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Saudi Arabia’s respective oil and petrochemicals giants Aramco and Sabic have signed a heads of agreement (HoA) to study the feasibility of developing an oil-to-chemicals complex. The companies say the agreement sets out the principles for establishing a joint venture project if the study “reaches a positive conclusion.”
The two companies say their oil-to-chemicals process will involve innovative configurations of proven conversion technologies to create “a fully integrated petrochemical complex which maximizes chemicals yield, transforms and recycles by-products” while bringing economies of scale and diversifying the kingdom’s petrochemicals feedstock mix.
Until recently, Aramco and Sabic have been developing oil-to-chemicals processes separately. However, reports emerged in April that the companies had abandoned their separate programs in favor of a cooperative approach. This followed an announcement by Deputy Crown Prince Muhammad bin Salman – charged by King Salman to oversee the country’s economic and energy sector development – that he had resolved a conflict between the companies (MEES, 15 April). (CONTINUED - 771 WORDS)