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Saudi Aramco expects to take a final decision on plans for a joint oil-to-chemicals project with Saudi Basic Industries Corp (SABIC) by the end of this year, Amin Nasser, Aramco's chief executive told Reuters Tuesday.
"We finished the feasibility. We are at a stage where we need to work together and make some decision about proceeding with the project with SABIC," Nasser said on the sidelines of an investment conference in Riyadh.
The two companies are expected to sign a memorandum of understanding to develop the complex in mid-November.
Last August, an unnamed industry source with knowledge of the matter said the state-run oil giant and SABIC had sought bids for engineering work on the $20 billion venture to produce chemicals.
Being the first major scheme to bring the two giants together, the COTC project is expected to process Arabian Light and Extra Light crude oil, one of the sources told Reuters.
Aramco is in also in talks with China National Petroleum Corporation (CNPC) on building a 260,000 barrel-per-day refinery in Yunnan province, China.
Aramco also signed a framework agreement this year with Chinese defense conglomerate China North Industries Group Corp (Norinco) to build a refinery and chemicals complex in northeast China.
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