Addendum announcement from Saudi Basic Industries Corp. related to Follow-up announcement by (SABIC) regarding its planned development of the first crude oil-to-chemicals complex
Further to the Companys announcement on the Saudi Stock Exchange (Tadawul) website on 13 May 2014 about its plans to develop the first crude oil to chemicals complex, the Company would like to announce that it will sign Heads of Agreement (HOA) today Tuesday 28/06/2016 with the Saudi Arabian Oil Company (Saudi Aramco) in respect of a joint study of the development of a fully integrated crude oil to chemicals complex (Complex) to be located in the Kingdom of Saudi Arabia. The Company decided to enter into the HOA with Saudi Aramco based on the results of the Companys own preliminary study of rude oil-to-chemicals projects.
The HOA provides that the parties will conduct a comprehensive joint feasibility study of the proposed Complex. The HOA also contains certain key principles of cooperation, which would form the basis for the parties establishment of a joint venture in the event of a positive conclusion to the joint study.
The HOA reflects the Companys intention to develop investment opportunities that better help it achieve its strategic goals; however, the joint feasibility study contemplated by the HOA would not in itself have a significant financial effect on the Company.
The Company will announce any significant developments in due course.
The Capital Market Authority and the Saudi Stock Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.