Saudi Arabia: Sabic and Aramco Sign Agreement Saudi Arabia Plans to Diversify Petrochemical Industry

Editor: Alexander Stark

Saudi Aramco and Saudi Arabian Basic Industries Corporation (Sabic) have signed heads of agreement to conduct a feasibility study on the development of a fully integrated crude oil-to-chemicals complex to be located in Saudi Arabia.

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Saudi Aramco was represented by Abdulaziz Judaimi, Business Line Head, Downstream while SABIC was represented by Uwaidh Alharethi, Executive Vice President, Chemicals.
Saudi Aramco was represented by Abdulaziz Judaimi, Business Line Head, Downstream while SABIC was represented by Uwaidh Alharethi, Executive Vice President, Chemicals.
(Picture: Sabic)

Riadh/Saudi Arabia – The agreement contains key principles of cooperation to form the basis for the companies to establish a joint venture, if the joint study reaches a positive conclusion.

The companies intend to use improved refining methods applying proven conversion technologies and plan on creating a fully integrated petrochemical complex.

The agreement is part of the Kingdom's plans to increase the production of oil-based petrochemicals and further optimizing value across the entire hydrocarbons chain. The "Kingdom of Saudi Arabia Vision 2030" goals include the creation of a world leading downstream sector in Saudi Arabia, built on four key drivers: maximizing value from the Kingdom’s crude oil production via vertical and horizontal integration across the hydrocarbon chain; enabling the creation of conversion industries that produce semi-finished and finished goods to help diversify the economy; developing advanced technologies and innovation; and, enabling the Kingdom’s sustainable development in alignment with the Kingdom’s National Transformation Program.

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