Saudi Aramco to buy $7 billion stake in Petronas project

Saudi Aramco to buy $7 billion stake in Petronas project

Saudi Aramco has announced it will purchase a 50% stake in certain ventures and assets in the Refinery and Petrochemical Integrated Development (RAPID) project, developed by Malaysian company Petronas (PTG:MK).

The equity stake in the petrochemicals project is worth US$7 billion and was formalised by Malaysian Prime Minister Najib Razak and Saudi King Salman, who is currently on a state visit to the Southeast Asian country.

Aramco, one of the world’s most valuable companies, will supply up to 70% of the crude feedstock requirement of the refinery, with natural gas, power and other utilities to be supplied by Petronas.

RAPID is on track to go online in the early 2019, with Petronas reporting that almost 60% of the PIC development is complete.

The facility will have a production capacity of 7.7 million metric tonnes, and will produce 300,000 barrels per day.

Saudi Aramco chief executive officer Amin Nasser said: “Malaysia offers tremendous growth opportunities and today’s agreement further strengthens Saudi Aramco’s position as the leading supplier of petroleum feedstock to Malaysia and Southeast Asia.”