Aramco transfers PRefChem ownership to PETRONAS
- PETRONAS acquires Aramco's equity in PRefChem (Pengerang Refining Company and Pengerang Petrochemical Company) at the Pengerang Integrated Complex, Johor.
- Transaction, subject to customary closing conditions, will make PRefChem a wholly owned PETRONAS subsidiary.
- Aramco will optimise its downstream portfolio post-transfer while both companies will explore coordinated crude supply, technology exchange and integrated product distribution.
Transfer details
Aramco has signed an agreement to transfer its equity stakes in Pengerang Refining Company Sdn. Bhd. and Pengerang Petrochemical Company Sdn. Bhd. (collectively PRefChem) at the Pengerang Integrated Complex in Johor to PETRONAS; subject to customary closing conditions, the transfer will make PRefChem a wholly owned PETRONAS subsidiary.
Strategic rationale
Full ownership gives PETRONAS greater operational alignment and flexibility across its value chain and access to its international supply network and integrated operating model to support reliability through varying market conditions; for Aramco, the transaction supports optimisation of its downstream portfolio and adds flexibility to pursue downstream-aligned investments.
Post-transfer cooperation
Following the transfer, the companies will explore commercial arrangements including coordinated crude supply, technology exchange and integrated product distribution, building on their multi-decade partnership.
Source: Aramco