Saudi Aramco and Malaysia's oil and gas company Petronas formed a strategic partnership to enhance the value of their petrochemicals projects through the integration of refining and petrochemicals, Saudi Aramco announced on Monday.
The agreement strengthens Saudi Aramco’s position and growth in southeast Asia through crude supply and world-scale downstream operations.
One of the petrochemicals projects includes Petronas' Pengerang Integrated Complex (PIC) in the southern Malaysian state of Johor, according to Aramco's press release.
Under the terms of the venture’s share purchase agreement signed between Petronas Chemical Group (PCG) and Saudi Aramco’s Overseas Holding Cooperatif U.A. subsidiary, the parties will have equal ownership in PRPC Polymers Sdn Bhd (PRPC Polymers) within PIC.
"Through this venture, we will also achieve a high degree of integration between refining and petrochemicals, with petrochemicals production greater than 10 percent of crude intake. It is also in tandem with our downstream growth strategy where we are investing in a global refining and petrochemicals system of strategically located world-scale manufacturing complexes with participated refining capacity of several million barrels per day,” Said Al-Hadrami, the head of Saudi Aramco's international operations said.
"This venture leverages the historic partnership between Saudi Aramco and Petronas that was recently sealed during the visit of the Custodian of The Two Holy Mosques King Salman to Malaysia. Given PCG’s strength in the region’s petrochemicals sector, Saudi Aramco is proud to be entering into a deeper, mutually beneficial partnership in PIC,” he added.
"The partnership marks a strategic, mutually beneficial relationship that will provide PIC with high-impact strengths and synergies from both Saudi Aramco and PCG," the press release read.
(Anadolu Agency)
