Saudi Aramco finalizes refinery deal with Malaysia’s Petronas

Saudi Aramco finalized a deal on Wednesday with Malaysian state energy company Petronas. (AFP)
Updated 03 April 2018
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Saudi Aramco finalizes refinery deal with Malaysia’s Petronas

DUBAI: Saudi Aramco finalized a deal on Wednesday with Malaysian state energy company Petroliam Nasional Berhad (Petronas) to invest in a refinery project off Malaysia.
The Saudi oil giant agreed in February last year to buy a $7 billion stake in Petronas’ Petrochemical Integrated Development (RAPID) project, but the issue was then delayed by “technical issues.”
RAPID is a $27 billion project located between the Malacca Strait and the South China Sea, a conduit for Middle East oil and gas bound for China, Japan and South Korea.
The two companies said in a statement that they signed the deal on Wednesday, but did not confirm the value of Aramco’s investment.
Saudi Aramco will supply 50 percent of the refinery’s crude oil with an option of increasing it to 70 percent, the statement said.
The development will contain a 300,000 barrel-per-day oil refinery and a petrochemical complex with a capacity of 7.7 million metric tons a year. Refinery operations are set to begin in 2019, with petrochemical operations to follow about 6-12 months afterward.


General Motors Korea and union to hold new round of wage talks

Updated 6 min 11 sec ago
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General Motors Korea and union to hold new round of wage talks

SEOUL: General Motors’ South Korean unit and its labor union are set to hold another round of wage talks on Friday afternoon, keen to stave off a threat by the US automaker to seek bankruptcy for the loss-making unit.
GM, which in February announced its plan to shut down one of its plants in Korea, wants wage concessions from its labor union as well as government funding and incentives to save three other factories in the country.
The Detroit automaker has said the unit is likely to file for bankruptcy if there was no restructuring agreement by Friday. Marathon talks on Thursday failed to reach an agreement.
The two sides will hold another round of talks at 1 p.m. Korea time (0400 GMT), a union official said, adding that the most thorny issue is job security for 680 workers at the Gunsan factory that is due to be closed by May.
“We don’t want a disaster. We still have to keep in mind the worst situation,” he said, declining to be identified due to the sensitive nature of the talks.
“Today is an important day and we will concentrate our efforts on the negotiations.”
Any deal reached would be subject to a vote by union members in the coming days.
If they fail to reach a deal, GM Korea plans to hold a board meeting at around 8 p.m. to discuss a plan to file for bankruptcy protection for the operation, a source familiar with the matter said, also declining to be identified.
GM Korea is “committed to reach a tentative agreement with the labor union today to support the plan to make the company profitable and viable for the long-term,” said company spokesman Park Hae-ho.