Saudi Aramco invests US$7b in Petronas' Rapid refinery project

NST

KUALA LUMPUR: Saudi Arabian Oil Company (Saudi Aramco) is investing US$7 billion (RM31 billion) for a 50 per cent stake in Petroliam Nasional Bhd's Refinery and Petrochemical Integrated Development (Rapid) project.

Under a deal signed today, Saudi Aramco will also be supplying up to 70 per cent of the crude feedstock requirements of the refinery. Petronas, on the other hand, will supply natural gas, power and other utilities.

Both parties will hold equal ownership in selected ventures and assets of the Rapid project within Pengerang Integrated Project (PIC).

The share purchase agreement (SPA) signed today was witnessed by Saudi ruler King Salman Abdulaziz Al-Saud and Prime Minister Datuk Seri Najib Razak.

The signing was held in conjuction with King Salman's state visit to Malaysia.

Petronas president and group chief executive officer Datuk Wan Zulkiflee Wan Ariffin said the partnership will bring together two strong organisations in developing mega projects as well as having commercial networks in different markets globally.

Saudi Aramco president and chief executive officer Amin H Nasser said the agreement further strengthens its position as a leading supplier of petroleum feedstock to Malaysia, Southeast Asia and Asia Pacific.

"Malaysia and Southeast Asia offer tremendous growth opportunities and with Rapid's strategic location in a prolific hub, it would serve to enhance energy security in the Asia Pacific region," he said.

With capacity to refine 300,000 barrels of crude per day, Rapid's refinery will produce a host of refined petroleum products as well as feedstock for its integrated petrochemical complex producing 3.5 million tonnes of products annually.

Situated in the southern region of Malaysia, the PIC development is currently 60 per cent completed and on track for start-up in 2019. - by Zarina Zakariah, Amir Hisham Rasid, Adrian Lai and Hana Naz Harun