Saudi national oil company Aramco announced plans Thursday to transfer the marketing and sales responsibility of some Aramco petrochemicals and polymers products to the chemical manufacturer, Saudi Basic Industries Corp. (SABIC).
In a statement, Aramco said the offtake and resale responsibility of several SABIC products would also be transferred to Aramco Trading Company (ATC).
The effect of these changes, which will be phased in this year, will focus SABIC on petrochemicals products and ATC on fuel products, Aramco said.
In its financial results statement released earlier on Thursday, SABIC said the sales and marketing rights of approximately 5.4 million metric tons of chemicals and polymer products will be transferred from Saudi Aramco to SABIC.
As a part of sales and marketing rights, there will be around 900-kilo metric tons of products new to SABIC, which will include polyurethane, propylene oxide and butyl glycol ethers.
“We expect our global market share to increase in polymers and chemicals, which will reinforce SABIC as the chemicals arm of Saudi Aramco and advance the realization of our company’s ambition to be the preferred world leader in chemicals,” SABIC said.
The changes will drive further operational efficiencies, strengthen the brands of both companies and their combined products and services offering, and help to maintain competitiveness, Aramco said.
Aramco, the world's biggest oil exporter, had purchased a 70% stake in SABIC for around $70 billion in June 2020.
SABIC said since uniting forces with Aramco in June 2020, SABIC has achieved a synergy value of $156 million.
By Sibel Morrow