Malaysia’s Prime Minister Najib Razak announced on Monday that Saudi Arabia’s state oil company Saudi Aramco will invest $7 billion into an oil refinery and petrochemical project in Malaysia’s southern state of Johor.
Najib said the decision was made before noon on Monday after discussions between top executives from Saudi Aramco and Malaysia’s state-owned energy company Petroliam Nasional Bhd (Petronas), the sponsor of the $27 billion Refinery and Petrochemical Integrated Development (RAPID) project.
Najib’s statement marks a dramatic reversal in RAPID’s fortunes after industry sources familiar with the matter said in January that Aramco planned to drop its participation in a partnership with Petronas in the project. At the time, Petronas said it would move ahead in spite of Aramco dropping out. Najib did not give any details on the change of heart.
An industry source familiar with the matter says Aramco will buy a stake in RAPID’s refinery, cracker and petrochemical operations. Aramco will also supply at least 50 percent of the crude that will be processed at RAPID, with an option to increase the supply, the source said.
Résumé en français
Saudi Aramco va investir 7 milliards de dollars dans le projet malaisien Rapid porté par la société nationale Petronas.
Cet investissement prendra la forme d’une participation dans le projet Rapid (Refinery and Petrochemical Integrated Development) pour en assurer la continuité de développement et la bonne fin. Dans le cadre de l’accord, Saudi Aramco fournira plus de 50% du pétrole brut qui sera traité dans la raffinerie.
Source de l’information
Article: Saudi Aramco to invest $7 bln in Malaysia’s Petronas.