Riyadh – Mubasher: Saudi Aramco and Malaysia-based Petroliam Nasional Berhad (Petronas) have commenced talks with several banks to replace an $8 billion short-term loan for a joint venture (JV) with a long-term facility for the same value, Reuters reported, citing informed sources as saying.
The potential loan will mature within a period exceeding 10 years, the news agency added.
Neither Aramco nor Petronas issued official statements to confirm or deny the loan talks.
The banks, which may participate in arranging the loan, include BNP Paribas, HSBC, JPMorgan, Standard Chartered, Citibank, First Abu Dhabi Bank, and ING Bank.
The JV in question called Refinery and Petrochemical Integrated Development (RAPID), worth $27 billion, is located between the Malacca Strait and the South China Sea, and acts as conduits for Middle Eastern oil and gas that will be delivered to China, Japan, and South Korea.
