Petronas, Aramco in $900-mln polymers deal

Saudi Aramco’s overseas arm has purchased 50% of a polymers unit at Petronas’ Pengerang Integrated Complex (PIC) in southern Malaysia, the Saudi oil giant said on Monday.

Reuters added in a report that the price tag for the deal, which was signed between Petronas Chemicals Group and Aramco Overseas Holdings, was USD 900 million.

The two companies set up a JV to co-operate at PIC, the press release added.

“This agreement strengthens Saudi Aramco’s position and growth in Southeast Asia through crude supply and world-scale downstream operations,” said Said Al Hadrami, Aramco’s vice-president for international operations. “Through this venture, we will also achieve a high degree of integration between refining and petrochemicals, with petrochemicals production greater than 10% of crude intake.”

The news came as Petronas installed two ethylene oxide reactors at PIC that are among the largest in the world, news agency Bernama reported on Monday. 

The complex is about 75% complete and the refinery is expected to come on stream in 2019, the Aramco statement added.