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PETRONAS and BASF move ahead with expansion of partnership

Joint news release PETRONAS and BASF move ahead with expansion of partnership in Malaysia

 Partners sign "Heads of Agreement" for development of new project in Pengerang  Further progress on expansion plan for current joint venture in Kuantan Kuala Lumpur, Malaysia – March 6, 2012 – PETRONAS and BASF have taken the

Published 12 years ago | About a 4 minute read

Joint news release PETRONAS and BASF move ahead with expansion of partnership in Malaysia  Partners sign "Heads of Agreement" for development of new project in Pengerang  Further progress on expansion plan for current joint venture in Kuantan Kuala Lumpur, Malaysia – March 6, 2012 – PETRONAS and BASF have taken the next steps in the development of the previously announced €1 billion investment that will expand their partnership in Malaysia, involving projects at their existing venture in Kuantan and at a new site within PETRONAS’ proposed Refinery & Petrochemical Integrated Development (RAPID) complex in Pengerang, Johor. These projects are to be implemented between 2015 and 2018. The two partners today entered into a "Heads of Agreement" (HOA) for the development of the new project in Pengerang, signed by Dr. Martin Brudermueller, Vice Chairman of the Board of Executive Directors, BASF SE, and Datuk Wan Zulkiflee Wan Ariffin, Executive Vice President of Downstream Business, PETRONAS. Under the terms of the HOA, the partners have agreed to form a new entity (BASF 60%; PETRONAS 40%) to jointly own, develop, construct and operate production facilities for isononanol, highly reactive polyisobutylene, non-ionic surfactants, methanesulfonic acid, and plants for precursor materials. These world-scale facilities will become an integral part of PETRONAS’ RAPID project. PETRONAS - through its subsidiary PETRONAS Chemicals Group Bhd - and BASF are also making progress with the feasibility study to expand the operation of BASF PETRONAS Chemicals Sdn Bhd in Kuantan. The two partners are considering the expansion of their C3 value chain with a new plant for superabsorbent polymers, as well as the expansion of the production capacity of their existing glacial acrylic acid unit. BASF PETRONAS Chemicals (BASF 60%; PETRONAS 40%) was founded in Page 2 P175/12e 1997. The company currently operates an integrated complex with acrylic monomers, oxo products and butanediol production facilities at the Gebeng Industrial Zone, Pahang. “With our new development in Pengerang and the expansion of the “Verbund” site in Kuantan, we will be able to improve supply to our customers in Asia Pacific with specialty chemicals that help meet the needs of a rapidly growing population, especially in the ASEAN market,” said Dr. Brudermueller, who is responsible for BASF’s Asia Pacific operations. “At the same time these projects demonstrate the vitality and success of our sustainable partnership with PETRONAS.” Datuk Wan Zulkiflee said, “The development of a new specialty chemical products portfolio is an important component of PETRONAS' plan to facilitate the sustainable development of our downstream petrochemical business. This complements our integrated plan to become a key player in the region as well as to spur domestic investment in the oil, gas and petrochemical industries.” The chemicals to be produced at the new facilities will directly contribute to the sustainable development of the Asia Pacific region, especially in ASEAN. For example, nonionic surfactants are used in almost all cleaning applications, particularly in environmentally friendly laundry detergents as well as in technical processes, including as ingredients for auxiliaries in the textile and leather industry. Methanesulfonic acid is utilised in many different applications wherever a strong, readily biodegradable and low-corrosive acid is needed, such as for use in detergents, electroplating, and chemical synthesis. Isononanol is a feedstock for the production of plasticizers, which are used in a variety of industries including construction and automotive. Superabsorbent polymers are the key ingredients in disposable diapers and adult hygiene products. Page 3 P175/12e About PETRONAS PETRONAS is a Global Fortune 500 company wholly owned by the Government of Malaysia. It is principally involved in all spectrum of integrated oil, gas and petrochemical industries with operations and strategic presence in more than 60 countries worldwide. For the year ended 31 March 2011, PETRONAS recorded a group revenue of US$76.8 billion. More information on PETRONAS is available on www.petronas.com. About BASF BASF is the world’s leading chemical company: The Chemical Company. Its portfolio ranges from chemicals, plastics, performance products and crop protection products to oil and gas. We combine economic success, social responsibility and environmental protection. Through science and innovation we enable our customers in almost all industries to meet the current and future needs of society. Our products and system solutions contribute to conserving resources, ensuring healthy food and nutrition and helping to improve the quality of life. We have summed up this contribution in our corporate purpose: We create chemistry for a sustainable future. BASF posted sales of about €73.5 billion in 2011 and had more than 111,000 employees as of the end of the year. BASF shares are traded on the stock exchanges in Frankfurt (BAS), London (BFA) and Zurich (AN). Further information on BASF is available on the Internet at www.basf.com . Media contacts BASF PETRONAS Genevieve Hilton Azman Ibrahim Phone: +(852) 2731 0197 Phone: +(603) 2331 2140 Mobile: +(852) 9025 9857 Mobile: +(6019) 223 0199 [email protected] [email protected] Jennifer Moore-Braun Phone: +(49) 621 60 99123 [email protected]