Iran: Gasoline Output Boost
18 Jan, 2019
Refining & Petrochemicals
Aramco’s Sabic Takeover: Are Assets Compatible?
18 Jan 2019
As Saudi Aramco prepares to absorb petchems giant Sabic at Riyadh’s behest, MEES runs the rule over the extent to which Sabic’s asset base meshes with that of Aramco.
Whilst the decision for Aramco to take over petchems-focused state firm Sabic was clearly dictated by Riyadh (MEES, 9 November 2018), Aramco CEO Amin Nasser has been singing the praises of the plans to take over the 70% of Sabic currently owned by Saudi Arabia’s PIF sovereign wealth fund. Sabic is “a very strategically [good] fit with what we are aspiring to be, which is deeper in the downstream sector,” he says (MEES, 4 January).
Whilst Aramco does currently have petchems assets, these are dwarfed by those of Sabic. This could potentially lead to organizational issues as a relatively small player absorbs a giant. Aramco’s two Saudi-based petchems joint ventures and recent elastomers firm purchase have combined gross...
Sabic Production* (Mn Tons)