KUCHING: BASF and Petroliam Nasional Bhd (Petronas) joint project in Pengerang, Johor, has been terminated.
A statement released yesterday said the heads of agreement (HoA) between the two for a joint speciality chemicals venture within Petronas’ Refinery and Petrochemical Integrated Development (Rapid) project in Pengerang has been terminated by mutual agreement.
The HoA was signed on March 5, 2012 for a proposed partnership to jointly own, develop, construct and operate production facilities for a host of specialty chemical products in Rapid.
Following negotiations, Petronas and BASF concuded that it would be in their mutual interest to terminate the HoA as both parties were unable to come to an agreement on the terms and conditions for the implementation of the proposed venture.
Notwithstanding this decision, both parties are still committed to continuing their existing long-term relationship at BASF Petronas Chemicals in Gebeng Industrial Zone, Kuantan, Pahang.