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Saudi Arabia’s petroleum and petrochemicals behemoths Saudi Aramco and Sabic have abandoned plans to develop oil-to-chemicals process technology separately in favor of a cooperative approach, recent reports indicate.
The two firms are studying a plan to build a joint plant that would produce chemical products directly from crude oil, according to Bloomberg, which cites two sources with knowledge of the talks. The firms themselves declined to comment.
The oil-to-chemicals claim comes after Saudi Deputy Crown Prince Muhammad bin Salman told the news agency that he had resolved a conflict between the two companies.
During a five-hour interview setting out Riyadh’s plans to transform the state-owned Public Investment Fund (PIF) into a $2 trillion sovereign wealth fund, Prince Muhammad said: “Sabic and Aramco are two independent companies, but both will have a majority ownership by PIF. As owners, it’s important to us not to have conflict between our companies. There was a conflict between the two companies that we resolved over the past few months.”
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