(This story was originally published Wednesday.)
--Two thirds of EPC contracts already awarded
--Plans to go public, timing not set yet
--Looking at options for financing, including sukuk
By Ellen Knickmeyer
Of ZAWYA DOW JONES
JUBAIL, Saudi Arabia (Zawya Dow Jones)--Sadara Chemical Co., a
joint venture between Saudi Arabian Oil Co. and Dow Chemical Co.
(DOW), will award all major contracts by the third quarter to build
its $20 billion petrochemical complex, according to the company's
top executive.
State-giant Saudi Aramco and Dow officially formed joint venture
Sadara late last year to build one of the world's largest chemicals
plants in the oil-rich kingdom's Eastern Province on the Persian
Gulf coast.
All major contracts will be awarded by the third quarter,
Sadara's Chief Executive Officer Ali Abuali said at a Saudi
petroleum conference, adding that two thirds of the engineering,
procurement and construction contracts had already been
awarded.
In October, a senior Aramco executive responsible for chemicals,
told reporters in Dammam that the joint venture would award all
engineering, procurement and construction, or EPC, contracts for
its petrochemical complex by the second quarter of 2012.
Abuali also said that the company planned to go public at some
point, but added that "the timing is not set yet". The company was
still in the early stage of preparing finance, and was currently
looking at "all products," for financing, including Islamic bonds,
or sukuk, he said.
Saudi Arabia is ploughing billions of dollars into developing
its petrochemical industry in a bid to add value to its vast
hydrocarbon resources and to create jobs for its young and growing
population.
Sadara will produce polyeurethanes, propylene oxide, propylene
glycol, elastomers, linear low-density polyethylene, low density
polyethylene, glycol ethers and amines. First production units are
expected to come on line in the second half of 2015, while all
units are expected to be up and running in 2016.
-By Ellen Knickmeyer, Dow Jones Newswires, +971 55 1093359,
ellen.knickmeyer@dowjones.com
Copyright (c) 2012 Dow Jones & Co.