Saudi oil giant Aramco will buy an equity stake in Malaysian firm Petronas' major refining and petrochemical project, pumping in $7 billion in its biggest downstream investment outside the kingdom, the companies said on Tuesday.
The deal will boost Aramco's downstream business ahead of a planned initial public offering next year and also bolsters Malaysia's state-controlled Petroliam Nasional Bhd—known as Petronas—after it cut spending because of the slump in oil prices, Reuters reported. In a joint statement, the firms said Aramco will take a 50% stake in select ventures and assets in the refinery and petrochemical integrated development project developed by Petronas. Signing of the deal was witnessed by Malaysian Prime Minister Najib Razak and Saudi King Salman, currently on a state visit to Malaysia—the first in over a decade. "Malaysia offers tremendous growth opportunities and today's agreement further strengthens Saudi Aramco's position as the leading supplier of petroleum feedstock to Malaysia and Southeast Asia," Aramco CEO Amin Nasser said.
The two key raw material for steel production, Iron Ore and Scrap prices are moving in opposite directions. The Vale disaster at the Brumadinho tailing dam in late January this year has led to a cut in iron ore supplies, and a spike in spot prices making them to hit five years high, leaving no margins for blast furnaces.
The Iranian Parliament’s Research Center (IPRC) released a new plan on how to deflate the US economic pressures by cutting off dependence on oil revenues as a counter-strategy against the US sanctions on Iranian crude supplies.
Former Managing Director of the National Petrochemical Company (NPC) Abbas Shae'ri Moqaddam downplayed the impacts of the US petrochemical sanctions against Iran, saying that finding the origin of such products is not easy.
Iran’s domestic coal consumption revolves around 2 million tons per year, 1.5 million tons of which are supplied by domestic production while the remaining 500,000 tons are imported.
Preliminary data released by Japan’s Ministry of Finance show that the country’s crude oil imports from Iran dropped 42% month-on-month to 169,100 barrels per day in April.
After GAIL, ONGC too has expressed angst at overcharging by domestic steelmakers. The state-run oil and gas major has alleged that domestic firms have quoted prices on 'the higher side’ in reply to its tenders invited for procurement of regular casing pipes.