Saudi Aramco signed a share purchase agreement on Tuesday with PETRONAS for a stake in the Refinery & Petrochemical Integrated Development (RAPID) project.
The RAPID project is located in the southern Malaysian state of Johor.
Upon the completion of the transaction both partners will hold equal ownership in selected ventures and assets of the RAPID project within the Pengerang Integrated Complex (PIC).
Under the partnership, Saudi Aramco will meet most of the crude feedstock requirements for the refinery, with natural gas, power and other utilities supplied by PETRONAS.
The RAPID refinery has a capacity to refine 300,000 barrels of crude per day and produce a host of refined petroleum products, including gasoline and diesel that meets Euro 5 fuel specifications.
The project will also produce feedstock for its integrated petrochemical complex producing 3.5 million tons per annum of products.
The PIC development is almost 60 percent complete and is on track for refinery start-up in 2019.
“The PIC is one of the largest industrial developments in the region as well as PETRONAS’ largest downstream investment on a single site to date,” PETRONAS President & Group CEO Datuk Wan Zulkiflee Wan Ariffin said.
The RAPID development includes a refinery cracker and the downstream petrochemical complex.
The PIC, located on a 6,242-acre site, also includes the development of associated facilities including a co-generation plant, a LNG re-gasification terminal, a raw water supply project, a deep water terminal and centralized and shared utility facilities.
The RAPID project is part of the PIC development undertaken by PETRONAS and is positioned to be a regional downstream oil and gas industrial hub.
The PIC is part of Malaysia’s 22,000-acre Pengerang Integrated Petroleum Complex (PIPC) that is designed to boost the country’s downstream sector.
“This partnership will also bring together two organizations with strong reputation, wealth of operational experience and proven record in developing mega projects as well as having commercial networks in different markets globally,” Wan Zulkiflee said.