Key Issues And Considerations In Developing Petrochemical Projects In Newly Emerging Markets

Introduction

This article provides a brief overview on some of the key issues and considerations that will need to be analysed by foreign sponsors (the "Foreign Sponsors") looking to develop petrochemical projects in newly emerging markets. Most petrochemical projects development in newly emerging markets, will involve the Foreign Sponsors working in collaboration with a state or a local entity (the "Host Sponsor") nominated by the government of the host country (together with the Foreign Sponsors, the "Sponsors").

In light of the significant costs associated with the development of a large-scale petrochemical project, the Foreign Sponsors will generally consider a variety of possible financing options including project financing, corporate financing or host government guaranteed financing. The availability of international project financing will depend on whether a range of legal/commercial/political issues can be addressed in a manner satisfactory to the