Under the agreement, Basell will take an equity stake of 32-35 per cent in the estimated SR 2,000 million ($533 million) project, with the exact figure pending the value of the engineering, procurement and construction (EPC) contract, which is presently being tendered. Basell will also provide its Spheripol PP technology for the project and will be the sole offtaker for the 450,000 tonnes a year of PP. The US' UOPwill provide its Oleflex technology for the PDH unit, which will receive propane feedstock from Saudi Aramco.

Companies such as Italy's Tecnimont, Japan's Toyo Engineering Corporationand Lurgiand Linde, both of Germany, are expected to bid for the EPC contract by mid-February. US-based Foster Wheeleris the project management consultant.

Basell is also in advanced negotiations with three local firms - Sahara, Saudi International Petrochemical Company (Sipchem)and Tasnee Petrochemicals- for a 25 per cent stake in a major olefins complex at Jubail. An agreement, which will also include the supply of Basell high-density polyethylene (HDPE) technology, is expected to be concluded in early 2005. Basell is also a 25 per cent stakeholder in Saudi Polyolefins Company (SPC), another Jubail-based PDH/PP project, with Tasnee holding the remaining shares (MEED 26:11:04).