Shell sell stake in Sadaf Chemicals JV $820 million

Shell to sell stake in Sadaf Chemicals JV for $820 million

5:52 AM, 23rd January 2017
Shell logo

THE HAGUE, NETHERLANDS: Royal Dutch Shell plc and Sabic have signed an agreement whereby Sabic will acquire Shell’s 50 percent share in the petrochemicals Sadaf joint venture, located in Jubail, Kingdom of Saudi Arabia for $820 million.

The Sadaf joint venture (JV) encompasses six world-scale petrochemical plants with a total output of more than 4 million metric tonne per year. This announcement marks an early termination of the JV agreement which was due to expire in 2020.

Sadaf is a 50:50 joint venture between Saudi Basic Industries Corporation (Sabic) and Pecten Arabian Company Ltd, a subsidiary of Shell Oil Company (US).

This acquisition will enable Sabic to further enhance operations at Sadaf and further invest in the facilities, integrating them with Sabic’s other affiliates. This step will allow Shell to focus its downstream activities and make selective investments to support the growth of its global chemicals business.

“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,” said Graham van’t Hoff, executive vice president chemicals, Shell.

“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 capitalise on synergy opportunities of Sadaf with other affiliates, and improve its operation and profitability,” added Yousef Al-Benyan, vice chairman and CEO, Sabic.

© Worldofchemicals News 



Your Comments (Up to 2000 characters)
Please respect our community and the integrity of its participants. WOC reserves the right to moderate and approve your comment.

Related News

Manganese oxides used in treatment system could be mixed blessing

RALEIGH, US: Researchers at North Carolina State University (NCSU) have found that some black sludge growing in a water-treatment site could have rede ...

Read more
Scientists develop new catalysed reaction using iron salts

HUDDERSFIELD, UK: Scientists at the University of Huddersfield have developed a new chemical reaction that is catalysed using simple iron salts &ndash ...

Read more
PPG buys automotive refinish coatings company in China

PITTSBURGH, US: PPG Industries Inc said that it has acquired certain assets of automotive refinish coatings company, Futian Xinshi (Futian). With ap ...

Read more
13 global companies launch Hydrogen Council to meet climate goals

DAVOS, SWITZERLAND: Thirteen leading energy, transport and industry companies have launched a global initiative to voice a united vision and long-term ...

Read more
Chemists create new type of nanomaterial

EVANSTON, US: A team of chemists led by Northwestern University’s William Dichtel has cooked up something big: The scientists have cre ...

Read more
FMC appoints new director for agricultural solutions, Latin America

PHILADELPHIA, US: FMC Corporation has appointed Ronaldo Pereira as vice president and business director, Latin America for agricultural solutions ...

Read more uses cookies to ensure that we give you the best experience on our website. By using this site, you agree to our Privacy Policy and our Terms of Use. X