Sabic and ExxonMobil Chemical have announced that they have begun a feasibility study on a project that could further develop their two joint petrochemical ventures at Yanbu and Jubail, Sabic said.

The project, which is expected to start up in 2011, aims at developing a domestic supply of carbon black and rubber as well as thermoplastic specialty polymers (EPDM, TPO, Butyl, SBR/PBR) for use in emerging local and international markets, the release said.
The project expects to utilise feedstock allocated by the Saudi Arabian Ministry of Petroleum & Mineral Resources and other sources, which will be processed at the Saudi Yanbu Petrochemical Company (Yanpet) plant in Yanbu and the Al-Jubail Petrochemical Company (Kemya) plant in Jubail.
Meanwhile, Sabic said it had reached a final settlement in a legal dispute with US oil major ExxonMobil Corp.
“Sabic has reached a full and final settlement of its disputes with ExxonMobil arising from technology and a patent that can be used in the production of polyethylene,” a Sabic statement said.
“Pursuant to the settlement, Sabic and its worldwide affiliates will have the right to use the technology royalties-free and will equally share in any third-party royalties from the past or future licensing of the technology by ExxonMobil,” it said.
“All disputes and litigations between Sabic and its partner ExxonMobil have thus been fully and finally settled,” the statement added.
The US Supreme Court declined last October to hear an appeal by Sabic in the dispute.
Sabic had earlier paid Exxon $475 million after the Delaware Supreme Court upheld a trial court judgment in Exxon’s favour.