Petronas and Saudi Aramco said on 25 May that they had signed an agreement for Aramco to transfer its stakes in Pengerang Refining Company and Pengerang Petrochemical Company, known together as PRefChem, giving the Malaysian state energy group full ownership of the complex in Johor.
Why Petroliam Nasional Berhad (PETRONAS) is buying PRefChem (Aramco's 50% in Pengerang Refining and Pengerang Petrochemical)
Petronas said full ownership would improve operational alignment and flexibility across its value chain, while Aramco said the sale supports the strategic optimisation of its downstream portfolio and gives it flexibility to pursue investments aligned with its downstream strategy.
Deal terms and financing
Financial terms were not disclosed; the companies said the deal was concluded on mutually agreed terms reflecting their evolving priorities. Existing crude supply arrangements between the two under current commercial agreements are unaffected.
Regulatory approvals and timing
The transfer is subject to customary closing conditions, after which PRefChem becomes a wholly owned and operated subsidiary of the Petronas group.
Market context
Petronas and Aramco formed the 50:50 partnership in 2017, when Aramco committed about $7bn. PRefChem sits within the Pengerang Integrated Complex and has a 300,000-barrel-a-day refinery and about 3.3m-3.4m tonnes a year of petrochemical capacity. The companies plan to explore further cooperation on crude supply, technology and product distribution.
