KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) has signed a share purchase agreement with Saudi Arabian Oil Company (Saudi Aramco), allowing the latter to acquire a 50 per cent equity in the Petronas Refinery and Petrochemical Integrated Development’s (Rapid) refinery and cracker assets.
Petronas president and group chief executive officer Datuk Wan Zulkiflee Wan Ariffin said the partnership brought together the strategic fit of both companies.
“The partnership brings together two organisations with strong reputation, wealth of operational experience and proven record in developing mega projects, as well as having commercial network in different markets, globally,” he told reporters after signing the agreement worth RM31 billion on behalf of Petronas here yesterday.
Saudi Aramco was represented by its President and Chief Executive Officer Amin H Nasser.
The ceremony was witnessed by Prime Minister Datuk Seri Najib Tun Razak and the Saudi Arabian ruler King Salman Abdulaziz Al Saud.
Upon completion of the transaction, subject to regulatory approvals and the completion of other associated agreements, both partners would hold equal ownership in selected ventures and assets of the Rapid project within the Pengerang Integrated Complex (PIC), Wan Zulkiflee said.
He said Saudi Aramco would also supply up to 70 per cent of the crude feedstock requirement of the refinery, with natural gas, power and other utilities supplied by Petronas.
“Now, we have a long-term crude supply security because Saudi Arabia is the biggest exporter in terms of crude,” he said.
Wan Zulkiflee said Petronas is expected to complete all the conditions precedent to the agreement about one year upon its signing.
The Rapid project is part of the PIC development in Johor undertaken by Petronas and is positioned to be a regional downstream oil and petrochemical industrial hub.
Rapid’s refinery has a capacity to refine 300,000 barrels of crude per day, as well as a host of refined petroleum products, including gasoline and diesel which meets Euro 5 fuel specifications.
It can also produce feedstock for its integrated petrochemical complex, churning out 3.5 million tonnes per annum of products. — Bernama