Aramco & PETRONAS collaborate to form two JVs for the RAPID project
Category: #world  By Saipriya Iyer  Date: 2018-03-29
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Aramco & PETRONAS collaborate to form two JVs for the RAPID project

Saudi Aramco, a Saudi Arabian national petroleum & natural gas firm, has signed an agreement with PETRONAS, an oil & gas firm based in Malaysia, to invest in a refinery project off Malaysia. In the first quarter of 2017, Aramco decided to purchase a stake worth USD 7 billion in PETRONAS’s RAPID Project. However, the decision had been postponed back then due to some technical glitches.

For the uninitiated, Refinery and Petrochemicals Integrated Development (RAPID) is a USD 27 billion venture located between the Malacca Strait & South China Sea. It will supply oil & gas to South Korea, China, and Japan.

The two firms have issued a joint statement that they signed the pact this week for jointly working on two ventures for RAPID project. However, they have presently declined to reveal the value of Aramco’s investment in the RAPID project. As per the terms & conditions of the deal, Aramco is expected to supply 50% of the refinery’s crude oil to its customers that may plausibly extend to 70%. The development includes a refinery, which is likely to produce 300,000 barrels of oil per day, and a petrochemical unit possessing a production capacity of 7.7 million metric tons per year in terms of volume.

The refinery will commence its business operations during the first quarter of next year and will be followed by the petrochemical unit after six to twelve months. The refinery is likely to produce gasoline & diesel and will provide a feedstock for Pengerang Integrated Complex in Malaysia. Abdulaziz Judaimi, the Vice President of Saudi Aramco, has announced that its partnership with PETRONAS will help Aramco to acquire a higher level of integration between refining & petrochemicals, with the production of petrochemicals increasing by over 20% of the crude oil consumption. He further stated that its association with PETRONAS will help in promoting potential future business relationships between the two firms as well.



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Saipriya Iyer

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Saipriya Iyer

Saipriya Iyer develops content for Market Size Forecasters, Algosonline, and myriad other platforms. A computer engineer by profession, she ventured into the field of writing for the love of playing with words. Having had a previous experience of 3 years under her bel...

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