Saudi Aramco Will Invest $7 billion In RAPID Oil Refinery
Saudi Aramco 7 Billion RAPID Oil Refinery Investment
Saudi Aramco are continuing the positive growth, the company who seem to be one of the main movers in the industry since the crash have proved their positive intentions further as Saudi Aramco Will Invest $7 billion In RAPID Oil Refinery.
The Saudis have been visiting Malaysia in the first visit in an unusual Month’s trip of Asia as the company are looking to develop stronger ties and secure more financial investments to the oil-rich gulf nation.
Malaysia’s Prime Minister Najib Razak revealed on Monday that Saudi Arabia’s state oil firm Saudi Aramco is willing invest $7 billion into an oil refinery and petrochemical project in Malaysia’s southerly state of Johor.
Maylasia’s Prime Minister, Najib Razak said “This investment confirmation would help bring the RAPID project to the commissioning stage,”.
He went on to say that, “It’s the positive goodwill of the Saudi king himself to commit and to preserve excellent relations with Malaysia, enhance respective ties.”
The Petronas & Saudi Aramco deal is to be confirmed this Month, Malaysia and Saudi Arabia have signed four additional agreements dealing with bilateral trade, human resources, scientific and educational cooperation and a news sharing agreement between the state news wires of both countries.
Mr Razak announcement signifies a significant turnaround in RAPID’s prospects after market sources familiar with the issue said in the beginning of the year that Aramco intended to stand down from its involvement in a collaboration with Petronas in the project.
During that time, Petronas stated it would continue despite the strong possibility that Aramco would be backing out. Najib Razak did not really give any particulars on why the sudden turnaround from Aramco.
The Aramco financing will certainly assist move RAPID to fulfillment, and this is certainly the wish of the Saudi and Malaysian leaders to sustain related links amongst the regions.
Building long term partnership links with Asia most likely assisted seal a deal, stated Subramanya Bettadapura, an oil and gas expert with experts Frost & Sullivan whom are based in Kuala Lumpur.
Mr Razak went on to say that ” I just want to confirm that the agreement has been reached and King Salman is satisfied that the deal will be signed tomorrow,”.
The RAPID project, situated at Pengerang in Johor, is anticipated to commence operations in the 1st quarter of 2019.
RAPID will consist of a 300,000 barrels per-day oil refinery and a petrochemical facility with a production capacity of around 7.7 million metric tonnes. The facility will rest along with an existing oil storage point at Pengerang.
Najib Razak stated the decision was actually made just before midday on Monday soon after conversations with leading executives from Saudi Aramco and Malaysia’s state-owned energy company Petroliam Nasional (Petronas), the benefactor of the $27 billion Refinery and Petrochemical Integrated Development (RAPID) project.
An industry source familiar with the issue said that Aramco will purchase a stake in RAPID’s refinery, cracker and petrochemical operations. Aramco will likely also provide approximately 50 percent of the crude which will be processed at RAPID, with a further option to boost the supply, the source said.
King Salman is also anticipated to explore Indonesia, Brunei, Japan, the Maldives and China “to meet the forerunners of those nations to talk about bilateral relations and regional and global issues of prevalent concern,” a royal court announcement carried on Saudi Arabia’s state media SPA reported.
” This is a significant investment and more details will be announced tomorrow,” Najib Razak stated at a short press conference after hosting a state lunch for Saudi Arabia’s King Salman and his entourage.
Petronas and Saudi Aramco execs are planned to put pen to paper on the arrangement on Tuesday. Previously, Petronas pursued propositions for a $7.2 billion loan for the project, with separate assurances from the company and Aramco, Thomson Reuters IFR reported in June.