Business

Saudi Aramco buys $7 bln stake in RAPID project

Work in progress at the Pengerang integrated complex.

Work in progress at the Pengerang integrated complex.

Syndicated News
Written by Syndicated News

KUALA LUMPUR — February 28, 2017: Saudi oil giant Aramco will buy an equity stake in Malaysian firm Petronas’ refining and petrochemicals project, the companies confirmed today, investing a total of $7 billion.

In a joint statement, the firms said Aramco will take a 50 per cent stake in select ventures and assets in the Refinery and Petrochemical Integrated Development (RAPID) project developed by state-controlled Petronas.

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 per cent stake in RAPID’s refinery and cracker project.

Aramco will supply up to 70 per cent of the crude feedstock requirement of the refinery, with natural gas, power and other utilities to be supplied by Petronas, according to the statement.

RAPID, located in the southern 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
of 2019. — Reuters

Comments

comments

About the author

Syndicated News

Syndicated News

News sourced from Bernama, Reuters, AFP and other accredited news agencies, including credible blogsites and news portals.