Saudi Aramco set to invest $7 bln in Petronas refinery

State-owned Saudi Aramco is planning to invest $7 billion in an oil refinery, which will be built by Petroliam Nasional Bhd (Petronas) in Johor, Malaysia, Reuters reported on Monday, citing Malaysian Prime Minister Najib Razak.

The new refinery is part of the planned $27 billion Refinery and Petrochemical Integrated Development (RAPID) project, sponsored by state-run Malaysian energy firm Petronas.  

The decision was made before noon after discussions between top executives from both companies, Razak added in a press conference after hosting a state luncheon for Saudi Arabia's King Salman, without giving further details.

"I just want to confirm that the agreement has been reached and King Salman is satisfied that the deal will be signed tomorrow," Najib said.

In January, media reports said the Saudi oil giant had dropped plans for the multi-billion-dollar refining and petrochemical joint venture with Petronas.

The RAPID is designed to have a refinery with a capacity of 300,000 barrel per day and a petrochemical complex with an output capacity of 7.7 million metric tons. The project is expected to commence operations in Q1-2019.