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Sabic negotiates with Sonatrach, 8 petrochemical projects targeted by the Saudi

Monday Jun 12 2006.

The Saudi group that is specialised in the petrochemical industry Sabic focuses, for the time being and during its discussions with the Algerian company Sonatrach

On making partnership in integrated big projects that were announced by the Algerian company early this year, amongst them 8 big projects in the petrochemical field.

The Saudi company showed its interest in the realisation of partnership projects and in the investment in its speciality in Algeria soon, especially that these projects will be amongst the most important that are going to be done in years, investing 10 billions dollars in the context of big investment programs for drain, that is the activity specialised in petrochemical.

According to sources close to energy sector declared to El Khabar, it is expected in the second semester of the current year that petrochemical plan adopted by Sonatrach will be unveiled; also mechanism of its realisation will be unveiled. The minister of the energy Chakib Khalil declared early February 2006 that the petrochemical plan will be announced. The plan will be the first coordinated plan that allows the development of petrochemical industry, and the coming into force of the new energy code allowed such plan.

On the other hand, the minister of energy has already declared in the same period that the signature on agreement for the creation of petrochemical factories will be done shortly. Amongst these agreements the contract with the Saudi company Sabic, while the Spanish group Sifilar after its buying Arzfir and Fersial by 66%, it tends to build the biggest factory for Ammoniac production in the world in Algeria spending more than 438 millions dollars on the project.

It is to be noticed that, on the top of that, Sabic owns the European company for petrochemical after buying the sector. This company owns factories in Holland and Germany, and employs about 2300 persons, and the Saudi government owns 70% of the capital, against 30% owned by the private sector from the kingdom and other gulf countries.

S Hafid — El-Khabar

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