State oil giant Aramco said it has reached an agreement with leading petrochemical group Sabic to transfer the marketing and sales responsibility for a number of its petrochemicals and polymers products to Sabic, and the offtake and resale responsibility of a number of Sabic products to Aramco Trading Company (ATC).
The effect of these changes, planned to be implemented on a phased basis during 2021, subject to the necessary consents being obtained, will focus Sabic on petrochemicals products and ATC on fuel products.
This is a significant step in aligning the Aramco and Sabic strategies, following Aramco’s acquisition of a 70% stake in Sabic in June 2020.
Aramco and Sabic will continue to review options for further global marketing and sales transfers across product-producing companies within the Aramco group portfolio.
The changes will drive further operational efficiencies, strengthen the brands of both companies and their combined products and services offering, and help to maintain competitiveness. Customers will benefit from improved product range and availability, ordering and points of sale, supply chain, shipping reliability, and after-market services and solutions, said the report.
Aramco Trading Company President and CEO Ibrahim Al Buainain said: "The transfers reflect our shared commitment to capitalize on the complementary nature of Aramco and Sabic’s respective product portfolios as we strive to create added value for our customers and shareholders."
"Together, ATC and Sabic are focused on providing a world-class products and services offering. These changes will place us in an even stronger position to deliver market-leading innovation and value," he added.
Sabic Executive Vice President (Petrochemicals) Abdulrahman Al Fageeh said: "By leveraging and optimizing our complementary combined product portfolios we will create a one-stop shop for the benefit of our customers globally, including in strategically important geographies, especially across Asia."
"These marketing and sales transfers and operational changes are intended to put us closer to market, driving greater agility and flexibility to deliver added value to customers and power their ambition," he added.