Saudi Aramco, SABIC to sign MoU for oil-to-chemicals JV

Saudi Aramco and Saudi Basic Industries Corp. (SABIC) plan to sign a memorandum of understanding for an oil-to-chemicals joint project, Reuters reported, citing comments by Aramco’s CEO Amin Nasser.

The project could cost as much as $30 billion, SABIC said, and involves processing petrochemicals directly from crude oil without first refining the oil into another product.

As many as 100,000 jobs may be created directly and indirectly by the scheme, one industry source said.

“The change in feedstock prices prompted SABIC to change strategy - they want to produce specialty products - and with Aramco possibly joining them as an investor, it will open a big door for them,” Mazen al-Sudairi, head of research at Alistithmar Capital, was quoted as saying.

SABIC may receive better access to funding and assistance in marketing products through Aramco’s participation, Sudairi added.