SAUDI BUTANOL SIGNS A CONTRACTUAL AGREEMENT WITH DAELIM FOR 1.1BN

Pursuant to the announcements published in Tadawul on June 16, 2013, and December 26, 2012, Saudi Kayan Petrochemical Company (SAUDI KAYAN) announces that the Saudi Butanol Company (SaBuCo) signed a contractual agreement with Daelim (a South Korean based manufacturing company) on July 5, 2013 to construct the Butanol plant at a cost of SR 1,100 Million.

Construction is scheduled to begin in January 2014 with project completion anticipated for May 2015. SaBuCo is a special purpose joint venture company established by SAUDI KAYAN, Sadara Chemical Company (a joint venture developed by the Saudi Arabian Oil Company and The Dow Chemical Company), and SAAC (Saudi Acrylic Acid Company which is owned by TSOC, an affiliate of Tasnee Company and Sahara Petrochemicals Company) for the purpose of owning and financing a butanol production facility. The design capacity of this plant is 330,000 metric tons per annum of n-butanol and 11,000 metric tons per annum of iso-butanol.

 It is scheduled to start its trial run in the second quarter of 2015.

 The trial period is expected to last between 3 to 6 months with the financial effect realized in the financial statements after announcing the commercial operation.