PRefChem, strategic partnership between Saudi Aramco and Petronas

Speech|PENGERANG, Malaysia |May 15, 2018

Good morning ladies and gentlemen.

Let me first thank Tan Sri Wan Zulkiflee for those insightful remarks, his warm and generous hospitality, and everyone involved in organizing today’s event here in Pengerang.

Tan Sri, it is always a pleasure to be back in Malaysia.

My team and I are especially honored to be with all of you as we enter the Holy Month of Ramadan.

The relationship between the people of Malaysia and Saudi Arabia dates back centuries, and is a source of great pride for us.

And this ceremony to launch PRefChem shows how the strategic partnership between Saudi Aramco and Petronas is only getting deeper.

We have reached a key milestone in our journey together through the share purchase agreement, registration of the names of the joint ventures, and by unveiling the new logo.

I applaud the hard work, professionalism, and collaborative spirit shown by our teams throughout the journey.

I also want to commend all those involved in the mechanical completion of some units that we will witness today as well.

By reaching these new milestones, let me briefly explain why these two joint ventures in refining and petrochemicals that make up PRefChem are important.

First, the ventures will help to meet the rapidly rising demand for refined products and chemicals in the ASEAN region and beyond.

Second, Malaysia is among the most strategically important locations in that region.

The complexes being built here are designed to leverage that advantage as well as advantages in economies of scale and integration.

And as someone who knows a giga project when he sees one, this clearly qualifies – the scale is truly breathtaking!

Third, and most important of all, I have no doubt that the complexes will benefit the people of Johor once complete – providing employment, and contributing to the local economy in many ways, including the procurement of goods and services.

Our joint ventures with Petronas are also a perfect fit with Saudi Aramco’s downstream strategy.

We are building an integrated downstream business, and intend to grow our global refining footprint from roughly 5 million barrels per day now to between 8 and 10 barrels per day by 2030.

We are also placing much greater emphasis on turning crude oil into chemicals, including the development and advancement of cutting-edge materials; creating a world-class integrated base lubes business; and feeding all of them through our large and highly reliable crude oil supplies.

Our efforts here in South-East Asia (and indeed the whole Asia-Pacific region) are central to achieving those downstream expansion goals.

But as Tan Sri and I know well, none of our strategies would bear fruit without our partners.

We have long recognized that local companies bring an intimate knowledge of the market that we simply could not replicate alone.

In this case, PRefChem brings together the world-class expertise of Saudi Aramco and Petronas in project management, operations, technology, and marketing, as well as the strength of the world’s largest exporter of crude oil.

In other words, PRefChem checks all the boxes, and we wish Dr. Colin Wong and his JV management team every success.

Ladies and Gentlemen, today’s milestones bring us another step closer to project completion.

And with another big push by all stakeholders, I have no doubt that we will all be back soon to celebrate a successful and safe commissioning and startup.

Thank you, and I wish you and your families a joyous and blessed Ramadan ahead.

Ramadan Mubarak!