Two Saudi Companies Negotiating to Establish a Petrochemical Company

Two Saudi Companies Negotiating to Establish a Petrochemical Company Two Saudi companies meet to establish a petrochemical company. Saudi Industrial Investment Group and National Petrochemical Co. started preparations to create the company with $ 11 billion in assets. Saudi Industrial Investment Group and National Petrochemical Co. are negotiating to establish a company with potentially $ 11 billion in assets while evaluating Middle Eastern energy companies in a lower oil price environment. In the statement made by the companies, it was said that the negotiations are at the beginning and no agreement has yet been reached. Saudi Industrial, one of the parties, holds 50 percent of National Petrochemical. The potential joint venture is seen as a result of the restructuring of energy companies in countries such as Saudi Arabia, Qatar and the United Arab Emirates, overcoming their operations in order to compete with a market that is under pressure due to low demand. Saudi National Petrochemical Co. had acquired Sahara Petrochemical Company last year. Saudi Aramco also bought the majority shares of SABIC (Saudi Arabian Basic Industries Authority) for a deal of about $ 70 billion.