KUALA LUMPUR Feb 28 Saudi oil giant Aramco
IPO-ARMO.SE will buy an equity stake in Malaysian firm
Petronas' refining and petrochemicals project in the southeast
Asian country, the companies confirmed on Tuesday, investing a
total of $7 billion.
In a joint statement, the firms said Aramco will take a 50
percent stake in select ventures and assets in the Refinery and
Petrochemical Integrated Development (RAPID) project developed
by Malaysian state-controlled Petroliam Nasional Berhad, known
The deal signing was formally witnessed by Malaysian Prime
Minister Najib Razak and Saudi King Salman, currently on a state
visit to Malaysia.
Petronas' Chief Executive Officer Wan Zulkiflee Wan Ariffin
told reporters Aramco will take a 50 percent stake in RAPID's
refinery and cracker project.
Aramco will supply up to 70 percent of the crude feedstock
requirement of the refinery, with natural gas, power and other
utilities to be supplied by Petronas, according to the
RAPID, located in the southern Malaysian state of Johor,
will contain a 300,000 barrel-per-day oil refinery and a
petrochemical complex with a production capacity of 7.7 million
metric tonnes. It is expected to go online in the first quarter
(Reporting by Emily Chow; Writing by A. Ananthalakshmi; Editing
by Kenneth Maxwell)