23rd Jan 2017 06:49
LONDON (Alliance News) - Royal Dutch Shell PLC said on Sunday it has agreed to sell its 50% stake in petrochemicals joint venture SADAF in Saudi Arabia to Saudi Basic Industries Corp for USD820 million.
The joint venture incorporates six petrochemical plants, with a total output of more than 4 million metric tons per year, Shell said. The sale of the stake marks an early termination of the joint venture agreement, due to expire in 2020.
Shell said disposal will allow it to focus on its downstream activities, and make "selective investments to support the growth of its global chemicals business".
"Our partnership with SABIC, spanning more than thirty years, has been a great success story. We're proud to have established together one of the first petrochemical ventures in Saudi Arabia - it has grown substantially since the start, in 1986. We will continue to explore potential future opportunities with SABIC," said Executive Vice President of Chemicals at Shell, Graham van't Hoff in a statement.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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