Shell and Sabic have signed an agreement whereby Sabic will acquire 50 per cent of Shells share in the Sadaf joint venture in Saudi Arabia
In an agreement worth US$820mn, Sabic have agreed to purchase 50 per cent of Shell's share of the petrochemicals Sadaf joint venture. The Sadaf joint venture encompasses six world-scale petrochemical plants with a total output of more than 4mn metric tonnes per year. This announcement marks an early termination of the joint venture agreement which was due to expire in 2020.
Graham vant Hoff, Executive Vice President Chemicals, Shell, said, “Our partnership with Sabic, spanning more than thirty years, has been a great success story. We’re proud to have established together one of the first petrochemical ventures in Saudi Arabia - it has grown substantially since the start, in 1986. We will continue to explore potential future opportunities with Sabic.”
Yousef Al-Benyan, SABIC Vice chairman and CEO, said, “Since Sabic’s early days, we have enjoyed a strong relationship with Shell Chemicals. We are confident that our journey of partnership together will continue and grow in strength. With this transaction Sabic is looking to capitalize on synergy opportunities of Sadaf with other affiliates, and improve its operation and profitability.”
