Saudi Aramco is offloading its 50% stake in a large refinery and petrochemicals project in Malaysia, transferring ownership to the country’s national oil company Petronas. The financial details have not been disclosed, but are likely to be significant — when the PRefChem joint venture was announced in 2017, Aramco pledged to invest some $7 billion.
The JV involves a 300,000 barrels-a-day refinery in Pengerang, which produces jet fuel and other products, and an adjacent petrochemicals plant. In a statement, Aramco said the decision to exit the venture was based on the “evolving strategic priorities of both parties.”
While the impact of the Iran war may have been a factor, the Saudi oil giant had already been eyeing potential asset sales. This time last year, Reuters reported that it was looking for ways to free up funds and had asked investment banks to pitch ideas for asset disposals. The company has also arranged multibillion-dollar leasing deals for its pipeline networks recently.