Petro Rabigh Initial Public Offering to Open January 5, 2008

petro rabigh initial public offering to open january 5, 2008 219 million shares offered, representing 25 per cent of company’s share capital Joint venture between Saudi Aramco and Japan’s Sumitomo Chemical World’s largest fully integrated oil refinery and petrochemical production facility to be built simultaneously IPO open to all Saudi nationals HSBC appointed Financial Adviser

Rabigh, Saudi Arabia, November 6, 2007: Petro Rabigh, a joint venture between Saudi Aramco and Sumitomo Chemical of Japan, announced today that the Saudi Capital Market Authority (CMA) has approved the company’s application to hold an Initial Public Offering (IPO). The offering consists of 219 million shares, representing 25 per cent of the company’s share capital. This landmark offering, which will be open to all Saudi nationals, will open for subscription on January 5, 2008, and close on January 12, 2008.

HSBC has been appointed the Financial Advisor for the IPO.

Petro Rabigh, launched in September 2005 as a 50:50 joint venture between Saudi Aramco and Sumitomo Chemical, is the largest combined oil refinery and petrochemical production facility ever built at one time. Saudi Aramco will supply Petro Rabigh with the feedstock necessary to operate the plant, including ethane, on a long-term, fixed-price basis and will market the refined products produced by Petro Rabigh. Sumitomo Chemical will provide petrochemical international sales and marketing expertise, as well as technology licensing.

The massive integrated facility is being constructed at the site of Saudi Aramco’s existing Rabigh refinery, which produces 19 per cent of the Kingdom’s current refining capacity. The existing Rabigh refinery, which was commissioned in 1989, has a current crude processing capacity of 400,000 barrels per day (bpd).

The US$10 billion project, located at the Red Sea port of Rabigh, is scheduled for completion in the third quarter of 2008 with commercial operations expected to commence in the fourth quarter of next year.

Upon completion, Petro Rabigh will be one of the world’s largest integrated refining and petrochemical complexes and one of the most sophisticated. The plant will combine a low-cost, long-term stable supply of feedstock from Saudi Aramco, the world’s largest oil company, with the petrochemical marketing and technical expertise of Sumitomo Chemical, the Japanese chemical giant.

Located on the west coast of Saudi Arabia, Petro Rabigh has excellent access to European and Asian markets. Benefiting from the supply of extremely competitively priced crude oil, ethane and butane and the strong distribution and marketing networks of its founding partners, Petro Rabigh will create new economies of scale that will make it one of the global leaders in the industry.

The partnership of the two blue-chip companies, and their complementary capabilities, provides Petro Rabigh with a unique and significant advantage: access to abundant raw materials and next- generation technologies. The project, say company executives, will further develop the Saudi petrochemical industry and boost the Kingdom’s overall economy.

Chief Executive Officer, President and Member of the Board of Directors of Petro Rabigh, Saad Al-Dosari said, “Today’s announcement is an extremely exciting one for Petro Rabigh and, most of all, for the people of Saudi Arabia. Indeed, our upcoming IPO represents a groundbreaking opportunity for all Saudis to directly participate in the Kingdom’s sustained economic growth and ongoing diversification. Backed by the heritage of Saudi Aramco and Sumitomo Chemical and with a vision of global growth, Petro Rabigh is very much a new kind of Saudi company for the new, dynamic and fast- moving Saudi Arabia.

“While focused on maximising efficiency and ensuring long-term profitability, we are also extremely keen to contribute to the prosperity and well-being of the people of Saudi Arabia. Petro Rabigh is a mega-project that will lead to the creation of in excess of a thousand direct employment opportunities for Saudi citizens and to the creation of new supporting industries. By hiring local graduates and providing job training, we will enrich our community and enhance the commercial reputation of Saudi Arabia as a whole. Today marks the beginning of a new chapter in the Kingdom’s economic history.”

Toshiki Matsumura, Chief Financial Officer, Member of the Board of Directors of Petro Rabigh, said, “Since joining Petro Rabigh two years ago, I have seen this incredible project move from the drawing board to reality at lightning speed. Working with colleagues from Japan, Saudi Arabia and across the world, we are all dedicated to making Petro Rabigh the most successful integrated facility of its kind here in Saudi Arabia and across the globe.

“The investment made by Sumitomo Chemical in Petro Rabigh is one of the largest investments ever made by a Japanese company in the Kingdom. Considering the strength of our historic trade and commercial relationship, the scale of this investment demonstrates the enormous faith we have in the future of this project. Global demand for petrochemical products continues to increase, especially in fast-growing Asian markets like India and China, and we are confident that Petro Rabigh will be seen as the supplier of choice in the decades to come.”

Timothy Gray, Chief Executive Officer of HSBC Saudi Arabia Ltd, said: “We are extremely pleased to be associated with Petro Rabigh’s IPO, which is a landmark for both the refining and petrochemical sector and the region. We are especially grateful for the opportunity to contribute to the success of one of the largest IPOs in the history of the Gulf, and one that has been designed to provide the maximum opportunity for Saudi retail investors.”

2007 Al Bawaba (www.albawaba.com)

Originally published by By Al-Bawaba Reporters.

(c) 2007 Al Bawaba. Provided by ProQuest Information and Learning. All rights Reserved.