DHAHRAN, 28 July 2004 — The Saudi Arabian Basic Industries Corporation (SABIC) and the Iranian company Marun Petrochemical Company are expected to finalize a joint venture agreement within the next two months, the head of the Marun Petrochemical Company announced in Tehran. This is the first joint venture between SABIC and the Iranian company, the two petrochemical giants in the region.
SABIC is world player in the petrochemical sector and the Iran is endeavoring to raise its production manifolds to exploit the natural riches of the region.
Mohammad Shajari, the chief executive of the Marun Petrochemical Company told the press that after finalization, SABIC will own 50 percent of the seventh olefin project, currently under construction and will also undertake half of total cost of the project.
Shajari stated that the project was expected to produce 1.1 million tons of ethylene as intermediate product, as well as 1.35 million tons of polymers.
The project has been reported as 90.46 percent complete by the end of the first quarter of the current Iranian calendar year.
The unit will increase the Iranian annual olefin production by 4-6 percent.
In March it was made known that SABIC has agreed to cooperate with Iran for marketing and selling Iran’s petrochemical products, especially from Marun both in the domestic and international markets.