Saudi Basic Industries Corporation (SABIC) has extended its joint venture (JV) with the Japan Saudi Arabia Methanol Company (JSMC) in Saudi Methanol Company (Arrazi) for 20 years, after receiving regulatory approvals, Mubasher reported.

SABIC will own 75% of the JV’s shares, while JSMC will hold the remaining 25% stake, according to SABIC’s statement to the Saudi Stock Exchange (Tadawul).

“Japan Saudi Arabia Methanol Company (JSMC) will pay SABIC $1.35 billion in three installments, ending in 2021,” SABIC said.

The financial impact of extending the JV will be in effect in Q2 2019. In addition, Arrazi’s financial results will depend on the new ownership structure.