Global Chemical Company in the final stage of construction of manufacturing facility in Abu Dhabi

The plant will manufacture a Sodium Asphalt Sulphonate product to be sold under the brand name of CORT SAS.

Located in the Industrial City of Abu Dhabi (ICAD I), the plant is scheduled to commence production by December 2008 and the initial production capacity will be approximately 4,500 MT a year.

The manufacturing of sulphonated asphalt by Global Chemical will be very important to the drilling industry and expanding operations in the Middle East. Sulphonated asphalt is widely used in large quantities around the world by oil and gas companies to drill oil and gas wells successfully where troublesome shales create problems. This product has enabled the successful drilling and placement of very long horizontal laterals out to 35,000 feet because of the reduction in torque and drag, inhibition of shales and the lowering of fluid loss at high reservoir temperatures.

The multi-purpose manufacturing plant will occupy approximately 30,000 square meters including storage facilities for all raw materials and products. All designs, planning and approvals for the plant were developed from local and international engineering firms and from personnel who have been involved in similar types of projects.

One of the major raw materials required to manufacture sulphonated asphalt is sulphur trioxide (SO3) which is not available in the region. To counteract this, Global Chemical Company has established a purpose built manufacturing plant for SO3 designed by world leaders to ensure that the product is available alongside CORT SAS.

Adel Baobaid, Vice President of AlMansoori Petroleum Industries, said:

"Global Chemical looks forward to serving the many oil operating companies in the region which have encouraged us to establish a local manufacturing plant for this extremely important product required in the Oil & Gas Industry."

"We are committed to ensuring the new plant will provide the technology and highest levels of quality to meet industry standards and specifications. The added flexibility in the plant equipment and processing conditions will attract outside companies to come to Global to have their particular sulfonated asphalt requirement manufactured at this plant on a toll-basis."

"It is our intention to expand the scope of the manufacturing of specialized drilling chemicals within the facility. The second product to be manufactured may be Sodium Gilsonite Sulphonate for use in both sea water based drilling fluids and in oil based drilling fluids."