Aramco Transfers PRefChem Stakes to Petronas, Ending Eight-Year Partnership

Saudi Aramco will transfer its equity stakes in the Pengerang Refining Company and Pengerang Petrochemical Company to Petroliam Nasional Berhad (Petronas), ending an eight-year downstream partnership and making PRefChem a wholly owned subsidiary of the Malaysian state energy company. The agreement covers assets within the Pengerang Integrated Complex in Johor, Malaysia, and remains subject to customary closing conditions.

Aramco initiated the divestment to optimize its downstream portfolio and align capital with its long-term strategy. The decision follows significant disruptions caused by the Iran war and the closure of the Strait of Hormuz since February, which slashed crude flows to Asia and forced Aramco to cut production. Full ownership allows Petronas to source crude from outside the Gulf, improving operational alignment and flexibility in managing supply and product flows to meet regional demand for gasoline, diesel, and jet fuel.

Financial terms of the transfer were not disclosed. Despite the ownership change, both companies stated they intend to continue exploring commercial cooperation in areas including crude oil supply, technology exchange, and product distribution.