Petro Rabigh reveals developments on petrochemical project

06 Aug '14

2 min read

With reference to Rabigh Refining and Petrochemical Company (Petro Rabigh) announcement Regarding Rabigh Phase II Project (Currently Under Construction) and based on Due Diligence study conducted by Petro Rabigh for a comprehensive assessment, the Board of the Company agreed on July 31st, 2014 to integrate Rabigh Phase II Project to Petro Rabigh’s Refining & Petrochemical Complex and to transfer ownership of Rabigh Phase II Project from the founding shareholders to Petro Rabigh at such time when a set of conditions are met by the founding shareholders.

The most important conditions are mentioned as following:
- Founding shareholders to secure project finance loan approvals for the Project.
- Founding shareholders to ensure that the Project will be in compliance with all related Government regulations and ensure the issuance of all required Government permits.
- Founding shareholders to implement Petro Rabigh’s proposed additional technical scope.
- Founding shareholders shall work jointly with PRC to develop ownership transfer roadmap.

Petro Rabigh Board of Directors also authorized the Company’s Management to proceed, on behalf of the Company, with the implementation of Rabigh Phase II Project at such time when, in Management’s reasonable judgment, all conditions mentioned above are satisfied.

This includes entry into, executing and delivery of any necessary agreements with the founding shareholders and their affiliates. Addressing above conditions and ownership transfer process are expected to be completed in the 4th Quarter of 2014.

Petro Rabigh