SABIC & ExxonMobil To Produce Synthetic Rubber At Jubail & Yanbu'.

The Saudi Basic Industries Corporation (SABIC) and ExxonMobil Chemical are to produce synthetic rubber products at their JV complexes in Jubail on the Persian Gulf and Yanbu' on the Red Sea coast. Announcement of this came after the two companies in September reached a settlement on disputes over the use of ExxonMobil's polyethylene (PE) production technology and patents.

SABIC on Nov. 5 announced that a feasibility study was underway for a project to build new downstream units at Saudi Yanbu' Petrochemical Co. (Yanpet) and al-Jubail Petrochemical Co. (Kemya) - both being 50-50 JV with ExxonMobil. The study will look at establishing units to produce carbon black and rubber and thermoplastic specialty polymers, including ethylene propylene diene monomer, thermoplastic olefin, butyl and styrene-butadiene rubber/polybutadiene rubber (SBR/PBR). SABIC said the project would use feedstock allocated by the Petroleum and Mineral Resources Ministry, as well as additional feedstock from other local sources, which would be processed at the Yanpet and Kemya complexes.

SABIC on Sept. 28 said it had reached a full and final settlement with the US super-major of its disputes over the PE issue. This meant that SABIC and its worldwide affiliates now had the right to use the PE technology royalty-free and share equally in any third-party royalties from past or future licencing of the technology by ExxonMobil.