By Gaurav Raghuvanshi
Saudi Arabian Oil Co. has signed a deal to buy a 50% equity stake in a polymers-producing unit of Malaysia's Petronas Chemicals Group Bhd. (5183.KU) for about $900 million.
The sale will allow the Malaysian company, PRPC Polymers Sdn. Bhd., to share the project and operational risks with Saudi Aramco, which will supply up to 70% of the crude oil the plant will use, Petronas Chemicals said in a statement to Bursa Malaysia on Monday.
The Malaysian company said the deal will allow it to leverage on Saudi Aramco's experiences in execution, implementation and operation of similar large scale and integrated petrochemical projects, as well as free up capital for other projects.
Earlier this year, Saudi Aramco said it will invest $7 billion for a 50% stake in a refinery and petrochemicals project in southern Malaysian state of Johor being built by Petroliam Nasional Bhd., Malaysia's state oil company.
PRPC's polymers project is a part of the refinery and cracker project in the fishing town of Pengerang bordering Singapore.
Write to Gaurav Raghuvanshi at [email protected]