Shell Divests Stake in Saudi JV
Shell has completed the sale of its 50-percent stake in the SADAF petrochemicals joint venture to SABIC, Shell announced Tuesday.
The $820 million deal – announced this past January - gives SABIC full ownership of the JV that it formed with Shell in 1980. Located in Al Jubail, Saudi Arabia, SADAF produced the Kingdom's first ethylene and has become one of the largest petrochemical complexes in the Middle East, according to Shell's website. In January SABIC stated that the early termination of the JV deal, which was set to expire in 2020, will allow it to further optimize SADAF's operations and make additional investments in the facilities.
According to Shell, SADAF features six world-scale petrochemical plants with a total average output of more than 4 million metric tons of chemicals used in auto parts, home appliance parts, detergents, tires, personal care and other products.
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