RIYADH, Nov 18 (Reuters) - Saudi Basic Industries Corp (SABIC) and ExxonMobil Chemical signed a preliminary agreement on Tuesday to set up a multi-billion dollar synthetic rubber joint venture in Saudi Arabia, ExxonMobil said in a statement.
The plant will have a production capacity of 400,000 tonnes. The company said in the statement that detailed studies were progressing for the new elastomers project at SABIC and ExxonMobil's petrochemical joint ventures, Kemya (Al-Jubail Petrochemical Co) and Yanpet (Saudi Yanbu Petrochemical Co).
The statement said Yanpet is a 50-50 joint venture between Mobil Yanbu Petrochemical Co Inc, an affiliate of ExxonMobil Chemical and SABIC, and Kemya is a 50-50 joint venture between SABIC and Exxon Chemical Arabia Inc, an affiliate of ExxonMobil Chemical.
The final decision to implement the project, which will need Board of Direcctor approval from both joint ventures, is subject to completion of more economic feasibility studies and completion of all other statutory procedures, the statement said.
SABIC's executives could not immediately be reached for comment.
(Reporting by Souhail Karam; Editing by Erica Billingham) Keywords: EXXONMOBIL SABIC/ (souhail.karam@thomsonreuters.com, +966 1 463 2603; Reuters Messaging: souhail.karam.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The plant will have a production capacity of 400,000 tonnes. The company said in the statement that detailed studies were progressing for the new elastomers project at SABIC and ExxonMobil's petrochemical joint ventures, Kemya (Al-Jubail Petrochemical Co) and Yanpet (Saudi Yanbu Petrochemical Co).
The statement said Yanpet is a 50-50 joint venture between Mobil Yanbu Petrochemical Co Inc, an affiliate of ExxonMobil Chemical and SABIC, and Kemya is a 50-50 joint venture between SABIC and Exxon Chemical Arabia Inc, an affiliate of ExxonMobil Chemical.
The final decision to implement the project, which will need Board of Direcctor approval from both joint ventures, is subject to completion of more economic feasibility studies and completion of all other statutory procedures, the statement said.
SABIC's executives could not immediately be reached for comment.
(Reporting by Souhail Karam; Editing by Erica Billingham) Keywords: EXXONMOBIL SABIC/ (souhail.karam@thomsonreuters.com, +966 1 463 2603; Reuters Messaging: souhail.karam.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.