SEATTLE (Oil Monster): Saudi Arabian oil giant Aramco has agreed to sell its stake in the Pengerang Refining and Petrochemical Complex (PRefChem) in Johor, Malaysia, to state-owned Petroliam Nasional Bhd. (Petronas). The move aligns with Aramco’s previously declared optimization strategy targeting its broader downstream portfolio.
The transaction covers Pengerang Refining Company Sdn Bhd and Pengerang Petrochemical Co Sdn Bhd, collectively known as PRefChem. The integrated complex operates a refinery with a crude processing capacity of 300,000 barrels per day and produces diesel, gasoline, and jet fuel. The complex also houses a petrochemical facility with a production capacity of 3.4 million metric tons per year.
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Commenting on the deal, Petronas noted that full ownership will strengthen Malaysia’s long-term energy security and improve operational flexibility. The existing crude supply agreements with Aramco will remain unaffected, it said.
It must be noted that Aramco has been expanding globally through refining and petrochemical investments, not only in Saudi Arabia, but also in other countries such as China, and the Philippines. The recent refinery upgrades at the Samref complex in Yanbu and new joint ventures with Sinopec in China are part of its expansion plans.
