RIYADH: Saudi Arabia’s Saudi Arabian Oil Co (Aramco) is acquiring a 50 per cent stake in Malaysia’s Pengerang Refinery and Petrochemical Integrated Development (Rapid) project’s selective assets, pumping $7 billion to hold stake in refinery and cracker assets in the petrochemical project in southern Johor. The two state-owned oil firms have signed the share purchase agreement on Tuesday which has made Aramco the single largest investor in Malaysia’s $27 billion RAPID project.
This is also timely for Aramco which is going public next year and “investors will be looking for a company that has breadth in portfolio, balance, values for shareholders across the value chain,” according to Aramco. Aramco entered into a share purchase agreement with Petroliam National Bhd to equally own some facilities, including 300,000 barrels per day processing capacity and a steam cracker plant which can produce three million tonnes of petrochemicals annually. The signing ceremony was held in conjunction with a state visit of Saudi Arabia’s Ruler, King Salman bin Abdulaziz Al-Saud to Malaysia and Prime Minister Datuk Seri Najib Tun Razak and King Salman witnessed the ceremony. Also present on the occasion were Minister in the Prime Minister’s Department Datuk Seri Rahman Dahlan; Saudi Arabia’s Energy, Industry and Mineral Resources Minister Khalid Al-Falih– Saudi Aramco chairman and Saudi Aramco’s President and CEO, Amin H Nasser.
RAPID’s first phase is targeted for completion mid-2019 and RAPID will house petrochemical plants, liquefied natural gas import terminal and a regasification plant. It may be noted here that RAPID is a part of 22,000-acre Pengerang Integrated Petroleum Complex, set to become one of Asia’s biggest hubs for oil storage, fuel refining and petrochemical production, as well as imports and exports of liquefied natural gas. According to the the joint venture Aramco will supply up to 70 per cent of the crude feedstock requirements of the refinery while Petronas will supply gas, power and other things. “Now we have long-term crude supply security for the refinery. This region is also a focus for Aramco, and together we will develop this business,” said Petronas group chief executive officer (CEO) Datuk Wan Zulkiflee Wan Ariffin told the media on Tuesday.
