Saudi Basic Industries Corp. — Capital/Financing Update 2018

May 1, 2018

SABIC announces the latest developments on study the establishment of a joint venture for industries promoting petrochemicals with ExxonMobil Corporation in the US Gulf Coast

2010 · 01/05/2018 20:21:46 · Announcement #50565 · View on Saudi Exchange

SABIC announces the latest developments on study the establishment of a joint venture for industries promoting petrochemicals with ExxonMobil Corporation in the US Gulf Coast

Referring to the declaration of the Saudi Basic Industries Corporation (SABIC), circulated on April 19, 2017, on progress in the study of the establishment of a joint venture petrochemical industries with one of the companies of ExxonMobil in the US Gulf Coast and the selection of land in the county of San Patricio in Texas as a site for the project: SABIC declares on Tuesday, May 1, 2018, that the parties reached the decision to create a joint venture petrochemical industries in the US Gulf Coast, based on the project feasibility.

Also the engineering, procurement and construction contracts was signed with Chiyoda Kiewit Joint Venture and CTCI McDermott to establish the project, estimated to cost about 7.3 billion US dollars (SABIC share is 50%) financed through its own resources and other funding. It is expected to start in the initial engineering and construction during the second quarter of this year and expected to be completed during the fourth quarter of the year 2021.

The project is expected to start up during the first half of 2022, and the company also expects that this project will have a positive impact on its consolidated financial statements. Note that the financial impact will be reflected on the results of the company after the commercial operation and project completion.

The project includes the establishment of an ethylene production unit with annual capacity of about 1.8 million tons, which will feed two polyethylene units and a monoethylene glycol unit. The project reflects SABIC strategy to focus on geographical diversification to reach new global markets and enable the company to access competitive feedstock.

It should also be noted that the decision on the construction of the project depends on obtaining the required regulatory approvals.

ExxonMobil US Gulf Investment Company is fully owned by Exxon Mobil and is registered in the state of Delaware.

The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.