The_Stock_Market_and_Phillips_66#Dividends_and_Stock_Repurchase Phillips 66 Dividends and Stock Repurchases]
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* [http://researchandideas.com/index.php?title=The_Stock_Market_and_Phillips_66#Stockholder.27s_Meetings Stockholder's Meetings]
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* [http://researchandideas.com/index.php?title=The_Stock_Market_and_Phillips_66#Earnings_Conferences Phillips 66 Earnings Conferences]
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* [http://researchandideas.com/index.php?title=The_Stock_Market_and_Phillips_66#Investor_Conferences Phillips 66 Investor Conferences]
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* [http://researchandideas.com/index.php?title=What_Independent_Financial_Analysts_Say_About_Phillips_66#What_Independent_Financial_Analysts_Say_About_Phillips_66 What Financial Analysts Say About Phillips 66]
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'''<span style="color:#0000FF">Reference</span>'''
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* [http://researchandideas.com/index.php?title=Phillips_Master_Index_List Master Index of Phillips 66 Articles]
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* [http://researchandideas.com/index.php?title=An_Independent_Evaluation_of_Phillips_66,_its_Business_Strategy,_and_Execution#Conclusions Conclusions]
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* [http://researchandideas.com/index.php?title=An_Independent_Evaluation_of_Phillips_66,_its_Business_Strategy,_and_Execution#External_Links External Links]
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* [http://researchandideas.com/index.php?title=An_Independent_Evaluation_of_Phillips_66,_its_Business_Strategy,_and_Execution#References References]
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* [http://researchandideas.com/index.php?title=An_Independent_Evaluation_of_Phillips_66,_its_Business_Strategy,_and_Execution#About_the_Author About the Author]
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'''<span style="color:#0000FF">Refining Business Segment</span>'''
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* [http://researchandideas.com/index.php?title=Refining_Business_Segment_at_Phillips_66#Refining_Business_Segment Refining Business Segment]
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* [http://researchandideas.com/index.php?title=Refining_Business_Segment_at_Phillips_66#Phillips_66_Worldwide_Refineries Phillips 66 Worldwide Refineries]
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* [http://researchandideas.com/index.php?title=Increasing_Profitability_in_the_Refining_Business_Segment_at_Phillips_66#Increasing_Profitability_in_the_Refining_and_Marketing_Business_Segment Increasing Profitability in Refining Business Segment]
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'''<span style="color:#0000FF">Increasing Profitability in Refining Business Segment</span>'''
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* [http://researchandideas.com/index.php?title=Increasing_Profitability_in_the_Refining_Business_Segment_at_Phillips_66#Increase_Profitability_by_Getting_More_Advantaged_Crude_in_Front_of_Refineries Process More Advantaged Crudes]
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* [http://researchandideas.com/index.php?title=Increasing_Profitability_in_the_Refining_Business_Segment_at_Phillips_66#Increase_Profitability_by_Increasing_Exports Expand Export Capability]
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* [http://researchandideas.com/index.php?title=Increasing_Profitability_in_the_Refining_Business_Segment_at_Phillips_66#Increase_Profitability_by_Increasing_Clean_Product_Yields Increase Clean Product Yields]
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* [http://researchandideas.com/index.php?title=Divestiture_of_Non-Core_Assets_at_Phillips_66#Phillips.27_Divestiture_of_Non-Core_Assets_Through_Sale.2C_Exchange.2C_or_Closure Optimize Portfolio]
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'''<span style="color:#0000FF">Detailed Look at Ponca City Refinery</span>'''
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* [http://researchandideas.com/index.php?title=Phillips_66:_Ponca_City_Refinery#Ponca_City_and_its_Century-Old_Oil_Refining_History Ponca City and its Century-Old Oil Legacy and History]
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* [http://researchandideas.com/index.php?title=Phillips_66:_Ponca_City_Refinery#How_Much_Money_Does_the_Ponca_City_Refinery_Earn_for_Phillips_66.3F How Much Money Does Ponca City Earn for Phillips?]
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* [http://researchandideas.com/index.php?title=Phillips_66:_Ponca_City_Refinery#Ponca_City_and_the_.22Merger_of_Equals.22_with_Phillips_in_2001 Ponca City and the "Merger of Equals" in 2001]
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* [http://researchandideas.com/index.php?title=Phillips_66:_Ponca_City_Refinery#Ponca_City_and_the_Spinoff_of_Phillips_66_in_2012 Ponca City and the Spinoff of Phillips 66 in 2012]
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* [http://researchandideas.com/index.php?title=Phillips_66:_Ponca_City_Refinery#News_from_the_Ponca_City_Refinery Latest News from the Refinery in Ponca City]
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* [http://researchandideas.com/index.php?title=Phillips_66:_Ponca_City_Refinery#August_13.2C_2014:_Phillips_66_CEO_Greg_Garland_Wants_to_Find_a_Company_to_Lease_the_North_and_South_Towers Phillips' Plans for the North and South Towers]
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'''<span style="color:#0000FF">Other Phillips Refineries</span>'''
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* [http://researchandideas.com/index.php?title=Phillips_66_Alliance_Refinery#Alliance_Refinery Alliance Refinery (AL)]
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* [http://researchandideas.com/index.php?title=Phillips_66:_Bayway_Refinery#Bayway_Refinery Bayway Refinery (BW)]
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* [http://researchandideas.com/index.php?title=Phillips_66:_Billings_Refinery#Billings_Refinery Billings Refinery (BI)]
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* [http://researchandideas.com/index.php?title=Phillips_66:_Borger_Refinery#Borger_Refinery Borger Refinery (BG)]
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* [http://researchandideas.com/index.php?title=Phillips_66:_Ferndale_Refinery#Ferndale_Refinery Ferndale Refinery (FN)]
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* [http://researchandideas.com/index.php?title=Phillips_66:_Humber_Refinery#Humber_Refinery Humber Refinery (HU)]
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* [http://researchandideas.com/index.php?title=Phillips_66:_Lake_Charles_Refinery#Lake_Charles_Refinery Lake Charles Refinery (Westlake) (LC)]
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* [http://researchandideas.com/index.php?title=Phillips_66:_Los_Angeles_Refinery#Los_Angeles_Refinery Los Angeles (Wilmington) Refinery (LA)]
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* [http://researchandideas.com/index.php?title=Phillips_66:_Melaka_Refinery#Melaka_Refinery Melaka Refinery in Malaysia (ME)]
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* [http://researchandideas.com/index.php?title=Phillips_66:_Ponca_City_Refinery#News_from_the_Ponca_City_Refinery Ponca City Refinery (PC)]
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* [http://researchandideas.com/index.php?title=Phillips_66:_San_Francisco_Refinery#San_Francisco_Refinery San Francisco Refinery (SF)] [http://researchandideas.com/index.php?title=Phillips_66:_San_Francisco_Refinery#News_and_Views_on_Rodeo_Refinery Rodeo] [http://researchandideas.com/index.php?title=Phillips_66:_San_Francisco_Refinery#News_and_Views_on_Santa_Maria_Refinery Santa Maria (Nipomo)]
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* [http://researchandideas.com/index.php?title=Phillips_66:_Sweeny_Refinery#Sweeny_Refinery Sweeny Refinery (SW)]
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* [http://researchandideas.com/index.php?title=Phillips_66:_Whitegate_Refinery#Whitegate_Refinery Whitegate Refinery in Ireland (WG)]
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* [http://researchandideas.com/index.php?title=Phillips_66:_Wood_River_Refinery#Wood_River_Refinery Wood River Refinery (WR)]
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<html><HR></html>
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'''<span style="color:#0000FF">Other Locations</span>'''
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* [http://researchandideas.com/index.php?title=Phillips_66:_Houston_Headquarters#New_Phillips_66_Headquarters New Houston Headquarters]
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* [http://researchandideas.com/index.php?title=Phillips_66:_Houston_Chemical_Complex_(HCC)#Phillips_66_Houston_Chemical_Complex_.28HCC.29 Houston Chemical Complex]
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* [http://researchandideas.com/index.php?title=Phillips_66:_Bartlesville_Technology_Hub#Bartlesville_Technology_Hub Bartlesville Technology Hub]
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* [http://researchandideas.com/index.php?title=Chemical_Business_Segment_at_Phillips_66#Latest_News_and_Views_from_Port_Arthur_Chemical_Plant Port Arthur Chemical Plant]
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* [http://researchandideas.com/index.php?title=Chemical_Business_Segment_at_Phillips_66#Latest_News_and_Views_from_Cedar_Bayou_Chemical_Plant Cedar Bayou Chemical Plant (Baytown)]
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* [http://researchandideas.com/index.php?title=Chemical_Business_Segment_at_Phillips_66#Latest_News_and_Views_from_Sweeny_Petrochemical_Complex Sweeny Petrochemical Complex]
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* [http://researchandideas.com/index.php?title=Phillips_66:_Trainer_Refinery#Trainer_Refinery Trainer Refinery (sold in 2012)]
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* [http://researchandideas.com/index.php?title=Phillips_Refinery_in_Phillips,_Texas#Phillips_Refinery Phillips Refinery (Closed in 1986)]
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|}

Latest revision as of 13:30, 29 September 2017

Conoco and Phillips 66 announced on November 18, 2001 that their boards of directors had unanimously approved a definitive agreement for a "merger of equals". The merged company, ConocoPhillips, became the third-largest integrated U.S. energy company based on market capitalization and oil and gas reserves and production. On November 11, 2011 ConocoPhillips announced that Phillips 66 would be the name of a new independent oil and gasoline refining and marketing firm, created as ConocoPhillips split into two companies. ConocoPhillips kept the current name of the company and concentrated on oil exploration and production side while Phillips 66 included refining, marketing, midstream, and chemical portions of the company. Photo: Hugh Pickens all rights reserved.

by Hugh Pickens, Ponca City Oklahoma


The purpose of this report is to provide a comprehensive overview of Phillips 66 that documents and explains the company's business strategy and execution of that strategy.

Major Sections of this report on Phillips 66 include:

Safety, Environment, Legal


Corporate


Strategic and Financial


Business Segments


Stock Market


Reference

Refining Business Segment


Increasing Profitability in Refining Business Segment


Detailed Look at Ponca City Refinery


Other Phillips Refineries


Other Locations


Contents

[edit] Master Index of Articles about Phillips 66

The 587 foot tall Mammoet PTC 140 crane, seen here from North First Street, towers over the Refinery Complex in Ponca City. The supercrane was used to move two new 232 ton coker reactor units within the refinery on September 29, 2013. Phillips was willing to invest $70 million in the two new coker reactor units because the Ponca City Refinery is one of the best run, safest, and most profitable of Phillips' fifteen worldwide refineries and Garland wants the refinery in Ponca City to continue to run smoothly and profitably. This photograph of the supercrane in Ponca City was taken from almost two miles away from the crane. Photo: Hugh Pickens All Rights Reserved.
Hugh Pickens, an analyst who closely follows Phillips 66, speaks with Phillips CEO Greg Garland (right) about the disposition of the North Tower, South Tower, and Research West at Phillips' Ponca City Refinery after Garland's speech to the Bartlesville Chamber of Commerce on August 13, 2014.

by Hugh Pickens, Ponca City Oklahoma


The purpose of this report is to provide a comprehensive overview of Phillips 66 that documents and explains the company's business strategy and execution of that strategy.

Major Sections of this report on Phillips 66 include:

Safety, Environment, Legal


Corporate


Strategic and Financial


Business Segments


Stock Market


Reference

Refining Business Segment


Increasing Profitability in Refining Business Segment


Detailed Look at Ponca City Refinery


Other Phillips Refineries


Other Locations


[edit] Melaka Refinery

Melaka Refinery' The PSR-2 refinery in Melaka, Malaysia, is a joint venture with Petronas, the Malaysian state oil company. Phillips 66 owns a 47 percent interest in the joint venture. The medium, highsulfur crude oil processed by the refinery is sourced mostly from the Middle East. The refinery produces a full range of refined petroleum products and capitalizes on hydrocracking and coking technology to upgrade low-cost feedstocks to higher-margin products. Photo Credit: Hyrdrocarbons Technology

[edit] News and Views from the Melaka Refinery

[edit] November 12, 2014: Phillips to Sell Maleka Refinery for $635 Million

FuelFix reported on November 12, 2014 that Phillips has made a deal to sell its 47-percent stake in a Malaysian refinery for $635 million in cash that is expected to close at the end of 2014. “This divestiture allows us to redeploy resources to more strategic areas of our business,” said Larry Ziemba, executive vice president of refining for Phillips 66, in a written statement. Dean Acosta, a spokesman for Phillips 66, said the firm won’t have a refining presence in Asia after the deal closes. “We continually evaluate the assets in our portfolio to identify opportunities to significantly enhance returns,” Acosta said in an email. “We do that through portfolio management as well as improving margins on our current assets.”[1]

[edit] October 29, 2014: Sale of Maleka Refinery is an Ongoing Process

Greg Garland told analysts during the third quarter earnings conference call on October 29, 2014 that the sale of the Melaka Refinery is an ongoing process. "We have an ongoing process at Melaka. And I think our expectation is certainly end of this year, first quarter next year, that we'll complete that process."[2]

[edit] August 29, 2014: Second Unit Shut Down at Maleka Refinery

MSN reported on August 29, 2014 that Petronas is running the 100,000 barrels-per-day (bpd) Malacca refinery it jointly owns with US oil company Phillips 66 at a lower rate than usual after unexpectedly shutting a secondary unit. The refinery's crude distillation unit (CDU) will be running at a lower operating rate than normal from August 21 to September 8 while the secondary unit is being repaired, one of the sources said. Petronas operates two CDUs at the Malacca petroleum complex that run as standalone operations. It solely owns a 100,000-bpd CDU that mainly processes sweet crude.[3]

[edit] February 14, 2014: Garland Says Phillips Expects to Sell Maleka Refinery in 2014

Greg Garland told security analysts at the Credit Suisse Global Energy Summit on February 12, 2014 that Phillips expects to sell Maleka and Whitegate in 2014. "We've gotten very good at selling the good things. I told Clayton we're going to have to get very good at selling the not-so-good things. Certainly [we] have a process underway with Whitegate. We have a process underway with Melaka. What I would say in that you should expect that we will draw those processes to a conclusion in 2014.[4]

[edit] October 30, 2013: Garland Says Phillips Still Looking to Sell Its Interest in Melaka Refinery

Garland told analysts at the third quarter earnings conference on October 30, 2013 that Phillips is still looking at "selling possibly our Whitegate refinery in Ireland and our interest in the Melaka refinery in Malaysia, and so those efforts continue. We’re in the process of evaluating specifically the opportunities around Whitegate. So I think those have been the pieces of portfolio for us that long-term are really where the strategic interest is."[5]

[edit] July 15, 2013: Melaka Refinery Crude Unit Restarted

Business Times reported on July 15, 2013 that the crude distillation unit at Phillips' Melaka refinery has restarted after being shut since mid-June. he unit, which processes 100,000 barrels per day (bpd), was shut after a fire at the refinery and was expected to be restarted by early July but the refinery has been hit with "technical issues" which caused the CDU to be shut longer than expected. "There was an issue with the steam chamber which is where the fire happened, but it affected the CDU as well," said a source familiar with the matter. The downtime in Melaka resulted in imports of about 1.2 million barrels of gasoline pushing the Asian gasoline margin on July 12 to more than a four-year high of US$16.74 a barrel, a trader estimated. Besides a base oil plant, there are two CDUs in the Melaka refinery that run as standalone operations.[6]

[edit] January 30, 2013: Phillips Writes down $564 Million in Equity on Melaka Refinery

Greg Garland told analysts during the fourth quarter earnings conference on January 30, 2013 that had Phillips had taken a charge of $564 million for the impairment of our equity investment in the Melaka refinery. "This impairment was based on significantly lower estimated future refining margins in the region, driven primarily by expected increases in future crude oil pricing over the long term. As such, we determined that the fair value of our investment in Melaka was lower than our carrying value and that this loss in value was other than temporary."[7]

[edit] December 13, 2012: Phillips Likely to Sell its stake in Melaka Refinery in Malaysia

Reuters reported on December 13, 2012 that Greg Garland told reporters on December 13, 2012 that Phillips will likely look to sell its Whitegate refinery in Cork, Ireland, and its stake in the 2 Melaka refinery in Malaysia. Phillips plans to retain stakes in the refineries it owns in the United Kingdom and Germany. "We don't envision growing in the Asian refining space," said Garland.[8]

[edit] References



[edit] Master Index of Articles about Phillips 66

The North Tower and the South Tower, part of Phillips 66's Refinery Complex in Ponca City, contain over 250,000 square feet of Class A office space that is essentially unused. Research West contains another 230,000 square feet of unused Class A office space. Photo: Hugh Pickens
Ponca: A Core Asset. Phillips CEO Greg Garland told members of the Bartlesville Chamber of Commerce on August 27, 2013 that the refinery at Ponca is a 'core asset' of Phillips 66. The refinery in Ponca City "is making very good money for us," Garland told his Bartlesville audience. Garland added that he expects gas demands in the U.S. to decline by 20 percent in the next 10 years, but that demand for refined products in South America and Africa will more than offset that decline.

by Hugh Pickens, Ponca City Oklahoma


The purpose of this report is to provide a comprehensive overview of Phillips 66 that documents and explains the company's business strategy and execution of that strategy.

Major Sections of this report on Phillips 66 include:

Safety, Environment, Legal


Corporate


Strategic and Financial


Business Segments


Stock Market


Reference

Refining Business Segment


Increasing Profitability in Refining Business Segment


Detailed Look at Ponca City Refinery


Other Phillips Refineries


Other Locations

Personal tools