BP’s Innovene invests $2 billion in Saudi
By Karen Remo-Listana
Posted: 13 June 2005
Innovene, BP’s petrochemical unit entered into a joint venture with a leading private Saudi company for the construction of a world-scale cracker plant in the Kingdom.
The project, which is expected to cost around $2 billion, will form a platform for future long-term growth opportunities.
"We see this joint venture as the first chapter in a long and fruitful partnership between Innovene and the Kingdom of Saudi Arabia ,” Ralph Alexander, CEO of Innovene said.
Under the Memorandum of Understanding (MoU) signed by Innovene and Delta, a leading private Saudi-owned independent development company, the two companies will be equal partners in the joint venture to build a "cracker" unit that will convert natural gas into ethylene, the raw material for plastic wrappings and containers .
It is anticipated that, subject to final approvals, an agreement will be signed before the end of the year, with commissioning of the first plants expected in late 2008.
The MOU was signed in Riyadh by Ralph Alexander, CEO of Innovene and Mr Badr Al-Aiban, Chairman and CEO of Delta in the presence of His Highness Prince Saud Bin Thunayyan Al-Saud, Chairman of the Royal Commission for Jubail and Yanbu.
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