SABIC AND EXXONMOBIL REACH A FULL SETTLEMENT OF THEIR DISPUTES
Saudi Basic Industries Corporation (SABIC) has reached a full and final settlement of its disputes with ExxonMobil arising from technology and a patent that can be used in the production of polyethylene. Pursuant to the settlement, SABIC and its worldwide affiliates will have the right to use the technology royalties -free and will equally share in any third-party royalties from the past or future licensing of the technology by ExxonMobil.
All disputes and litigations between SABIC and its partner ExxonMobil have thus been fully and finally settled.
The partners value their long-term business relationship and will continue to focus on their successful ventures in the Kingdom and to explore opportunities to expand on that success.
Saudi Basic Industries Corporation (SABIC) is the largest public company in the Middle East, ranked by market capitalization (more than US$ 100 billion), and one of the world’s 10 largest petrochemicals manufacturers. The company is among the world’s market leaders in the production of polyethylene, polypropylene, glycols, methanol, MTBE and fertilizers as well as the fourth largest polymer producer.
SABIC’s profit rose to a record SR 19.2 billion (US$ 5.1 billion) in 2005, a 35% increase on 2004 and the company’s highest profit since inception. Sales revenues for 2005 totaled SR 78.3 billion (US$ 20.8 billion), making SABIC the largest and most profitable public company in the Middle East.
SABIC operates six interlinked strategic business units: Basic Chemicals, Intermediates, Polyolefins, PVC and Polyester, Fertilizers and Metals. The company has significant research resources and has dedicated Research and Technology centers in Riyadh, Geleen in the Netherlands, Houston USA and Vadodara in India. SABIC has more than 17,000 employees worldwide.
SABIC has two large production sites in Saudi Arabia – in Al-Jubail and in Yanbu – comprising 18 world-scale complexes. Some of these complexes are operated with multi-national joint venture partners such as Exxon Mobil, Shell and Mitsubishi Chemicals. SABIC’s overall production capacity has increased from 35.4 million metric tons in 2001 to 46.7 million metric tons of production in 2005.
Headquartered in Riyadh, SABIC was founded in 1976 when the Saudi Arabian Government decided to use the hydrocarbon gases associated with its oil production as the principal feedstock for production of chemicals, polymers and fertilizers. The Saudi Arabian Government owns 70% of SABIC shares with the remaining 30% held by private investors in Saudi Arabia and other Gulf Cooperation Council countries.
SABIC Europe, headquartered in Sittard, the Netherlands, employs nearly 2,450 people and operates two petrochemical production sites in Geleen, the Netherlands and Gelsenkirchen in Germany for the production of polypropylenes, polyethylenes and liquid hydrocarbons. These are marketed by its European network of sales offices and logistical hubs. In 2005, SABIC Europe produced 2.5 million metric tons of polyolefins and 3.1 million metric tons of basic chemicals, mainly for the European market.
- SABIC DONATES SR 8 MILLION TO LEBANESE PEOPLE
- SABIC AFFILIATE GAS SIGNS SR 1.2 BILLION ISLAMIC LOAN WITH BANQUE SAUDI FRANSI “BSF” AND APPOINTS BSF AS FINANCIAL ADVISOR AND LEAD ARRANGER FOR ITS
- sabic wins two islamic finance awards
- Al-Mady Inspects Sabic Manufacturing Complexes And Yansab Construction Works At Yanbu Industrial City
- SABIC SIGNS A LETTER OF INTENT (LOI) WITH STONE & WEBSTER FOR THE ENGINEERING, PROCUREMENT AND CONSTRUCTION OF HIGH DENSITY POLYETHYLENE (HDPE) PLANT