Shell is exiting from its joint venture (JV) SADAF, by selling its 50 per cent stake to JV Partner SABIC for $820 million. SADAF manages and operates six world scale petrochemical plants with a total capacity of 4 million metric tons per year located in Saudi Arabia. Shell is exiting the JV before the agreement date, due to expire in 2020.
According to Shell, this disinvestment will enable Shell to focus on its downstream activities and make selective investments to support the growth of its global chemicals business.Shell is exiting from its joint venture (JV) SADAF, by selling its 50 per cent stake to JV Partner SABIC for $820 million. SADAF manages and operates six world scale petrochemical plants with a total capacity of 4 million metric tons per year located in Saudi Arabia. Shell is exiting the JV before the agreement date, due to expire in 2020.#
While this acquisition is expected to help SABIC to optimise operations further at SADAF, and make additional investments in SADAF facilities, while also integrating them with SABICs various subsidiaries.
“Our partnership with SABIC, spanning more than thirty years has been a great success story,” Graham Hoff, executive vice president – chemicals at Shell said. “We’re proud to have established together one of the first petrochemical ventures in Saudi Arabia, which has grown substantially since the start in 1986.” (AR)
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