Alujain announced that, under the esteemed patronage of His Highness Royal Prince Abdulaziz bin Salman Al Saud, Minister of Energy, a strategic agreement has been signed between both Alujain and Basell International Holdings B.V. The joint venture included LYB entering into a shareholding partnership with Alujain in the National Petrochemical Industries Company (NATPET) with a share of 35% of the company?s capital (as per the details in sale announcement), and LYB will invest and own 35% of the new project company capital. The cost of its capital investments is estimated at approximately seven and a half billion Saudi Riyals, after completing the current detailed engineering design (FEED) phase and evaluating the economic feasibility study for the new project, and obtaining the necessary approvals to invest in the new project, which will achieve the strategic goals of the two partners. This deal resulted in the signing of number of agreements, including: Agreement to purchase a share representing 35% of the shares of NATPET.

Shareholding Agreement between the two partners; Marketing And Offtake Agreement; Allocation of Volumes Agreement; Project Management Agreement and Cost Sharing and Reimbursement Agreement. It is expected that these agreements will contribute to achieving the goals of the energy sector within the Kingdom?s Vision 2030, by maximizing the added value to the national economy achieved from the sector. These agreements will support Alujain?s current expansion plans into High-end Co-polymer Grades and specialized polypropylene compounds of high value, with the aim of supporting local specialty plastics conversion manufacturers, enhancing the company?s global competitiveness and the sustainability of its business.

Upon completion of the detailed design phase, Alujain will receive compensation proportional to what was invested in the new project, in addition to a development bonus once final approvals are obtained for investment in the new project. Note that the agreements include preconditions and guarantees related to amendments to the structure of NAPTET and the new project company to suit the partnership agreement, and obtaining the necessary approvals from the relevant authorities according to the terms of the agreements.