Company - - Feb 28,2017
According to Malaysian Prime Minister Najib Razak, oil major Saudi Aramco would be investing US$7 billion in Malaysia focused around an oil processing hub.
Malaysian Prime Minister Najib Razak revealed that the decision was finalized before Monday noon right after the discussions held among senior executives from Saudi Aramco and Malaysian energy company Petroliam Nasional (Petronas).
Petroliam Nasional (Petronas) is also the sponsor of the Refinery and Petrochemical Integrated Development (RAPID) project worth $27 billion.
The present deal focuses on an investment of $7 billion into an oil refinery and petrochemical project which is planned in the southern state of Johor.
Najib said at a news conference after hosting a feast for Saudi Arabia's King Salman that, "this is a significant investment” and more details will be announced soon.
It is expected that the executives from Petronas and Saudi Aramco would work out to sign the agreement on Tuesday.
It is believed that the Aramco funding will help in the success of the RAPID project. Moreover, it would strengthen the links between Saudi and Malaysian leaders, says oil and gas analyst, Subramanya Bettadapura.
The RAPID project is specifically located at Pengerang in Johor, and is expected to start its operations in the first quarter of 2019. This project will contain a 300,000 barrel-per-day oil refinery as well as a petrochemical complex managing a production capacity of 7.7 million metric tonnes.
On Tuesday, apart from the Petronas-Saudi Aramco deal, Saudi Arabia and Malaysia signed four more agreements in regard to human resources, bilateral trade, scientific and educational cooperation along with a news-sharing agreement concerning the state news wires in both the countries.
In the coming days, King Salman might also visit Brunei, Indonesia, China, Japan, Jordan and the Maldives to meet with the respective leaders “to discuss bilateral relations and regional and international issues of common concern," according to Saudi Arabia's state media SPA.