Petronas takes full ownership of Pengerang; Aramco exits jv

Malaysian oil/gas firm Petroliam Nasional Bhd (Petronas) recently announced that its subsidiary Petronas Refinery and Petrochemical Corporation Sdn Bhd (PRPC) has signed an agreement to acquire the equity stake held by Saudi Arabia’s Aramco in Pengerang Refining Company Sdn Bhd and Pengerang Petrochemical Company Sdn Bhd (collectively referred to as PRefChem), located within the Pengerang Integrated Complex, Pengerang, Johor.

The transaction, which remains subject to customary closing conditions, will see PRefChem become a wholly-owned subsidiary of the Petronas group.

The move marks a significant shift in the structure of one of Malaysia’s largest integrated refining and petrochemical projects, as both companies recalibrate their downstream strategies amid evolving market conditions.

Petronas said full ownership would allow the national oil company to strengthen operational alignment and improve flexibility across its value chain, while leveraging its international supply network and integrated operating model to maintain reliability amid market volatility.

For Aramco, the divestment forms part of efforts to optimise its downstream portfolio and create greater flexibility for investments aligned with its broader strategy.

“The transaction was concluded on mutually agreed terms, reflecting the evolving strategic priorities of both parties,” the companies said in a joint statement today.

Despite the ownership change, Petronas and Aramco said they would continue exploring commercial collaborations.

This included coordinated crude oil supply, technology exchange and integrated product distribution, building on what they described as a “multi-decade partnership”.

PRefChem is one of the largest integrated refining and petrochemical developments in Southeast Asia and forms a key part of the Pengerang Integrated Complex in Johor.

The complex includes a refinery with a capacity of about 300,000 barrels/day, a petrochemical cracker and multiple downstream chemical facilities serving regional and international markets.

Aramco entered the project in 2017 through the acquisition of a 50% stake in selected entities under the Refinery and Petrochemicals Integrated Development project, marking one of Saudi Arabia’s largest downstream investments in the region at the time.