Malaysia: Petronas says RAPID project on track for 2019 start-up

Malaysia: Petronas says RAPID project on track for 2019 start-up

Malaysia's state oil firm Petroliam Nasional Berhad said yesterday its new
US$27 billion (RM119.5 billion) refining and petrochemical complex project
in the South-east Asian country is on track for start-up in 2019.

Sources familiar with the matter told Reuters on Wednesday that Saudi Aramco
had shelved its plans for a partnership with the company, known as Petronas,
on the Refinery and Petrochemical Integrated Development (RAPID) project,
raising questions about its future.

RAPID, located within the Pengerang Integrated Complex in the southern
Malaysian state of Johor, is designed to have a 300,000-barrel-per-day oil
refinery and a petrochemical complex with a production capacity of 7.7
million metric tonnes.

Petronas said in a statement late yesterday the development had reached the
54 per cent progress mark to date and was expected to generate positive
returns for the company.

"Petronas would like clarify that its Pengerang Integrated Complex project
will continue to be the focus of its downstream growth agenda in the coming
years," the company said in a statement emailed to Reuters.

"Despite the current slowdown in the world economy and depressed oil prices,
the... investment remains a priority for Petronas."

The statement made no reference to Aramco, Saudi Arabia's state-run oil and
gas giant.

Aramco's move to suspend plans for the Malaysian venture comes at a time
when Petronas is struggling with the slump in oil prices.

In early 2016 Petronas said it would cut spending by up to RM50 billion over
the next four years. It has also slashed the dividend it pays to the
Malaysian government.

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

Link to Original Article:
http://www.themalaymailonline.com/malaysia/article/petronas-says-rapid-proje
ct-on-track-for-2019-start-up

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com