Change in ownership structure at Sabina Petrochemicals JV between BASF, Total, Shell

02-Aug-11

BASF Corporation and Total Petrochemicals USA, Inc. have announced a change in ownership of the Sabina Petrochemicals LLC joint venture that operates one of the world’s largest C4 complexes, located in Port Arthur, Texas. With effect from August 1, 2011, Shell Chemical LP, will exit the joint venture. As of this date, BASF and Total Petrochemicals will be the sole partners in Sabina with 60:40 ownership shares. BASF will continue to operate the Sabina plants. The terms of the agreement are confidential. “The change in ownership of the Sabina joint venture marks a milestone in its seven year history,” said Heidi Alderman, Senior Vice President, Petrochemicals, BASF Corporation. “BASF and TPI remain firmly committed to the Port Arthur site and plan to continue to invest in the site to optimize production capacity." “This new structure provides a stronger partnership between TPI and BASF and allows us to strengthen the synergies between the Total Port Arthur Refinery, the BFLP (BASF FINA Petrochemicals Limited Partnership) and the C-4 Sabina operation,” said Geoffroy Petit, Chief Executive Officer, TPI Petrochemicals USA, Inc. The Sabina Petrochemicals LLC C4 complex, adjacent to the BASF FINA Petrochemicals Limited Partnership’s steam cracker and Total Petrochemicals USA’s Port Arthur refinery, began operating in 200 4. The facility consists of two plants: the world’s largest single train butadiene extraction unit and an indirect alkylation unit. Butadiene is used in the production of rubber and plastics. Alkylate is used as a fuel additive for high octane gasoline blending.