Petronas Chem­i­cals sells 50% stake in PRPC Poly­mers to Saudi Aramco

Chemical Industry Digest - - News & Views -

Petronas

Chem­i­cals Bhd has dis­posed of a 50% stake in its unit PRPC Poly­mers Sdn Bhd to Saudi Ara­bian Oil Com­pany (Saudi Aramco) for US$ 900mil. PRPC Poly­mers’ prin­ci­pal ac­tiv­i­ties are to de­velop, con­struct, com­mis­sion and op­er­ate poly­mers and gly­col plants for the pro­duc­tion and sale of prod­ucts. PRPC Poly­mers has not started op­er­a­tions since the date of in­cor­po­ra­tion.

Petronas Chem­i­cals will share the project and op­er­a­tion risk with Saudi Aramco upon di­vest­ing 50% of the eq­uity in­ter­est and 50% of the share­holder loans in PRPC Poly­mers to AOHC. Saudi Aramco will sup­ply up to 70% of crude sup­ply to PRPC RC, which even­tu­ally will lead to the sus­tain­abil­ity of feed­stock sup­ply from PRPC RC to PRPC Poly­mers.

Petronas Chem­i­cals will be able to lever­age on Saudi Aramco’s ex­pe­ri­ences in ex­e­cu­tion, im­ple­men­ta­tion and op­er­a­tion of sim­i­lar large scale and in­te­grated petro­chem­i­cal projects, e.g., Sadara Chem­i­cal Com­pany. The di­vest­ment will also pro­vide Petronas Chem­i­cals with the po­ten­tial op­por­tu­nity to pur­sue fu­ture strate­gic col­lab­o­ra­tions with Saudi Aramco.

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