press release

Chevron Press Release - Saudi Chevron Petrochemical Celebrates Opening

JUBAIL, SAUDI ARABIA, Feb. 1, 2000 -- Saudi Chevron Petrochemical today celebrated the opening of the joint venture's $650 million plant to produce benzene and cyclohexane. The petrochemical complex, a 50-50 joint venture of Chevron Chemical Co. and the Saudi Industrial Venture Capital Group, was delivered under budget and with one of the best safety performance records in the worldwide construction industry.

At the dedication ceremony, Vice Chairman of Chevron Corp. Jim Sullivan said, "Today, we celebrate the beginning of a new kind of partnership. Our joint venture, Saudi Chevron Petrochemical, is the first, totally private, basic petrochemical enterprise in the Kingdom of Saudi Arabia."

Sullivan honored the late Sheikh Ahmed Al Juffali and thanked Sheikh Abdulaziz Al Quraishi, both of whom, pioneered and led the venture through project approval and development stages. He cited many Saudi business leaders and investors who formed the Saudi Industrial Venture Capital Group, and he expressed appreciation to the Royal Commission and Saudi Aramco for supporting the project and for providing the vital feedstock needed to ensure success.

The Saudi plant will use Chevron's AROMAX® process to convert naphtha feedstock to benzene and cyclohexane. Saudi Arabian styrene manufacturers need benzene and there are strong cyclohexane markets in Europe and Asia. Chevron Chemical Co. is the marketer for exporting benzene and cyclohexane. In developing the new plant, Saudi Chevron Petrochemical worked closely with one of Chevron's other AROMAX® plants in Pascagoula, Miss. As a result, the new plant is expected to show better catalyst performance than other plants.

Chevron's association with Saudi Arabia dates back more than 65 years. "This plant opening that we celebrate today demonstrates Chevron's continued commitment toward maintaining a long and illustrious relationship with Saudi Arabia," said Sullivan.

Updated: February 2000