Rubber: SABIC and ExxonMobil Chemical Award Contracts, Sign Technology Agreements for Proposed New Elastomers Project

HOUSTON--May 16, 2011: Saudi Basic Industries Corporation (SABIC) and affiliates of ExxonMobil Chemical announced that Front-End Engineering Design contracts were awarded and that all components are in FEED phase for the proposed new elastomers project at their Al-Jubail Petrochemical Company (KEMYA) joint venture petrochemical plant.

“This elastomers project will be the basis for the creation of a world-class rubber value chain in Saudi Arabia and a valuable extension of our offering of products and services to our customers in key markets”

FEED contracts were awarded to Jacobs Engineering Inc. and Mitsui Engineering & Shipbuilding for process units and to Fluor Transworld Services Inc. for associated support facilities.

"This elastomers project will be the basis for the creation of a world-class rubber value chain in Saudi Arabia and a valuable extension of our offering of products and services to our customers in key markets," said Koos van Haasteren, SABIC executive vice president, Performance Chemicals.

"In addition to supporting local industry, the expansion at the KEMYA joint venture in Al-Jubail would provide additional new capacity of butyl rubber and EPDM (ethylene propylene diene monomer) specialty elastomers to meet the growing global demand for these products," said Neil Chapman, senior vice president, Polymers, ExxonMobil Chemical Company.

The project is expected to establish a domestic supply of more than 400,000 metric tons of rubber [butyl, styrene butadiene rubber (SBR), butadiene rubber and EPDM], thermoplastic specialty polymers and carbon black to serve emerging local and international markets in Asia and the Middle East.

The project also includes the establishment of a vocational training center and product application development and support center aligned with Saudi Arabia's National Industrial Clusters Development Program to grow and diversify the manufacturing sector in Saudi Arabia.

Third-party license agreements have been signed with Continental Carbon Company for its carbon black production technology and with The Goodyear Tire & Rubber Company for its SBR and polybutadiene rubber technology.

The University of Akron Research Foundation was selected to design, train and support the vocational training center, The High Institute for Elastomer Industries, in Yanbu, Saudi Arabia. The training center will utilize the University's expertise in polymer science and education to provide elastomers technology vocational training for workers to support a planned downstream elastomers conversion industry in Saudi Arabia.

Additionally, a separate product application development and support center will be part of the new SABIC facilities at the Riyadh Techno Valley research complex at King Saud University.

The final decision to implement the elastomers project requires the approval of KEMYA's Board of Directors.

About ExxonMobil Chemical

ExxonMobil Chemical is one of the world's premier petrochemical companies with manufacturing, technology, and marketing operations around the world. The company delivers a broad portfolio of products and solutions efficiently and responsibly, with a commitment to create outstanding customer and shareholder value. ExxonMobil Chemical endorses the principles of sustainable development, including the need to balance economic growth, social development and environmental considerations.

About SABIC

Saudi Basic Industries Corporation (SABIC) ranks among the world's top petrochemical companies. The company is among the world's market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers.

SABIC recorded a net profit of SR 21.59 billion (US$ 5.73 billion) in 2010. Sales revenues for 2010 totaled SR 152 billion (US$ 40.5 billion). Total assets stood at SR 317.6 billion (US$ 84.5 billion) at the end of 2010.