Aramco, Malaysia’s Petronas said to seek $7 bln loan

Saudi Arabian Oil Co. (Saudi Aramco) and Malaysia’s state-owned oil corporation have approached banks seeking proposals to finance about $7 billion for a planned refinery and a petrochemical complex in Malaysia, Bloomberg reported, citing unnamed people familiar with the matter.

Aramco and Malaysia’s Petroliam Nasional Berhad (Petronas) are looking for finance for two projects worth a total of $12 billion. The two oil firms will be constructing the projects in accordance with a memorandum of understanding they have signed, the sources said.

The banks are expected to submit proposals by later this month.

The planned projects are part of the $27 billion Refinery and Petrochemicals Integrated Development that Petronas is building.

Saudi Aramco, the world’s biggest oil exporter, already has refining and petrochemical partnerships in the U.S., China, South Korea and Japan, as well as in Saudi Arabia, giving it a share in plants capable of processing 5.4 million barrels a day. It is also looking to develop more joint ventures in countries including the U.S., China, Indonesia, India, Vietnam and South Africa, Chief Executive Officer Amin Nasser told reporters last month.