MORE VENTURES CROP UP FOR WORK IN U.S.S.R.

More U.S. companies are striking upstream and downstream joint venture deals in the Soviet Union.

In the latest moves:

• Huntsman Chemical Corp., a privately held company with headquarters in Salt Lake City, Utah, signed a protocol with the Soviet Union's Styrol Production Association calling for a 50-50 venture to produce polystyrene.

• Tokheim Automation Corp., Houston, formed a venture named SovTex Automation with Sojuzgazavtomatika (SGA), the automation arm of Gasprom, the Gas Ministry of the U.S.S.R., to promote the transfer of natural technology. Tokheim also made a multimillion dollar sale of gas measurement technology to SGA.

• Amoco Production Co.'s Amoco Eurasia Petroleum Co. received official notice it has been chosen to develop, together with the Soviet production association Kaspmorneftegas, Azeri oil field in the Azerbaijan portion of the Caspian Sea. Tass, the Soviet news agency, disclosed the choice earlier (OGJ, June 24, p. 27).

POLYSTYRENE PRODUCTION

The Huntsman-Styrol combine will upgrade existing high impact polystyrene capacity and construct crystal capacity at Styrol's Gorlovka plant in the Ukraine, just outside of Kiev.

Styrol currently supplies feedstock for the Huntsman Aeromar joint venture that produces disposable clear plastic tumblers in Moscow.

The new joint venture, which is to be operational within the next 20 months, will sell polystyrene in the U.S.S.R. and abroad. Anticipated production is more than 110 million lb/year.

Huntsman also disclosed it is expanding capacity of its Moscow plant by more than 60% to 50 million tumblers/year from 30 million. The plant has been in operation since July 1990.

The plant, located at Sheremetjevo-1 airport on the outskirts of Moscow, manufactures the tumblers for the Soviet state airline Aeroflot, other Soviet restaurants, and supply and distribution centers. A number also are sold for hard currency to other airlines.

Huntsman's Moscow operation is the result of a joint venture among itself, Aeroflot, and Caterair International, a spinoff of Marriott Corp.

Huntsman, with a 51% interest in the plant, said it is the first U.S. company to own a majority share in a Soviet joint venture under recently relaxed investment regulations.

GAS MEASUREMENT

Sovtex Automation has leased space, hired and trained personnel, and begun assembly of computerized gas measurement and control systems at its Moscow headquarters.

Tokheim said SovTex Automation is the first venture of its kind formed to promote the transfer of gas measurement technology between the U.S. and the Soviet Union.

Tokheim will provide technology to the joint venture and will be paid in U.S. dollars for its half interest plus license fees.

Tokheim has received the first of three technology payments from Gasprom in advance of its due date, last June 15.

Donald J. Drapp, Tokheim chairman and chief executive officer, said, "With all the negative press about the Soviet Union being late or in default on payments, this advance payment by Gasprom clearly demonstrates that business with the Soviets can be conducted on a favorable basis when a quality working relationship is established through trust and absolute performance by both partners."

FIELD DEVELOPMENT

Amoco said the next steps in its project will be to work with Kaspmorneftegas to prepare a detailed feasibility study for development of Azeri field and complete required agreements.

Amoco chose McDermott International Inc. as prime contractor for design, procurement, fabrication, and installation of field facilities.

McDermott, in turn, will work with Association Shelfprojectstroy of the Azerbaijan Republic, called by Amoco the leading marine fabricator in the U.S.S.R.

Shelfprojectstroy has extensive Caspian Sea experience, Amoco said.

Azeri has been shut in since its discovery in 1987. It lies 90 miles from Baku, capital of Azerbaijan.

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