| Saudi International Petrochemical Company (Sipchem)
Saudi International Petrochemical Company (Sipchem)
Saudi International Petrochemical Company (Sipchem) has recently taken proactive steps to reinvigorate its operations in the wake of falling profits caused by low commodity prices. A major part of this strategy has involved the issuance of Sukuk sharia-compliant bonds worth SAR 1.8bn, which will provide capital for further investment and expansion, as well as satisfying existing business obligations. Ensuring the company and its bond structures are sharia-compliant is an important task for the legal team that, if done incorrectly, could lead to reputational damage to the firm. The company has also agreed a three year contract with Jacobs Engineering Group for them to provide engineering services at Sipchem’s facilities at Jubail Industrial City. Headed by general counsel-legal and compliance Keith Hutton, the legal department at Sipchem has overseen these developments, in which Sipchem looks to protect its operations in the competitive Saudi petrochemical industry. Hutton is a Sipchem veteran, having been at the company since 2005, and has seen the company expand extensively during this period.