Major petrochemicals producer Saudi Basic Industries Corp (Sabic) has reached an agreement with national oil giant Saudi Aramco to conduct a joint feasibility study on a proposed oil-to-chemicals project.

Derived from improved refining technology, the crude oil-to-chemicals process will involve innovative configurations with proven conversion technologies, said a statement from Sabic.

This will create a fully integrated petrochemical complex which maximizes chemical yield, transforms and recycles by-products, drives efficiencies of scale and resource optimization and diversifies the petrochemical feedstock mix in the kingdom, it stated.

Saudi Aramco president and CEO, Amin H. Nasser said: "The agreement with Sabic reflects the vision to build on our global leadership in crude oil production and commodities export by substantially increasing the production of oil-based petrochemicals and further optimising value across the entire hydrocarbons chain."

"This agreement will help spur a new era of industrial diversification, job creation and technology development in Saudi Arabia, particularly through downstream conversion of specialty chemicals by small and medium sized enterprises," he added.

Sabic vice chairman and chief executive, Yousef Abdullah Al-Benyan said: “By working together to deliver chemistry that matters, Sabic and Saudi Aramco can drive advances that will diversify the kingdom’s feedstock mix and make oil a viable petrochemical feedstock."

"We are hopeful that our agreement to conduct a joint feasibility study on the development of an integrated crude oil-to-chemicals complex in Saudi Arabia will ultimately lead to a new era for the kingdom, driving strong economic growth, creating many new opportunities for aspiring young Saudis, and playing a significant role in the kingdom’s economic transformation," he added.-TradeArabia News Service