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Mobil, Pequiven Continue Jose Project Discussions

11 November 1999

Mobil, Pequiven Continue Jose Project Discussions

    FAIRFAX, Va.--Nov. 10, 1999--Mobil Chemical Company said today it is continuing discussions with Petroquimica De Venezuela, S.A. (Pequiven) regarding the construction of a world-scale petrochemicals complex in Jose, Venezuela.
    Earlier this year the two companies successfully completed Phase I engineering for the 1,000,000-metric-ton-a-year ethylene cracker and related downstream facilities to convert the ethylene into as much as 750,000 metric tons of polyethylene and 420,000 metric ton of ethylene gycol. The facility would be located 140 miles east of Caracas.
    At the Latin American Petrochemical Association Conference at Margarita Island, Venezuela on Monday, Mobil Chemical President Raymond McGowan said he believes the project will be built but Mobil has not made a final decision regarding its participation pending resolution of a number of issues.
    "Mobil and Pequiven are jointly evaluating how to proceed from here," Mr. McGowan said today. "A project of this magnitude is a huge undertaking and takes time to finalize. The Jose Project has good fundamentals, such as the availability of feedstock to allow world-scale capacity and access to attractive markets."
    A final investment decision is not expected before the first quarter of 2000.
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