KUALA LUMPUR, Feb 28 — There is no risk to Malaysian interest in partnering with Saudi Aramco through the RM31 billion share purchase agreement (SPA) in the Refinery and Petrochemical Integrated Development (RAPID) project, said Petroliam Nasional Bhd (Petronas).

Its President/Group Chief Executive Officer (CEO), Datuk Wan Zulkiflee Wan Ariffin, said the SPA only involved Saudi Aramco acquiring 50 per cent stake in RAPID’s refinery and cracker projects which were a portion of Pengerang Intergated Complex.

"I dont see any risk in terms of Malaysia’s interest as we are both national oil companies and we have been developing communities in the area we operate.

It (partnership) is normal, but all these have to be done in commercial terms,” he said at a joint press conference after signing of the SPA here today.

Prime Minister Datuk Seri Najib Razak and Saudi Arabia’s King Salman Abdulaziz Al Saud witnessed the ceremony.

Also present were Minister in the Prime Minister Department Datuk Seri Rahman Dahlan, Saudi Arabia’s Energy, Industry and Mineral Resources Khalid Al-Falih, who is also Saudi Aramco Chairman and Saudi Aramco’s President/CEO, Amin H. Nasser.

Under the partnership, Saudi Aramco will supply up to 70 per cent of the crude feedstock requirements of the RAPID’s refinery, while natural gas, power and other utilities would be supplied by Petronas.   

On the new partner in the RAPID project, Wan Zulkiflee said, it was normal for a company in the oil and gas industry to have partnerships.

"If you look into our history in terms of partnership, it’s nothing new for Petronas, we have many partners,” he said.

On the partnership with Saudi Aramco, he said, the companies shared a lot of strategic fits in term of experiences, professionalism and culture.

He said since Saudi Aramco was the biggest crude exporter, the partnership would also gain Petronas a long-term crude supply security.

Meanwhile, Amin said, Saudi Aramco was proud to be in the partnership and described Malaysia as the market that the company had always wanted to invest. 

"Malaysia is a growth market for us and has strong gross domestic product growth,” he said.

Rahman said the SPA was a sign of foreign investor’s confidence in Malaysia and it was the second largest foreign investment announced to-date after the RM144 billion from China. — Bernama