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Delta International group
(“Delta”) a leading Saudi-owned independent
development group, today announces that it has
signed a Memorandum of Understanding
(“Agreement”) with BP plc’s petrochemicals and
refining subsidiary, Innovene, for a major
investment in Saudi Arabia’s petrochemical
sector.
The Agreement’s long-term
goal is for the joint venture to construct two
world-scale crackers in the Kingdom on a phased
basis. Each cracker is expected to cost in
excess of $2 billion. BP/Innovene, Delta and
other principal parties are now commencing
detailed negotiations to progress contractual
arrangements for the project, with site
locations being explored in Jubail.
Commercial agreements for
the project will be signed before the end of the
year, with construction scheduled to commence
mid 2006 and commissioning of the first plant
expected in late 2008. BP/Innovene and Delta
will be equal partners in the joint venture.
The Agreement was signed
today at a ceremony in Riyadh by Mr Badr Al-Aiban,
Chairman and Chief Executive Officer of Delta
and Ralph Alexander, Chairman and Chief
Executive Officer of Innovene under the
patronage, and in the presence of, His Highness
Prince Saud Bin Thunayyan Al-Saud, Chairman of
the Royal Commission for Jubail and Yanbu.
In support of the new
joint venture, His Excellency the Minister of
Commerce and Industry, Dr Hashim bin Abdullah
Al/Yamani, said,
“The Kingdom has always
been keen to encourage foreign investment and we
are extremely pleased to be welcoming BP as an
investor into the Kingdom. We look forward to
providing every support required to ensure the
success of this venture.”
Commenting on the joint
venture with BP, Mr Badr Al-Aiban said:
“We are delighted to be
partnering with BP/Innovene, one of the largest
petrochemical companies in the world, and look
forward to a successful venture. Delta has a
long reputation for its ability to forge highly
successful long-term strategic alliances with
both major companies and the countries in which
we operate. As a Saudi company with domestic
and global activities, we are pleased to be able
to play such an important part in the continuing
development of Saudi Arabia’s petrochemicals
industry.”
Ralph Alexander
commented:
“We see this joint
venture as the first chapter in a long and
fruitful partnership between Innovene and the
Kingdom of Saudi Arabia. It confirms Innovene’s
position as a truly global petrochemicals
player, including Delta on the list of highly
respected companies with whom we have
partnerships around the world and adding a major
Middle East position to our existing portfolio
of assets in North America, Asia and Europe.”
Enquiries:
Delta Oil Company
Lisa J Newman, Newman
Consulting,
+44 (0)7747 462574
Notes to editors:
Delta
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Delta group, a leading
private Saudi-owned development company, was
founded by its Chairman and Chief Executive
Officer, Mr. Badr Al-Aiban in 1978, and its
activities have expanded significantly since
its inception. Delta is headquartered in
Jeddah.
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Delta played an important
role in the conception of the “Contract of
the Century”; as a founding member of the
consortium for the supergiant Azeri, Chirag,
Gunashli field (with over 4.5 billion
barrels of recoverable reserves), offshore
Azerbaijan, and during that time identified
and participated in a number of other major
projects within the Caspian region, Central
Asia and the Middle East.
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Delta’s activities in the
oil and gas sector are currently focused
primarily on North and West Africa.
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For more information on
Delta, visit
www.delta-oil.com
Innovene
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Innovene was created as a
wholly owned subsidiary of BP on April 1,
2005. BP may sell part of its stake in
Innovene via an IPO later in 2005, subject
to necessary approvals and market
conditions.
-
Innovene will be one of
the five largest independent petrochemical
companies in the world, with more than $15bn
of revenues, 15 million tons of
petrochemical production volumes and $9bn in
total assets.
-
Innovene’s major
manufacturing sites include Grangemouth in
Scotland, Lavéra in France, Köln in Germany
and Lima, Chocolate Bayou and Green Lake in
the US. SECCO, the joint venture between
Innovene, BP, Sinopec and SPC in Shanghai
and the largest petrochemical complex in
China to date, became fully operational in
March 2005.
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Innovene manufacturers
petrochemicals, including olefins (ethylene
and propylene) and their derivatives such as
polyethylene, polypropylene, acrylonitrile,
linear alpha olefins, polyalphaolefins, and
solvents, as well as gasoline, diesel and
other refined products made in the
Grangemouth and Lavéra refineries. These
chemicals are used to make a wide variety of
plastic goods, including food and drink
containers and wrappings, pipe work,
automotive parts and mouldings of all kinds.
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The company’s global
headquarters are located in downtown
Chicago.
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