Aramco to Transfer Malaysian PRefChem Stakes to Petronas
- May 25
- 2 min read
PARIS, May 25 (Saudi Arabia Breaking News) — Saudi Aramco will transfer its equity stakes in the PRefChem refining and petrochemical joint ventures in Malaysia to partner Petronas, ending an eight-year downstream partnership in Southeast Asia.
The transaction, subject to closing conditions, will make PRefChem a wholly owned subsidiary of Malaysia’s state energy company. Financial terms were not disclosed.
“The transaction was concluded on mutually agreed terms, reflecting the evolving strategic priorities of both parties,” Aramco and Petronas said in a joint statement.
PRefChem comprises two joint ventures, Pengerang Refining Company and Pengerang Petrochemical Company, which operate an integrated refining and petrochemical complex within the Pengerang Integrated Complex in Johor, southern Malaysia.
The refinery has a capacity of about 300,000 barrels per day and produces jet fuel, gasoline and diesel. It also supplies feedstock to the petrochemical complex, which has a nameplate capacity of about 3.4 million tonnes per year.
The deal comes as the Iran war reshapes energy partnerships across Asia. The effective closure of the Strait of Hormuz since late February has reduced crude flows to the region, forcing refiners to cut runs and contributing to shortages of jet fuel, gasoline and diesel.
Full ownership will give Petronas greater flexibility to source crude beyond the Gulf and direct output toward regional fuel demand. Aramco has been forced to cut production because of the conflict, with Saudi output falling by roughly a third in April from pre-war levels, according to OPEC secondary sources.
Aramco had been supplying 50% to 70% of PRefChem’s crude feedstock.
Aramco agreed in 2017 to invest $7 billion for equal participation in the project during a state visit to Malaysia by Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud. The two joint ventures were formally established in March 2018.
Aramco and Petronas will continue to explore cooperation in areas including crude supply, technology exchange and product distribution.
