Saudi oil giant Aramco will buy an equity stake in Malaysian firm Petronas' refining and petrochemicals project in the southeast Asian country, the companies confirmed today, investing a total of US$7 billion (RM31.10 billion).

In a joint statement, the firms said Aramco will take a 50 percent stake in select ventures and assets in the Refinery and Petrochemical Integrated Development (Rapid) project developed by Malaysian state-controlled Petroliam Nasional Berhad, known as Petronas.

The deal signing was formally witnessed by Malaysian Prime Minister Najib Abdul Razak and Saudi King Salman, currently on a state visit to Malaysia.

Petronas' chief executive officer Wan Zulkiflee Wan Ariffin told reporters Aramco will take a 50 percent stake in Rapid's refinery and cracker project.

Aramco will supply up to 70 percent of the crude feedstock requirement of the refinery, with natural gas, power and other utilities to be supplied by Petronas, according to the statement.

Rapid, located in the southern Malaysian state of Johor, will contain a 300,000 barrel-per-day oil refinery and a petrochemical complex with a production capacity of 7.7 million tonnes. It is expected to go online in the first quarter of 2019.

- Reuters