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