Riyadh – Mubasher: Saudi Aramco signed a Share Purchase Agreement (SPA) with Petroliam Nasional Berhad (PETRONAS) on Tuesday.
The deal allows Aramco to participate with its equity in PETRONAS’ Refinery & Petrochemical Integrated Development (RAPID) project in the southern Malaysian state of Johor, according to a statement.
Upon the completion of the transaction and other associated agreements, both partners will hold equal ownership in selected ventures and assets of the RAPID project within the Pengerang Integrated Complex (PIC), Aramco added.
“Today’s agreement further strengthens Saudi Aramco’s position as the leading supplier of petroleum feedstock to Malaysia and Southeast Asia, and with RAPID’s strategic location in a prolific hub, it would also serve to enhance energy security in the Asia-Pacific region,” Aramco’s CEO Amin Nasser commented.
Under the agreement, Aramco will supply the refinery with most of the crude feedstock requirements, while PETRONAS will provide it with natural gas, power, and other utilities.
RAPID’s refinery, with a capacity of 300,000 barrels of crude oil per day, will produce a host of refined petroleum products, as well as feedstock for its integrated petrochemical complex producing 3.5 million tonnes per annum of products, the statement added.
The project is part of the Pengerang Integrated Petroleum Complex (PIPC), which is situated 400 kilometres south of Malaysia’s capital Kuala Lumpur. The PIC development is almost 60% complete and is on track for a refinery start-up in 2019, Aramco stated.
