JEDDAH, 26 October 2005 — Saudi Basic Industries Corp. (SABIC) has said that it was not a party of the dispute between the Japanese Toyo contracting company and Petrokemya, a wholly owned subsidiary of SABIC.
In an official statement, SABIC also said that negotiations were still continuing between Petrokemya and Toyo to settle their dispute on payment of arrears for a major project in Jubail carried out by the Japanese firm. “These disputes are quite common in such projects,” the SABIC statement said, adding that Petrokemya had not received any intimation from the Court of Grievances in Dammam after Toyo had filed a lawsuit against it. A Toyo official said the dispute started two years ago when the Japanese firm completed building a large petrochemical complex in Jubail, which has started operation with 100 percent production capacity.
Arab News reported recently that Toyo had filed a lawsuit against SABIC after the two failed to reach an agreement. Toyo was demanding arrears of the value of the contract it had signed with SABIC, in addition to other huge compensations for certain aspects of the complex.
