SIIG awards EPC contracts, gets funding for JV

17 December 2007 02:51  [Source: ICIS news]

DUBAI (ICIS news)--Saudi Industrial Investment Group (SIIG) has awarded engineering, procurement and construction (EPC) contracts, and raised Saudi riyals (SR) 7bn ($1.87bn) in new funding for its joint venture project with Chevron Phillips, the group said on Sunday.

It has signed EPC contracts for the SR18bn project, called National Chevron Phillips (NCP), with Japan’s JGC and South Korea’s Daelim, SIIG said in a statement on the Saudi stock exchange.

Financial deals of the contracts were not disclosed.

The partners have already received interest from 20 Saudi, regional and international banks to provide commercial loans in access of SR7bn, SIIG said.

This funding is in addition to funding from the Saudi Industrial Development Fund, the Public Investment Fund and capital raised by both shareholders.

NCP is a 50:50 joint venture between SIIG and Arabian Chevron Phillips Petrochemical (ACP), a wholly-owned subsidiary of Chevron Phillips Chemical.

The cracker will produce ethylene, polyethylene (PE), polypropylene (PP), 1-hexane and polystyrene (PS).

The engineering, design and financing were initiated in 2004 and the project is presently at an advanced stage of design and development, SIIG said.

Construction is set to begin in late 2007 and the facility is expected to begin operational activity in 2011.

($1 = SR3.74)

By: Abdelghani Henni
65 6780 4359

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