Aramco exits PRefChem joint venture with Petronas

Saudi oil company Saudi Aramco is withdrawing from the PRefChem joint venture with Malaysia’s Petronas.

According to a company statement, Petronas will acquire Aramco’s 50% stakes in both PRefChem entities, Pengerang Refining Company and Pengerang Petrochemical Company. The agreement was signed at the end of May. No details were disclosed regarding the transaction value or other financial terms.

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PRefChem operates the RAPID (Refinery and Petrochemical Integrated Development) complex in Pengerang, located in the southern Malaysian state of Johor. The site includes a refinery with a crude oil processing capacity of 300,000 barrels per day, a steam cracker with annual production capacities totaling 3.4 million tonnes of ethylene, propylene, butadiene, benzene, and MTBE, as well as downstream facilities producing a combined 2.5 million tonnes per year of polyethylene (HDPE, LLDPE), polypropylene (PP), monoethylene glycol (MEG), and diethylene glycol (DEG).

According to Aramco, the divestment supports the optimization of its downstream portfolio and provides additional flexibility for strategic investments in this segment. At the same time, Aramco will continue supplying crude oil to the PRefChem complex.

For Petronas, full ownership of PRefChem is expected to improve operational alignment and flexibility across its value chain, helping to ensure a stable supply even under volatile market conditions.

More information: www.aramco.com, www.petronas.com, www.prefchem.com

Aramco, Saudi-Arabien