New Saudi Styrene Plant and Existing Aromatics Plant Expansion Approved; Engineering Procurement & Construction Contracts Signed; Financing Secured

Chevron Phillips Chemical Company LLC and the Saudi Industrial Investment Group (SIIG) have received approval to proceed with a major new investment at their existing aromatics complex in Al Jubail, Saudi Arabia.  Financing for the estimated $1.2 billion joint venture project will be provided through capital contributions from the co-venturers and loans from commercial banks and Saudi government agencies.  Start-up is expected in late 2007.

When completed, the styrene facility will include feed fractionation, an olefins cracker, ethylbenzene and styrene monomer process units, and associated utilities and infrastructure. The existing aromatics plant that will be expanded as part of the project will supply feedstock to the styrene facility.  The new styrene facility will be owned by Jubail Chevron Phillips Company, a 50/50 joint venture between SIIG and Arabian Chevron Phillips Petrochemical Company Limited, a subsidiary of Chevron Phillips Chemical Company LLC. 

The existing aromatics plant is owned by Saudi Chevron Phillips Company, another joint venture of SIIG and Arabian Chevron Phillips Petrochemical Company Limited.

“This project is the result of a long-standing and constructive relationship between our two companies,” said SIIG Chairman, Sheikh Abdulaziz Zaid Al-Quraishi.  “It will provide important technology, operations and construction jobs for Saudi citizens,” he added.

Jim Gallogly, Chevron Phillips Chemical Company LLC President and CEO said, “The new styrene plant and expansion of the existing aromatics plant build upon the strong foundation we have established in the region and is a further example of our pursuit of strategic growth opportunities and geographic diversification."

The engineering and procurement contract for the new facility was awarded to JGC Corporation and the construction contract was awarded to JGC Arabia Ltd.

Chevron Phillips Chemical Company LLC with its affiliates is one of the world’s top producers of olefins and polyolefins and is a leading supplier of aromatics, alpha olefins, styrenics, specialty chemicals, piping and proprietary plastics.  The company has total assets in excess of $6 billion and is equally owned by ChevronTexaco Corporation and ConocoPhillips.

Saudi Industrial Investment Group is publicly traded on the Saudi stock exchange.  It includes among its shareholders leading Saudi businessmen and several Saudi public joint stock companies focused on industrial investment in the petrochemical industry in Saudi Arabia.  The Chairman of the group is Sheikh Abdulaziz Zaid Al-Quraishi.  The late Sheikh Ahmad Juffali in 1985 originally founded the group as the Saudi Industrial Venture Capital Group (SIVCG).  For more information about Saudi Industrial Investment Group, visit www.siig.com.sa.