Aramco Exits Malaysian Refining, Petrochemical Complex

Saudi Arabian Oil Co (Aramco) has agreed to sell its stake in a refining and petrochemical complex in the Malaysian state of Johor to the Southeast Asian country's state-owned Petroliam Nasional Bhd.

The transaction involves Pengerang Refining Company Sdn Bhd and Pengerang Petrochemical Co Sdn Bhd, collectively PRefChem. PRefChem operates a refinery with a crude oil processing capacity of 300,000 barrels per day, producing diesel, gasoline and jet fuel. The refinery also supplies the petrochemical site, which has a nameplate capacity of 3.4 million metric tons a year for benzene, butadiene, ethylene, MTBE and propylene production, the joint venture says on its website.

"Recent developments in global energy markets have underscored the importance of operational agility for energy infrastructure of strategic national significance", Petronas said in an online statement. "Full ownership of PRefChem strengthens Petronas' ability to support Malaysia’s long-term energy security and industry resilience. 

"This acquisition will enable Petronas to take full control and further enhance operational alignment and flexibility across PRefChem's value chain, while harnessing its international oil supply network and integrated operating model to support continued reliability and resilience across varying market conditions.

"Separately, crude supply arrangements between Aramco and PETRONAS under existing commercial agreements remain unaffected by this transaction".

A joint statement said, "Petronas and Aramco will actively explore commercial arrangements following the transfer, including coordinated crude oil supply, technology exchange, and integrated product distribution, building on their multi-decade partnership".

"For Aramco, the transaction supports the strategic optimization of its downstream portfolio, providing the company with additional flexibility to pursue investments aligned with its downstream strategy", the companies said.

Aramco Downstream Expansion

As part of its downstream expansion, Aramco is planning to upgrade its Samref refinery in Yanbu, Saudi Arabia. Plans include expanding the site, which Aramco equally owns with Exxon Mobil Corp, into an integrated petrochemical complex.

The facility currently has a declared oil processing capacity and storage capacity of about 400,000 bpd and 13.2 million barrels respectively. It produces mostly gasoline, as well as diesel fuel, heating oil, jet fuel, liquefied petroleum gas and others, the joint venture says on its website.

"The companies will explore capital investments to upgrade and diversify production, including high-quality distillates that result in lower emissions and high-performance chemicals, as well as opportunities to improve the refinery’s energy efficiency and reduce emissions from operations through an integrated emissions-reduction strategy", Aramco said in a press release December 8, 2025.

Also last year Aramco completed the acquisition of an additional 22.5 percent stake in Rabigh Refining and Petrochemical Co (Petro Rabigh) from Sumitomo Chemical Co Ltd for $702 million, as announced by Aramco October 9, 2025. The transaction has increased the oil giant's ownership in Petro Rabigh to 60 percent. Tokyo-based Sumitomo retains 15 percent.

"We look forward to exploring closer integration with Petro Rabigh, with the aim of unlocking new opportunities and complementing Petro Rabigh's broader transformation objectives, which include upgrading its product mix, enhancing asset reliability and optimizing operations", Aramco senior vice president for fuels Hussain A. Al Qahtani said then.

In October 2025 Aramco completed its acquisition of a 25 percent stake in Unioil Petroleum Philippines Ltd, taking over more than 175 retail stations and four storage terminals in the Southeast Asian nation. "Through this acquisition, Aramco continues to progress its strategic expansion of its global retail network in high-value markets", Aramco said in its interim operational and financial report November 4.

In China, Aramco in September 2025 formed Fujian Sinopec Aramco Refining and Petrochemical Co Ltd with China Petroleum & Chemical Corp and Fujian Petrochemical Co Ltd. The JV will build an integrated refining and petrochemical complex in the province. Expected to start production by 2030, the site will have an oil refining capacity of 16 million tons per annum (MMtpa) or 320,000 bpd, an ethylene production capacity of 1.5 MMtpa, a paraxylene and downstream derivatives capacity of 2 MMtpa and a 300,000-ton crude terminal.

"The project represents the third major manufacturing collaboration between Aramco and Sinopec in China, following the successful launch of the Fujian Refining & Petrochemical Co project in 2007 and Sinopec SABIC Tianjing Petrochemical Company in 2009", Aramco said September 9, 2025. "It is also the fifth joint venture between Aramco and Sinopec, extending their cooperation in refining and chemicals both in China and internationally".

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