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 price of oil spiked on Thursday just minutes after Tehran seized a “foreign vessel” which was “smuggling” one million liters of fuel near Larak Island in the Strait of Hormuz off Iran’s coast.
Kuwait-based Equate Petrochemical, which operates Kuwaiti styrene producer TKSC, has restarted its 450,000 t/yr styrene monomer (SM) unit a week earlier than expected.
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Noori Petrochemical Plant, whose stocks were quoted in the Iranian stock market in its initial public offering (IPO), broke a new record as over 560,00 traders were involved in trading its shares on Saturday.
Iranian Oil Minister Bijan Namdar Zanganeh underlined that the US sanctions have failed to stop Iran's oil supplies to other countries.
Iranian Parliament Speaker Ali Larijani underlined the US failure to zero his country's oil exports, saying that Washington has been defeated by Iran's smart moves.