Subsidaries of Aramco & SABIC sign agreement for Fujian project
Saudi Aramco Sino Company Ltd, a wholly owned subsidiary of Saudi Aramco, signed a mutual cooperation agreement with SABIC Shenzhen Trading Company Ltd, a SABIC subsidiary in the People's Republic of China.
The agreement was signed on the afternoon of Saturday, July 12, 2008, at the offices of the parent company, Saudi Aramco, in Dhahran.
Under this agreement, SABIC Shenzhen Trading Company Ltd will market Saudi Aramco Sino Company Ltd's 25 percent share of polyolefin products produced by the Fujian Refining and Petrochemicals Company of the People's Republic of China.
The agreement was signed on behalf of Saudi Aramco Sino Company Ltd., by Saudi Aramco's senior vice president, Refining, Marketing and International, Khalid G. Buainain, while signing on behalf of SABIC Shenzhen Trading Company Ltd was SABIC's vice president, Corporate Finance, Mutlaq Al-Morished.
The signing ceremony was attended by Saudi Aramco president and CEO Abdallah S. Jum'ah, by Mohamed Al-Mady, SABIC's vice chairman of the Board of Directors and chief executive officer, in addition to a number of senior officials of Saudi Aramco, SABIC and Saudi Aramco Sino Company Ltd.
Jum'ah remarked: “Last year, we celebrated with Sinopec, the government of Fujian district of China, and ExxonMobil, the official inauguration of our joint processing venture in Fujian, the "Fujian Refining and Petrochemicals Company Ltd," which is considered to be the first-ever refining and petrochemical industries integrated project to be established with a foreign company in China, and here we are today ready to harvest the fruit of this new investment with our partners, through this momentous step we are taking together with SABIC.”
Jum'ah added, “In itself, this agreement constitutes, from the Kingdom's perspective, an extra relative advantage for SABIC, which grants it the right to market polyolefins in support of Saudi investments abroad.”
Jum'ah concluded his statement by saying, “We believe this cooperation between Saudi Aramco and SABIC will, in the future, add value to the Kingdom's internal and external investments.”
In turn, SABIC's vice chairman and CEO Mohamed Al-Mady said, ”The agreement signed between Saudi Aramco and SABIC is a qualitative leap in the history of Saudi industrial development. The agreement incarnates the integration between two giants each occupying a pioneering position worldwide, the first in the field of oil industries and the other in the area of the petrochemical industry.”
strategic cooperation between the two companies. SABIC has anchored its success over the years on its close cooperation with Saudi Aramco. We are looking forward to promoting this cooperation to include various industrial, marketing and technological aspects in a way that will accelerate national industrial development and maximize the gross domestic product.”
Khalid G. Buainain explained that the marketing studies, conducted by Sino Saudi Aramco Company Ltd, showed that the distribution and marketing of the polyolefins production of Fujian Refining and Petrochemicals Company would cover a large base of customers inside China.