23 Jan Shell sells remaining stake in Saudi venture for $820 million
Oil major Royal Dutch Shell (LSE:RDSB) will sell the remaining 50% stake of its joint venture to chemical manufacturing company Saudi Basic Industries Corp (SABIC) for a fee of US$820 million.
The venture, known as SADAF, was established in 1980 and is a 460-acre petrochemical complex in the industrial city of Jubail and produced more than 4 million metric tonnes per year of various chemicals.
The acquisition is expected to be finalised by before the end of the year, and will strengthen SABIC’s operations across Saudi Arabia.
Yousef Al-Benyan, vice chairman and chief executive of the Saudi corporation said: “With this transaction SABIC is looking to capitalise on synergy opportunities of SADAF with other affiliates, and improve its operation and profitability.”
For Shell, the sale represents further streamlining following recent divestments including its Malaysian oil refinery stake and its Australian aviation business last month.
Graham van’t Hoff, executive vice president of chemicals for Shell said: “We will continue to explore potential future opportunities with SABIC.”