Saudi Basic Industries Corporation (SABIC) [2010.SE] and Saudi Arabian Oil Company (Aramco) will be signing a heads of agreement (HOA) today- 28 June, 2016 - to jointly study the development of a crude-oil-to-chemicals project in Saudi Arabia. The decision to enter the agreement was based on results from the initial study that was conducted by SABIC, according to the announcement. In addition to agreeing to conduct feasibility studies for the project, the HOA also defines joint cooperation frameworks, which would later form the basis of the establishment of a joint venture (JV) project in the event of a positive conclusion to the studies. As we have previously stated, our main concern with such a project would be the very high price tag (estimated to be cUSD30bn), the untested nature and scale of the technology required for such a project and the historically poor returns on downstream projects in Saudi Arabia. (Tadawul, Yousef Husseini)   SABIC: SAR81.56 as of 27 June 2016, Rating: Neutral, FV: SAR90.00 per share, MCap: USD65,248 million, SABIC AB / 2010.SE