‘TALKS WITH SAUDI ARAMCO ON US$7b PENGERANG DEAL CONCLUDED’
Success shows international investors’ confidence in Malaysia, says Rahman
NEGOTIATIONS with Saudi Aramco for its US$7 billion (RM27.4 billion) investment in Petroliam Nasional Bhd’s (Petronas) project in Pengerang have been concluded, said Minister in Prime Minister’s Department Datuk Seri Abdul Rahman Dahlan.
He said the aim to net the Aramco investment in the first quarter of this year had been met.
“This demonstrates international investors’ confidence in Malaysia as their preferred investment destination.
“This partnership is historic and marks the beginning of a strategic, mutually-beneficial relationship between the national oil companies and the two nations,” he said at the Offshore Technology Conference 2018, here, yesterday.
Aramco is the world’s biggest oil company and the investment in Petronas’ Refinery and Petrochemical Integrated Development project (Rapid) is its largest in greenfield refining and petrochemical manufacturing facility outside of Saudi Arabia.
Rapid’s refinery operations are set to begin next year, with petrochemical plants to follow six to 12 months later.
It was previously reported that Petronas and Aramco were facing technical issues in finalising the Saudi investment.
The Pengerang Integrated Complex (PIC) project, of which Rapid is located in, is designed to produce premium petrochemicals to meet domestic demand and future legislative requirements on the implementation of Euro 5 diesel.
PIC supports the government’s Economic Transformation Programme and will position Malaysia to capitalise on the growing need for energy and commodity petrochemical products in Asia for the next 20 years.