Petronas, Saudi Aramco to enter RM31b oil refinery deal

PUTRAJAYA: Saudi Arabian oil company Saudi Aramco is set to invest a total of US$7 billion (RM31.06 billion) in the Refinery and Petrochemical Integrated Development (Rapid) project, said Prime Minister Datuk Seri Najib Abdul Razak.
He said an agreement was reached between Aramco and Petroliam National Berhad (Petronas) on Monday morning in developing the project in Pengerang, Johor. Rapid is part of Petronas' Pengerang Integrated Complex.
Najib added that the investment's amount has probably made Aramco "the single largest investor" in Malaysia, stating that the agreement was a major milestone reached by both countries in conjunction with the official visit of Saudi Arabian ruler King Salman Abdulaziz Al-Saud here.
"The investment is a very significant amount. The (signing) ceremony will be held tomorrow (Tuesday) and more details will be announced soon.
"I just wanted to confirm that an agreement has been reached and King Salman was satisfied and happy that the agreement will be inked," he said in a press conference after witnessing a memoranda of understanding signing ceremony between Malaysia and Saudi Arabia at Seri Perdana.
Also present at the signing ceremony was King Salman, as well as cabinet ministers from both countries.
Najib said the negotiation team had worked intensively day in day out for three weeks to ensure that the agreement could be materialised.
"A lot of people were under stress to conclude such a big investment as many aspects need to be considered," he said.
He said the agrement was also a sign of Malaysia's ability in developing and maintaining good foreign relations with other countries.
Najib also hoped the signing would not be used as an issue by certain groups to accuse the government of selling Malaysia's sovereignty to a foreign country, as seen when China invested in Malaysia previously.
"We were accused of selling our sovereignty (to China). I wonder what they will say when Saudi Arabia invests in Malaysia. Are they going to say we have sold our sovereignty to Saudi Arabia?
"It is not a question of sovereignty, it is a question of investment. Investment will be good for us. it brings in foreign capital, it will strengthen the ringgit, it will mean more jobs and will also be a strong vote of confidence in our economy," Najib said.