SABIC to acquire Royal Dutch Shell's 50% stake to get full ownership of SADAF

23-Jan-17

SABIC agreed to buy out Royal Dutch Shell Plc’s 50% stake to take full ownership of the Saudi Petrochemical Co. venture (SADAF) for US$820 mln. This is the third project with Sabic that the Anglo-Dutch company has exited since 2014. Sabic and Shell are ending their partnership earlier than its planned 2020 expiration. SADAF has six petrochemicals plants with total production of about 4 million metric tpa.
The sale of SADAF, based in Jubail in eastern Saudi Arabia, will allow Shell to focus on its downstream activities and to make “selective investments to support the growth of its global chemicals business,” it said in the statement. Shell will look at potential opportunities with Riyadh-based Sabic, Graham van’t Hoff, executive vice president for chemicals, said in the statement.