Japan: JGC Corp and Daelim Industrial Co won the two "major" construction contracts for a $4.8 billion petrochemicals plant Chevron Phillips Chemical Co and Saudi Industrial Investment Group are building in Saudi Arabia.
The Japanese and Korean companies will lead the so-called National Chevron Phillips project at Al Jubail, Saudi Industrial said in a statement to the Saudi stock exchange late yesterday, without giving values for their contracts.
National Chevron is the third project with Saudi Industrial for Chevron Phillips Chemical, a venture between Chevron Corp and ConocoPhillips based in The Woodlands, Texas.
The companies opened their first Al Jubail plant in 1999 to produce chemicals including benzene, used to make detergents and insecticides, and in 2001 agreed to build a second plant due to open in the first quarter of 2008.
Ready access to the world's biggest reserves of oil and gas has helped Saudi chemicals companies expand, while European and North American rivals struggle with rising prices for the same raw materials. National Chevron will produce chemicals including ethylene, propylene and polyethylene, Chevron Phillips spokesman Brian Cain said in September.
The National Chevron project will cost 18 billion riyals ($4.8 billion) to build and has received offers of finance worth seven billion riyals from local and international banks, Saudi Industrial said in the filing.
Further funding will come from the government's Industrial Development Fund, Public Investment Fund and the two project shareholders, it said.
Banks were invited to underwrite 15-year loans, contributing between $125 million and $250 million each, bankers familiar with the plan said in September.
The $1.8 billion borrowing is due to be signed in the first quarter of next year, Chevron Phillips Chief Executive Officer Raymond Wilcox said on December 12.
Facility: Conoco-Chevron venture
- National Chevron is the third project with Saudi Industrial for Chevron Phillips Chemical, a venture between Chevron Corp and ConocoPhillips.
- The National Chevron project will cost 18 billion riyals ($4.8 billion) to build and has received offers of finance worth seven billion riyals from local and international banks.
