Riyadh – Mubasher: Saudi Aramco and the Saudi Basic Industries Corp’s (SABIC) signed a memorandum of understanding (MoU) to establish a complex to convert crude oil to chemicals in Saudi Arabia, sources told Reuters Sunday.
The joint venture (JV) will achieve the strategic and commercial targets of the two companies, said Aramco CEO Amin Nasser.
This project will contribute to achieving one of the most important hubs of Saudi Vision 2030, said SABIC’s CEO and deputy chairman, Yousef Al Benyan.
The value of project exceeds $20 billion, and it will be the first JV of the two firms, which is a part of Aramco’s plans to expand in petrochemicals sector.
In October 2017, informed sources told Reuters that Aramco and SABIC received offers to provide consulting services for managing a planned JV to convert oil into chemicals.
“The two companies had agreed in June 2016 to conduct a feasibility study for the project, which industry sources have estimated would cost around $25 billion to build,” Reuters said.
