press release

Chevron Press Release - Chevron Chemical Breaks Ground On $650 Million Plant In Saudi Arabia

AL-JUBAIL, Saudi Arabia, March 29, 1997 -- Chevron Chemical Co. broke ground here today on a $650 million petrochemical complex in a ceremony attended by His Royal Highness Prince Mohammed Bin Fahd, Saudi Industrial Venture Capital Group Chairman Sheikh Abdulaziz Al Quraishi and Chevron Chairman Ken Derr.

Chevron Chemical and Saudi Industrial Venture Capital Group (SIVCG) have formed a 50-50 joint venture company to build and operate the plant. The company is known as Saudi Chevron Petrochemical, a Limited Liability Partnership.

Construction of a 482,000-tons-per-year benzene plant and a 220,000-tons-per-year cyclohexane unit is scheduled to be completed in mid-1999. Chevron's proprietary Aromax® Process technology will be used to manufacture benzene from a natural gasoline feedstock supplied by Saudi Aramco. Institut Francais du Petrole has licensed the technology that will be used to manufacture cyclohexane from the benzene. Products manufactured at the plant will be sold in Saudi Arabia, the Far East and Europe.

"This project supports two goals which the Kingdom has said are among its highest priorities," said Chevron Chairman Ken Derr. "These (priorities) are increased private-sector investment in Saudi Arabia and the growth and diversification of the downstream and chemical industries in the Kingdom. I am especially pleased to see Aromax® at the core of this project. Sharing this technology with new partners will help Chevron grow its international chemicals presence and yield benefits for everyone involved."

SIVCG is a joint stock company formed by a group of 61 leading Saudi businessmen and five joint stock companies who have joined together to seek out and invest in industrial development in Saudi Arabia.

Chevron currently operates an Aromax® Process benzene manufacturing plant in Pascagoula, Miss., and a cyclohexane plant in Port Arthur, Texas. Chevron Chemical, headquartered in San Ramon, Calif., is a wholly owned subsidiary of Chevron Corp.

Updated: March 1997