press release

Chevron Press Release - Chevron Chemical Company To Proceed With Construction Of $650 Million Plant

SAN RAMON, Calif., Sept. 24, 1996 -- Chevron Chemical Company and Saudi Industrial Venture Capital Group (SIVCG) announced today that they have formed a 50-50 joint venture company to build and operate a $650 million petrochemical complex in Al-Jubail, Saudi Arabia. The company is known as Saudi Chevron Petrochemical, a Limited Liability Partnership.

Construction of a grassroots 480,000 ton-per-year benzene plant and a 220,000 ton-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.

"As the original discoverer of oil in Saudi Arabia, Chevron is excited to continue its participation in the Kingdom with a major petrochemical investment," said John Peppercorn, president of Chevron Chemical Company. "This project fits very well with our long-term strategic intent to expand our production of low-cost benzene and other aromatic chemicals through the international deployment of our Aromax Process technology."

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. Sheik Abdulaziz Al Quraishi, chairman of SIVCG, said, "We are excited to be participating in this project as it supports the Kingdom's goals to increase private sector investment in basic industry, increase good employment opportunities for Saudis, and bring new hydrocarbon processing technology to the Kingdom."

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 Corporation.

Updated: September 1996