ADVANCED PETROCHEMICAL AND SATORP SIGN A SHORT TERM AGREEMENT TO RAISE PROPYLENE SUPPLY TO 50,000 TONS

Advanced Petrochemical Company (Advanced) signed , June 9, 2012, a Sales agreement with Saudi ARAMCO TOTAL Refining and Petrochemical Company (SATORP) for the supply of 50,000 Metric Tons per year of Polymer Grade Propylene from the future SATORP Refinery in Jubail 2 to Advanced.
Under the Agreement, SATORP will supply 50,000 metric tons of Propylene per year to Advanced for an initial period of three (3) years with automatic renewals of successive one (1) year periods. The supply is expected to commence by 1st January 2014.
The Propylene will be supplied by SATORP via pipeline from Jubail 2 to Jubail 1. This Agreement will provide an additional supply of Propylene to Advanced which will contribute to higher production of Polypropylene and revenue increase resulting from the sale of such additional Polypropylene. The parties may also consider supply of additional quantities under the Agreement and a more long term supply of Propylene in the future.