Tauber Petrochemical Co. has announced its departure from ExxonMobil
Petrochemical co. has been a top employer in the UAE, and recently announced it would be shutting down operations in the oil-rich country.
PetroChem has been the largest exporter of chemicals to the UAE.
The company said it had been forced to make the decision after the UAE Government imposed an oil embargo on the country.
The move comes after the U.S. State Department has warned the UAE against using its natural gas reserves to support terrorism, citing a report that claimed the country has an active pipeline for exporting banned weapons and equipment to Iran.
PetroChem also has ties to the Emiratis government, having been awarded a contract for gas and oil processing in the country in 2009.
The decision to leave ExxonMobil comes as the company has announced it will be taking a majority stake in a new chemical company.
ExxonMobil announced the company will take a $10 billion stake in NewChem Inc., with the new company acquiring all of the ExxonMobil’s shares in ExxonMobil.
Petra has announced that it will remain part of the conglomerate, and said it would remain independent.
The UAE government had said it wanted ExxonMobil to take a 50 percent stake in the company, but ExxonMobil said the Emirati Government wanted to retain control.