By Jason Ng
KUALA LUMPUR--Malaysia's state oil and gas company Petroliam
Nasional Bhd., or Petronas, said Wednesday it has agreed to buy out
the remaining 47% in Malaysian Refining Company Sdn. Bhd. held by
Phillips 66 (PSX) for around $635 million.
The acquisition is expected to be completed by year-end,
Petronas said in a statement. MRC mainly processes sour middle east
crude oil and has a refining capacity of 170,000 barrels per day at
its refinery in the western Melaka state.
"Our acquisition of Phillips 66's interest in MRC will enable us
to realize greater synergy between our refineries in Melaka and it
will also strengthen our presence in the refining and trading
business," said Wan Zulkiflee Wan Ariffin, chief operating officer
of Petronas.
For Phillips 66, the sale would allow the company to "redeploy
resources to more strategic area of our business," said executive
vice president of refining Larry Ziemba.
Write to Jason Ng in Kuala Lumpur at jason.ng@wsj.com
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