According to Malaysian Prime Minister Najib Razak (photo), oil major Saudi Aramco will invest USD 7 billion in a mammoth oil processing hub in Malaysia, making it the single largest investor in the Southeast Asian country.
The announcement came on the second day of a visit by Saudi King Salman, who is on a multi-nation tour to boost economic ties with Asia.
“This is a significant investment,” Najib told a news conference after meeting with the king. He said Aramco’s investment is a “strong vote of confidence” in Malaysia’s economy and that bilateral relations are at an “all-time high.”
The Refinery and Petrochemical Integrated Development hub is being developed at a total cost of USD 27 billion in Malaysia’s southern Johor state bordering Singapore and is due to start operations in 2019. It includes a refinery with the capacity to churn out 300,000 barrels of oil a day and a petrochemical complex with a production capacity of 7.7 million metric tons.
Saudi Arabia is leaning toward listing its giant, state-run oil company Saudi Aramco in New York. Officials expect the deal to be valued at about USD 2 trillion. If that were the case, it would make it the world’s most valuable publicly traded company. The world’s largest oil company is also considering listing its stock in either London or Toronto.