Saudi Aramco Signs MOU for Rabigh Project

Dhahran, April 20, SPA -- Saudi Arabian Oil Company "Saudi Aramco",
Sumitomo Chemical Co. Ltd "Sumitomo Chemical" and Rabigh Refining and
Petrochemical Company "Petro Rabigh" signed on Sunday a Memorandum of
Understanding (MoU) on conducting a feasibility study for the
development of Rabigh Phase II Project for a major expansion of the
existing petroleum refining and petrochemical production complex
currently being commissioned by Petro Rabigh.


Khalid A. Al-Falih, President and Chief Executive Officer of Saudi
Aramco said,"Today’s signing ceremony marks yet another milestone in
the ongoing progress of the joint venture partnership by Saudi Aramco
and Sumitomo Chemical to create one of the world’s largest integrated
refining and petrochemical facilities, help meet growing demand
worldwide for high-quality energy products, and leverage this
downstream operation to spur the development of complementary
manufacturing and conversion industries”.


"It is gratifying to embark on the feasibility study for the Rabigh
II Project at the same time as Petro Rabigh is successfully starting
up the Rabigh I Project. This is another significant achievement in
our joint efforts that demonstrates the strength of our partnership
built upon mutual trust," said Hiromasa Yonekura, Chairman of
Sumitomo Chemical.

The feasibility study is an initiative by Saudi Aramco and Sumitomo
Chemical, with Petro Rabigh providing support and assistance, and it
will evaluate the viability of the Rabigh II Project, including the
investment amount, to achieve the following: expanding the existing
Petro Rabigh’s ethane cracker for an additional 30 million standard
cubic feet per day of feedstock ethane; building a new aromatics
complex using around 3 million tons per year of naphtha; and
constructing various units of petrochemical products of higher value
and specialty, including EPR, TPO, MMA, PMMA, LDPE/EVA, caprolactam,
polyols, cumene, phenol/acetone, acrylic acid, SAP and Nylon-6.


Saudi Aramco and Sumitomo Chemical will complete the feasibility
study by the third quarter of 2010, and once the Rabigh II Project is
proven viable with attractive economics, Petro Rabigh will be invited
to decide on its implementation.


The Rabigh II Project is a major expansion of the Rabigh I Project
to complete the development of a world-class petrochemical complex
and will produce a diverse slate of petrochemicals, most of which are
newly introduced to the Kingdom, to complement and strengthen the
Petro Rabigh Project.


The Rabigh II Project will utilize leading-edge technologies from
Sumitomo Chemical and other companies, and explore maximization of
synergies between the Rabigh II Project and the Rabigh I Project, the
utilization of Saudi manpower, and development of the conversion
industry.


The Rabigh II Project major milestones include: award of Project
Management Services Contract for the feasibility study in May 2009,
Technology Licensing Agreements in June 2010 and the start up by the
third quarter of 2014.


--SPA