Petronas acquires Phillips 66 stake in MRC

Malaysia’s national oil company Petroliam Nasional Bhd (Petronas) has announced that it is acquiring the remaining stake in the Malaysian Refining Company Sdn Bhd (MRC) for a cash consideration of $635 million.

Petronas said it reached an agreement with Philips 66 Asia Ltd, a subsidiary of New York Stock Exchange-listed Philips 66 to acquire its 47% stake in MRC, consequently wholly owning the refinery operator.

Wan Zulkiflee Wan Ariffin, COO and executive president and chief executive, Downstream of Petronas, said the acquisition of the remaining stake enables the energy firm to realise greater synergy between the refineries of both companies in Malacca, Malaysia.

“It will also strengthen our presence in the refining and trading businesses,” he said in a statement, adding that Petronas has had an excellent working relationship with Phillips 66 and that is expected to continue.

Phillips 66 is an energy manufacturing and logistics company with high-performing midstream, chemicals, refining, and marketing and specialties businesses. It is headquartered in Houston, US.

“Phillips 66 is pleased with the agreement to sell its share of Malaysian Refining Company to Petronas,” said Larry Ziemba, executive vice president of Refining for Phillips 66.

“This divestiture allows us to redeploy resources to more strategic areas of our business,” he said, noting that Petronas has been a long-time partner for Phillips 66.

Under the agreement, Petronas will pay the $635 million in cash with adjustment at completion. Both parties anticipate the transaction to be completed on December 31, 2014.

MRC, which processes crude oil, was commissioned in 1998 and has a refining capacity of 170,000 barrels per day. The refinery is located in Melaka, Malaysia.

Petronas is a fully integrated oil and gas corporation with entire ownership and control of the petroleum resources in Malaysia.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.