CNPC in talks to buy stake in Malaysian refinery - report

15 July 2009 08:24  [Source: ICIS news]

(inserts fifth paragraph)

SHANGHAI (ICIS news)--Major oil and gas producer China National Petroleum Corp (CNPC) is in talks to acquire a stake in the $10bn (€7.2bn) refinery that would be built in Kedah, Malaysia, the South China Morning Post reported on Wednesday citing unnamed sources.

The refinery, which will have daily processing capacity of 350,000 barrels of crude oil, will be developed by Malaysian privately owned resource company Merapoh, it said.

Construction of the refinery in northwestern Malaysia will kick off later this year and should be completed in 2013, the Hong Kong-based newspaper said.

CNPC is also expected to seal today a multi-billion dollar agreement with Merapoh to procure fuel supply from this Kedah refinery over 20 years, the South China Morning Post said.

ICIS news could not confirm the report with CNPC and Merapoh.

In late 2007, CNPC had signed a memorandum of understanding to purchase all the refinery’s products including petrol, diesel and kerosene. At the time, Merapoh estimated the deal would be worth $6bn a year, the newspaper said.

Last week, CNPC’s listed unit PetroChina has secured government approval to acquire 49% of the Osaka refinery of Japanese producer Nippon Oil.

($1=€0.72)

To discuss issues facing the chemical industry go to ICIS connect

By: Judith Wang
+65 6780 4359

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly