Saudi oil giant Aramco will buy an equity stake in Malaysian firm Petronas' major refining and petrochemical project, pumping in $7 billion in its biggest downstream investment outside the kingdom, the companies said on Tuesday.
The deal will boost Aramco's downstream business ahead of a planned initial public offering next year and also bolsters Malaysia's state-controlled Petroliam Nasional Bhd—known as Petronas—after it cut spending because of the slump in oil prices, Reuters reported. In a joint statement, the firms said Aramco will take a 50% stake in select ventures and assets in the refinery and petrochemical integrated development project developed by Petronas. Signing of the deal was witnessed by Malaysian Prime Minister Najib Razak and Saudi King Salman, currently on a state visit to Malaysia—the first in over a decade. "Malaysia offers tremendous growth opportunities and today's agreement further strengthens Saudi Aramco's position as the leading supplier of petroleum feedstock to Malaysia and Southeast Asia," Aramco CEO Amin Nasser said.
The federal government of Iraq has restarted exports of Kirkuk crude oil through the Kurdistan-Turkey pipeline Friday, paving the way for a rise in loadings from OPEC's second-largest producer.
Colombia must discover about 2bn bls of new crude reserves to remain self-sufficient, said Colombian President Ivan Duque, with unconventional resources providing the best opportunities.
US shale may be the darling of the oil industry now, but the boom is not going to last, according to the International Energy Agency.
The Organization of the Petroleum Exporting Countries hasn't been effective in stabilizing oil prices, which have been more dependent on US shale production than the actions of the intergovernmental group, said Malaysian Prime Minister Mahathir Mohammad.
Aliquefied natural gas cargo from the United States has arrived in China, the first such cargo since Beijing imposed a tariff on US imports, shipping data from Refinitiv Eikon showed on Monday.
OPEC will not respond to US pressure to lower oil prices but will seek to maintain a balanced market, UAE energy minister Suhail al-Mazrouei said Tuesday, after President Donald Trump warned the organization on Twitter not to cut crude oil production.