SABIC and Saudi Aramco signed a memorandum of understanding (MoU) to develop a fully integrated crude oil to chemicals complex (COTC) in Saudi Arabia. The new complex is expected to process 400k barrels per day of crude oil, which will produce 9mn tonnes of chemicals and base oils annually. According to Aramco's CEO, Amin Nasser, a final decision on whether to go ahead with the project will be taken by end-2019. If the companies decide to move ahead with the project, operations would be expected to start by 2025 and financial impact would be reflected as soon as the company announces commercial production. Based on the release, the project comes in line with Saudi vision 2030, as the subject will add value to crude oil production.  
 
SABIC: SAR100.21 as of 26 Nov. 2017, Rating: Neutral, TP: SAR105.00/share, MCap: USD80,168mn, SABIC AB/2010.SE