SABIC, Exxon Mobil Chemical sign HOA for new Elastomers project

RIYADH, November 24, SPA -- Saudi Basic Industries Corporation
(SABIC) and affiliates of Exxon Mobil Chemical have signed a Heads of
Agreement (HOA) and are progressing detailed studies for a new
Elastomers project at their petrochemical joint ventures, Kemya* and
Yanpet*.


The agreement was signed by Mansour Al Kharboush, SABIC
Vice-President, Specialty Products, and Robert G. Hutchinson,
Vice-President Chemicals, Exxon Mobil Saudi Arabia Inc.


The HOA defines the principal terms for the proposed multibillion
dollar project including project scope, technology, marketing and
feedstock supply.



The project would establish a domestic supply of over 400 KTA of
carbon black, rubber and thermoplastic specialty polymers (EPDM,
TPO, Butyl, SBR/PBR) to serve emerging local and international
markets.


This project, which includes a vocational training institute and
product application development and support center as part of the
scope, is aligned with Saudi Arabia’s National Industrial Cluster
Development Program which is responsible for accelerating growth and
diversification of the manufacturing sector, including the automotive
manufacturing industry, according to a report carried by SABIC's
website.


The final decision to implement the project, which will require
Board of Directors approval for both joint ventures, is subject to
the completion of more detailed studies of economic feasibility and
the completion of all other statutory procedures.


The new Elastomers project would utilize additional feedstock
allocated by the Ministry of Petroleum & Mineral Resources of the
Kingdom of Saudi Arabia, and additional feedstocks from other sources
in the Kingdom that will be processed at Saudi Yanbu Petrochemical
Company (Yanpet)* in Yanbu and Al-Jubail Petrochemical Company
(Kemya)* in Jubail.

--SPA