BANGKOK – Oil company Saudi Aramco will invest $7 billion in a refinery and petrochemical development project in Malaysia after closing a deal with Malaysia’s Petronas, local media reported on Tuesday.
The agreement reached by the two companies was announced on Monday by Malaysian Prime Minister Najib Razak following his meeting with Saudi King Salman Abdulaziz Al-Saud, who is on a four-day visit to the country.
“The discussions and negotiations have concluded and been finalized... Their (Saudi Aramco) investment probably makes them the single largest investor (in Malaysia),” Najib said at a press conference, according to the New Straits Times.
The two state-owned oil companies will sign a memorandum that, according to local media, will create a joint venture in the first quarter of this year for a refinery complex in Johor, southern Malaysia, which will start operations in 2019.
The $21 billion Rapid complex will have the capacity to produce 7.7 million tons per year of various grades of chemical products.
Saudi Aramco, the world’s largest oil producer, is estimated to have crude reserves equivalent to 265 billion barrels, accounting for more than 15 percent of the world’s deposits.