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)