White & Case Advises SABIC on US$2.7 Billion Joint Venture With SINOPEC

Beijing, Riyadh  November 25, 2009 ... Global law firm White & Case LLP represented Saudi Basic Industries Corporation (SABIC) in connection with their RMB 18.3 billion (US$2.7 billion) joint venture with China Petroleum & Chemical Corporation (SINOPEC). The formation of the joint venture during October 2009 was announced at an inauguration ceremony at the Great Hall of the People in Beijing on 3 November, 2009. The joint venture will own and operate a new petrochemical complex in the coastal municipality of Tianjin southeast of Beijing. The petrochemical complex consists of a one million ton per annum ethylene cracker and eight downstream derivative units. The complex will produce 3.2 million tons of various chemical and petrochemical products annually. The complex is expected to be ready to begin production by the first quarter of 2010.

White & Case has been advising SABIC since August 2007, when SABIC signed a letter of intent with SINOPEC on all aspects of the joint venture, including due diligence, corporate structuring, construction management, technology licensing, land acquisition, environmental matters, feedstock, industrial gas and utilities supply involving multiple affiliates and third parties, and product lifting and marketing.

"This joint venture project is a strong indication of the trend of increased foreign investment activity between Saudi Arabia and China," says partner Steve Payne, who led the White & Case team advising SABIC.

White & Case's Beijing-based team was led by Steve Payne with assistance from Christopher Corr, Vivian Tsoi, Zhang Xi, Joanne Ban, Patrick Ma, Simon Ross, Bian Jiang and Linghu Qian and other lawyers in the Firm's global network, Steve Betensky, David Ernst and Sean Wang (New York), Ian Reynolds (Brussels), Ellis Baker and Christopher Wong (London) and Peter Ni, Rose He, Amy Guan, Li Li and Aileen Li (Shanghai).

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