KUALA LUMPUR (May 25): Petroliam Nasional Bhd (PETRONAS) is taking full control of the Pengerang Integrated Complex’s refining and petrochemical operations after agreeing to acquire Saudi Arabian Oil Company’s (Aramco) stakes in two key joint-venture companies in Johor.

The acquisition marks the end of the 50:50 partnership established between PETRONAS and Aramco in 2017 as part of the development of the Refinery and Petrochemical Integrated Development (Rapid) project within the Pengerang Integrated Complex.

The transaction involves Aramco’s equity interests in Pengerang Refining Company Sdn Bhd and Pengerang Petrochemical Company Sdn Bhd, collectively known as PRefChem, according to a joint statement issued by PETRONAS and Aramco on Monday.

The financial terms were not disclosed. Aramco invested about US$7 billion (approximately RM31 billion at the time) for a 50% stake in the two companies under the original agreement signed in 2017.

Upon completion, which is subject to customary closing conditions, PRefChem will become a wholly owned and operated subsidiary of the PETRONAS group.

PETRONAS said existing crude supply arrangements between both parties under current commercial agreements would remain unaffected by the transaction.

The national oil company also said full ownership of PRefChem would strengthen its ability to support Malaysia’s long-term energy security and industrial resilience, amid increasingly volatile global energy markets.

The acquisition would also improve operational alignment and flexibility across PRefChem’s integrated value chain, while allowing it to leverage its international supply network and integrated operating model to maintain reliability across varying market conditions.

For Aramco, the divestment forms part of efforts to optimise its downstream portfolio and create greater flexibility to pursue investments aligned with its long-term downstream strategy.

Both companies said the transaction was concluded on mutually agreed terms reflecting their evolving strategic priorities. They added that PETRONAS and Aramco would continue exploring future collaborations, including coordinated crude oil supply, technology exchange and integrated product distribution.

PRefChem has a refinery capacity of 300,000 barrels per day and petrochemical production capacity of about 3.3 million to 3.4 million tonnes per annum. Its downstream petrochemical facilities produce products such as polyethylene, polypropylene and glycol products, while the refinery manufactures Euro 5-compliant gasoline, diesel and jet fuel.

Aramco has been supplying up to 70% of the refinery’s crude feedstock requirements, while PETRONAS provided gas, power and utilities support. "Crude supply arrangements between Aramco and PETRONAS under existing commercial agreements remain unaffected by this transaction," PETRONAS said.