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.