8th Jun 2005 07:03
BP PLC08 June 2005 press release June 8, 2005 INNOVENE AND DELTA OIL AGREE TO EXPLORE MAJOR PETROCHEMICAL INVESTMENT IN SAUDI ARABIA Innovene, BP plc's petrochemicals and refining subsidiary, and DeltaInternational, a leading Saudi-owned independent development company, announcedtoday the signing of a Memorandum of Understanding (MOU) for a major investmentin Saudi Arabia's petrochemical sector. The memorandum marks the beginning of detailed negotiations between Innovene andDelta for the construction of a world-scale cracker and associated derivativecapacity in the Kingdom, with sites being explored in Jubail. It is intendedthat this project, which is expected to cost around $2bn, will form a platformfor future long-term growth opportunities. Innovene and Delta will be equal partners within the joint venture. It isanticipated that, subject to final approvals, an agreement will be signed beforethe end of the year, with commissioning of the first plants expected in late2008. The MOU was signed last night at a ceremony in Riyadh by Ralph Alexander, CEO ofInnovene and Mr Badr Al-Aiban, Chairman and CEO of Delta in the presence of HisHighness Prince Saud Bin Thunayyan Al-Saud, Chairman of the Royal Commission forJubail and Yanbu. Commenting on the joint venture with Delta, Ralph Alexander said: "We see thisjoint venture as the first chapter in a long and fruitful partnership betweenInnovene and the Kingdom of Saudi Arabia. It confirms Innovene's position as atruly global petrochemicals player, including Delta on the list of highlyrespected companies with whom we have partnerships around the world and adding amajor Middle East position to our existing portfolio of assets in North America,Asia and Europe." Badr Al-Aiban commented: "We are delighted to be partnering with Innovene, oneof the largest petrochemical companies in the world, and look forward to asuccessful venture. Delta has a long reputation for its ability to forge highlysuccessful long-term strategic alliances with both major companies and thecountries in which we operate. As a Saudi company with domestic and globalactivities, we are pleased to be able to play such an important part in thecontinuing development of Saudi Arabia's petrochemicals industry." Notes to editors: Innovene • Innovene was created as a wholly owned subsidiary of BP on April 1, 2005. BP may sell part of its stake in Innovene by way of an IPO later in 2005, subject to necessary approvals and market conditions. • Innovene has more than $15bn of revenues, 15 million tonnes of petrochemical production volumes and $9bn in total assets. • Innovene's major manufacturing sites include Grangemouth in Scotland, Lavera in France, Koln in Germany and Lima, Chocolate Bayou and Green Lake in the US. SECCO, the joint venture between Innovene/BP, Sinopec and SPC in Shanghai and the largest petrochemical complex in China to date, became fully operational in March 2005. • Innovene manufactures petrochemicals, including olefins (ethylene and propylene) and their derivatives such as polyethylene, polypropylene, acrylonitrile, linear alpha olefins, polyalphaolefins, and solvents. These chemicals are used to make a wide variety of plastic goods, including food and drink containers and wrappings, pipe work, automotive parts and mouldings. Innovene also manufactures gasoline, diesel and other refined products in the Grangemouth and Lavera refineries. • The company's global headquarters are located in Chicago. • For more information on Innovene, visit www.innovene.com Delta • Delta International, a leading private Saudi-owned independent development company, was founded by its Chairman and Chief Executive Officer, Mr. Badr Al-Aiban in 1978, and its activities have expanded significantly since its inception. Delta is headquartered in Jeddah. • Delta played an important role in the conception of the "Contract of the Century"; the formation of the consortium for the supergiant Azeri, Chirag, Gunashli field, offshore Azerbaijan, and during that time identified and participated in a number of other major projects within the Caspian region, Central Asia and the Middle East. • Delta's current activities upstream projects are focused primarily on North and West Africa. • For more information on Delta, visit www.Delta-oil.com Further media enquiries: Ben Moxham, Innovene, +44 7989 566560Robert Wine, BP Press Office, +44 20 7496 4827 ENDS This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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