In a joint statement today, the companies described the strategic alliance as a historic partnership between two of the largest and most successful national oil companies in the world.
“These joint-ventures allow the parties equal ownership and participation in the operations of the refinery, cracker and selected petrochemical facilities in Rapid.
“Through this collaboration, Saudi Aramco will supply 50 per cent of the refinery’s crude feedstock requirements with the option of increasing to 70 per cent, while natural gas, power and other utilities will be supplied by Petronas and its affiliates,” the statement said.
It said both companies would also share the rights to offtake the production of the joint-ventures on an equal basis.
The refinery which has a capacity of 300,000 barrels of crude per day will produce a range of refined petroleum products, including gasoline and diesel, which meet Euro5 fuel specifications, and will also provide feedstock for PIC, with a nameplate capacity of 3.3 million metric tonnes per annum
The PIC project is 87 per cent completed and is expected to be on track for the refinery start-up in the first quarter of 2019.
Petronas executive vice-president and chief executive officer (Downstream) Datuk Md. Arif Mahmood said the partnership with Saudi Aramco was the result of the collective effort of key stakeholders in the two governments, in addition to the two companies.
Saudi Aramco downstream senior vice-president Abdulaziz Judaimi said the agreement strengthened Saudi Aramco’s position and growth in Southeast Asia through crude supply and world-scale downstream operations.
PIC covers 2,525 hectares and is part of the 8,903-hectare Pengerang complex. — Bernama