Shell said it completed the sale of its 50 per cent stake in SADAF, the Saudi petrochemical joint venture, to partner SABIC for US$820 million, as part of its wider divestment programme that will focus activities on high-growth investments.
The sale, announced earlier this year, was completed following anti-trust filings in the relevant countries and regulatory approval for Saudi Arabia, Shell said in a statement. The joint-venture, formed in 1980, was due to expire in 2020.
The sale, which falls under its $30 billion divestment programme, will help Shell to be more selective in investments that support the growth of its global chemicals business.
SABIC, which now fully owns SADAF, will be able to optimise operations at the petrochemical plant by integrating them with its other affiliates.
According to Shell, SADAF features six world-scale petrochemical plants with a total average output of more than 4 million metric tons of chemicals used in auto parts, home appliance parts, detergents, tires, personal care and other products.
Shell said the sale does not impact its other investments in Saudi Arabia.