Saudi Arabia’s state oil giant Aramco has announced the transfer of its equity stakes in the Pengerang Refining Company and Pengerang Petrochemical Company (PRefChem) in Malaysia to Malaysia’s energy giant Petronas.
The company confirmed the deal in a statement on Monday, ending an eight-year downstream partnership in Southeast Asia.
The deal, which is subject to closing conditions, will make PRefChem a wholly owned subsidiary of the Malaysian state energy company.
The statement did not disclose the financial terms of the transaction.
The deal underscores how the Iran war is reshaping energy partnerships across Asia.
The effective closure of the Strait of Hormuz since late February has slashed crude flows to the region, forcing refiners to cut runs and triggering shortages of jet fuel, gasoline, and diesel — products produced by PRefChem.
Full ownership of PRefChem will enable PETRONAS to further enhance operational alignment and flexibility across its value chain, while harnessing its international supply network and integrated operating model to support continued reliability under varying market conditions.
For Aramco, the transaction supports the strategic optimization of its downstream portfolio, providing the company with additional flexibility to pursue investments aligned with its downstream strategy.
“The transaction was concluded on mutually agreed terms, reflecting the evolving strategic priorities of both parties,” a joint statement issued by both companies said.
PRefChem comprises two joint ventures — Pengerang Refining Company and Pengerang Petrochemical Company — which operate an integrated refinery and petrochemical complex within the Pengerang Integrated Complex in the southern Malaysian state of Johor.
The refinery has a capacity of about 300,000 barrels per day and produces fuels including jet fuel, gasoline, and diesel, while supplying feedstock to the petrochemical complex, which has a nameplate capacity of about 3.4 million tonnes per year.
Aramco agreed in 2017 to invest $7 billion for equal participation in the project, signing a share purchase agreement during a state visit to Malaysia by King Salman. At the time, it was one of the company’s largest downstream investments abroad. The two joint ventures were formally established in March 2018.
The companies said they would continue exploring cooperation in areas including crude supply, technology exchange, and product distribution.
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