Royal Dutch Shell PLC has completed the sale of its 50% interest in the Saudi Petrochemical Co. (SADAF) joint venture to Saudi Basic Industries Corp. (SABIC), its partner, for $820 million (OGJ Online, Jan. 23, 2017).
Part of Shell’s broader $30-billion divestment program, the chemical sale enables the company to more finely focus its downstream activities and make selective investments to support growth of its global chemicals business, Shell said on Aug. 16.
With the transaction now finalized, SABIC plans further investments at SADAF both to optimize and integrate operations of the complex with other SABIC affiliates, according to Shell.
The SADAF complex, on 460 acres in Jubail, Saudi Arabia, comprises an ethylene plant, two styrene plants, a salt plant, an ethyl chloride-caustic plant, a methyl tertiary butyl ether plant, and a cogeneration plant.
It produces an average of more than 4 million tonnes/year of chemicals from ethane, benzene, methane, butane, and salt brine.
SABIC and Shell formed the joint venture in June 1980. Ethylene production began in October 1984.
The JV agreement was to have expired in 2020.
Contact Robert Brelsford at [email protected].