Allen & Overy said today that the Jubail Acetyls Complex project, which will include a world-scale carbon monoxide plant, was significant not only as a private sector deal in Saudi Arabia's state dominated market, but also in helping develop technical skills among local Saudis in the Kingdom's high profile Saudization programme.
Booming oil prices and the associated boom in oil infrastructure-related development in the Middle East has seen many nations keen to see as much of the windfall as possible stay within the region.
The Jubail Acetyls Complex, on which Allen & Overy advised Saudi International Petrochemical Company (Sipchem) and National Power Company & Helm Arabia as sponsors, highlighted the role companies can play in developing local Saudi expertise for the future. Sipchem is training more than 100 young Saudis in the technical skills required for them to take up active on-site jobs when the plants become operational in the first quarter of 2009.
The Jubail Acetyls Complex is a three-plant integrated facility, comprising a 460,000 mtpa acetic acid plant, a 330,000 mtpa vinyl acetate monomer (VAM) plant and a 335,725 mtpa carbon monoxide plant. The carbon monoxide plant is projected to be the largest such facility in the world and will supply primary feedstock for the production of acetic acid and VAM which will be produced by the other two plants of the complex. In addition the carbon monoxide produced will be used as feedstock for the multi-billion dollar olefins & derivatives complex which is currently under development.
The world scale capacity acetic acid and vinyl acetate monomer plants differ from the usual mainstream chemical plants in that there is a significant barrier to entry for these plants due to there being very few technology suppliers capable of providing the required technology.
This USD564,541,286 financing was a substantial deal for a private sector entity in Saudi Arabia, involving a syndicate of nine local and regional banks, with HSBC acting as financial adviser. The structure also includes a completion guarantee which effectively eliminates the principal risks associated with the construction and commission phases of the project. Work has started to convert part of the financing into an Islamic Ijara lease structure.
Allen & Overy partner Ian Ingram-Johnson commented, "Allen & Overy prides itself on providing the best local, as well as the best international advice to our clients. The Jubail Acetyls Complex is another example of how we bring together the best of both and help our clients contribute to the development of the local market in the process."
The Allen & Overy Dubai-based team was led by banking partner Ian Ingram-Johnson, assisted by senior associates Tarek El-Assra, Sachin Karia, Amanda Rologas, Kathryn Hartas and Neil Perrin.
-Ends-
Notes for Editors:
1. Allen & Overy is an international legal practice with over 5,000 staff, including some 450 partners, working in 24 major centres worldwide.
2. Allen & Overy in Dubai was named "Middle East Law Firm of the Year" and "UAE Law Firm of the Year" awards at the IFLR Middle East Awards 2006, and "Middle Eastern Law Firm of the Year" at the Chambers Global Awards 2006.
3. Allen & Overy in Dubai has 50 staff with 7 partners and 25 associates.
4. In this press release "Allen & Overy" means "Allen & Overy LLP" and/or its affiliated undertakings.
5. Any reference to a 'partner' means a member of Allen & Overy LLP or an employee of or consultant to Allen & Overy LLP who has equivalent standing and qualifications, or a member, shareholder, partner of or consultant to an affiliated undertaking who has equivalent standing and qualifications.
For further information, please contact:
Ian Ingram-Johnson
Tel: +971 (0)4 303 5623
E-mail: ian.ingram-johnson@allenovery.com
Campbell McIlroy
campbell.mcIlroyHYPERLINK
Tel: +44 20 3088 2783
E-mail: Stephen.jags@allenovery.com
© Press Release 2007
