Sabic withdraws from $1bn project talks


Saudi Basic Industries Corp (Sabic) has pulled out of talks on taking a stake in a $1 billion (Dh368 billion) petrochemical project, the Middle East Economic Digest (MEED) reported without citing a source.


Sabic had agreed with Yanbu-based Osos Petrochemicals to consider taking a 35 per cent stake in the joint venture polybutylene terephthalate (PBT) complex, the world's largest chemical firm by market value said in January.


PBT's offtake cost could be a reason for the breakdown of the talks, MEED said without saying how it obtained the information.


Osos aims to produce engineering plastics and specialty products and plans to start production in 2010, according to its website. It also plans to sell shares in an initial public offering, Saudi Oil Minister Ali Al Naimi said in April 2006. (Reuters)