PETRONAS and Versalis Sign Shareholders Agreement to Produce Synthetic Rubbers in Malaysia

PETRONAS, Malaysia’s national oil and gas company, and Versalis, Eni’s chemical subsidiary and a global leader in the elastomers industry, have signed a Shareholders’ Agreement to set up a joint venture company that will manufacture, sell and market elastomers produced within PETRONAS’ proposed Refinery and Petrochemical Integrated Development (RAPID) complex in Pengerang, Johor, Malaysia.

PETRONAS Refinery and Petrochemical Corporation (PRPC) Sdn Bhd, a subsidiary of PETRONAS that is undertaking the RAPID project, will have a 60 per cent interest in the proposed joint venture, while Versalis will own the remaining 40 per cent.

The agreement, for an initial period of 30 years, was signed in Kuala Lumpur on 12 November 2013 by PRPC’s Chief Executive Officer Juniwati Rahmat Hussin and Versalis’ Chief Executive Officer Daniele Ferrari. Also present were PETRONAS’ President & Group Chief Executive Officer Tan Sri Dato’ Shamsul Azhar Abbas and PETRONAS’ Chief Operating Officer and Executive Vice President for Downstream Business Datuk Wan Zulkiflee Wan Ariffin.

Under the agreement the joint venture company, using Versalis’ technology licence and technical know-how, will produce and market synthetic rubbers from four separate elastomer plants it proposes to build within RAPID.

Versalis brings into the partnership proven elastomer operation records and a wealth of commercial experience and expertise that would significantly contribute towards strengthening PETRONAS and Malaysia’s position as a key downstream petrochemical player in Asia Pacific.

“This joint venture will create a unique opportunity for both parties to take our partnership to a new frontier; for PRPC to progressively advance its position in the areas of elastomers, and for Versalis to set a foothold in Asia Pacific region, where the growth of elastomers is forecasted to be very attractive in years to come,” said Datuk Wan Zulkiflee.

“This project represents a new important milestone for our company - thanks to this investment Versalis will have a more global presence in the elastomer business and an industrial presence in an area where we see a very promising outlook of growth for the synthetic rubbers we will produce. We are really proud to have the chance to participate and contribute to the success of the RAPID project,” said Mr Ferrari.

The proposed RAPID project is PETRONAS’ largest liquid-based green-field downstream undertaking in Malaysia. It will have a 300,000-barrel per day refinery to supply the petrochemical complex, apart from producing a host of refined petroleum products, including gasoline and diesel that meet the Euro 4 and Euro 5 fuel specifications.

The petrochemical component of the project will allow PETRONAS to expand its products portfolio from commodity petrochemicals to premium differentiated and specialty chemicals, capitalising on the growing demand for these higher value products in Asia Pacific.