Sabic pulls plug on $1bn chemicals venture

PLUG PULLED: Sabic said it has decided not to go ahead with the $1 billion joint venture.

Saudi Basic Industries Corporation (Sabic) said on Sunday it has pulled out of talks over taking a stake in the $1 billion Yanbu-based Osos Petrochemicals project.

"After several rounds of negotiations, the two parties have not reached a final agreement about this project, and therefore Sabic decided to not take it any further," Sabic said in a statement.

It did not elaborate.

Sabic had agreed to consider taking a 35% stake in the joint venture polybutylene terephthalate (PBT) complex, the world's largest chemical firm by market value said in January.

London-based Meed magazine reported on Saturday that Sabic pulled out of the talks saying PBT's offtake cost could be a reason for the breakdown of the talks.

Meed did not say how it obtained the information.

Osos aims to produce engineering plastics and specialty products and plans to start production in 2010, according to its website. It also plans to sell shares in an initial public offering (IPO), Saudi Oil Minister Ali Al-Naimi said in April, 2006. (Reuters)

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