Dow Chemical, Saudi Aramco in exclusive petrochemical venture talks

DOW JONES NEWSWIRE, JULY 10, 2006
DOW JONES NEWSWIRES
Dow Chemical Co. (DOW) was chosen as a potential partner to engage in exclusive negotiations concerning a joint-venture company by The Saudi Arabian Oil Co.
The Midland, Michigan, chemical company said the joint-venture company would build, own and operate a chemicals and plastics production complex at Ras Tanura, in Saudi Arabia’s Eastern Province.
The joint venture would encompass an array of facilities producing a broad portfolio of plastics and chemical products, Dow Chemical said.
The proposed complex would be integrated with the existing Ras Tanura refinery complex, the company said.
Dow Chemical shares closed Friday down 51 cents, or 1.3%, at $37.86.
Saudi Aramco picks Dow as partner for petrochemicals project 11/07/2006
JOHN WHITEHEAD, PLASTICS & RUBBER WEEKLY, JULY 11, 2006
Saudi oil giant is keen to build chemicals role.
11 July 2006 — Dow has been chosen by Saudi Aramco as the oil giant’s “potential partner” in a world scale chemicals and plastics complex at Ras Tanura, one of the world’s leading refinery complexes. Saudi Aramco will hold exclusive negotiations with Dow on the project, it announced yesterday.
The joint venture would include a number of facilities “producing a very broad portfolio of plastics and chemical products,” the companies say.
Owned by the Saudi government, Saudi Aramco has proven reserves of 260 billion barrels of oil, equivalent to nearly one quarter of the world total and also operates the world’s fourth largest gas reserves. It has already signalled its ambitions to develop a role in petrochemicals and plastics by establishing a joint venture with Sumitomo Chemical at its Rabigh refinery.
Dow’s major Middle East presence up to now is in the Equate joint ventures in Kuwait which it acquired through its purchase of Union Carbide.

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