• 4 minutes Energy Armageddon
  • 6 minutes "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 12 minutes "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 4 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 20 hours Is Europe heading for winter of discontent with extensive gas shortages?
  • 5 hours "False Flag Planted In Nord Stream Pipeline, GFANZ, Gore, Carney, Net Zero, U.S. Banks, Fake Meat, and more" - NEWS in 28 minutes
  • 6 days Wind droughts
  • 12 hours ""Green" Energy Is a Scam. It Isn't MEANT to Work." - By James Corbett of The Corbett Report
  • 12 hours "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 4 days Kazakhstan Is Defying Russia and Has the Support of China. China is Using Russia's Weakness to Expand Its Own Influence.
  • 2 days Xi Is Set To Be Re-Elected As China’s Leader
  • 8 days Oil Prices Fall After Fed Raises Rates
  • 9 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 3 days 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 13 days Beware the Left's 'Degrowth' Movement (i.e. why Covid-19 is Good)

Aramco Pulls Out Of Joint Venture Talks With Petronas

Saudi Aramco has pulled out of a planned joint venture with Malaysia’s state-owned oil company Petronas, concerning the construction and operation of a major refining and petrochemical complex in southern Malaysia, according to sources close to the deal.

The multi-billion-dollar Refinery and Petrochemical Integrated Development was planned to have a daily throughput rate of 300,000 barrels of crude, producing 7.7 million tons of petrochemicals annually. The complex would have also included a regasification terminal for LNG.

No reasons were given for the shelving, either by Aramco or by Petronas, with both companies telling the WSJ that they did not comment on speculation.

The Malaysian company last year sought to borrow US$7.2 billion to advance the project, estimated to be worth some US$20.1 billion. According to the Wall Street Journal, Aramco has concluded after a feasibility study that the project will not yield the desirable level of returns.

Both Aramco and Petronas have been hit by the oil price crash and it makes sense for the world’s largest oil company, by output, to be more cautious with future projects especially in light of its upcoming IPO in 2018. Yesterday, media reported that Aramco is seeking advisers on the listing, sending out requests for proposals to large and small investment banks. Aramco expects the IPO to bring in some US$100 billion for 5 percent of the company.

Petronas, for its part, has been looking for new revenue streams after having to axe 1,000 jobs and squeezing capex by US$11.3 billion (50 billion ringgit) over the period from 2016 to 2020.

The Malaysian company last month announced it had found a new location for its US$27-billion LNG project in Canada, the Pacific NorthWest LNG, in response to environmental opposition to its first choice of location. The final investment decision on this project should be made by the end of the first quarter.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment
  • Ali on January 25 2017 said:
    Why would ARAMCO ship oil and natural gas 7,000 miles to Malaysia for refining? Saudi Arabia and Qatar need refineries, jobs, and value added exports.

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News