Saudi Aramco has agreed to transfer its equity holdings in the PRefChem refining and petrochemical joint ventures in Johor, southern Malaysia, to Malaysian state-owned Petroliam Nasional Berhad (Petronas).
The equity transfer will end the eight-year-long 50:50 partnership on mutually agreed terms, making PRefChem a wholly owned subsidiary of Petronas, the companies said in a joint statement.
The deal is subject to closing conditions. No financial details were released.
Full ownership will allow Petronas to source crude worldwide and meet regional fuel demand. The move will allow Aramco to pursue new investments in line with its downstream strategy, the statement said.
PRefChem includes Pengerang Refining Company and Pengerang Petrochemical Company within the Pengerang Integrated Complex in Johor.
The refinery has a capacity of 300,000 barrels per day and supplies feedstock to the petrochemical complex, which has a nameplate capacity of 3.4 million tonnes per year, according to the company’s website.
In February 2017 Aramco agreed to invest $7 billion in the PRefChem project during a state visit to Malaysia by Saudi Arabia’s King Salman. The two joint ventures were formally set up in March 2018.