OREANDA-NEWS. Petronas, Malaysia's state-owned oil and gas company, and Versalis, Eni's chemical subsidiary and a global leader in the elastomers industry, have signed a Shareholders' Agreement (SHA) to set up a joint venture company that will manufacture, sell and market elastomer products produced at Petronas' proposed Refinery and Petrochemical Integrated Development (RAPID) complex in Pengerang, Johor, Malaysia.

The Petronas Refinery and Petrochemical Corporation (PRPC) a subsidiary of Petronas that is undertaking the RAPID project, will have a 60 per cent interest in the proposed joint venture, while Versalis will own the remaining 40 per cent.

The agreement, for an initial period of 30 years, was signed in Kuala Lumpur in the presence of Versalis' CEO Daniele Ferrari, Petronas' Chief Operating Officer and Executive Vice President for Downstream Business Datuk Wan Zulkiflee Wan Ariffin and the PRPC CEO Puan Juniwati Rahmat Hussin.

“This joint venture will create a unique opportunity for both parties to take our partnership to a new frontier; for PRPC to progressively advance its position in the areas of elastomers, and for Versalis to set a foothold in Asia Pacific region, where the growth of elastomers is forecasted to be very attractive in years to come,' says Datuk Wan Zulkiflee Wan Ariffin, Petronas' Chief Operating Officer and Executive Vice President for Downstream Business.

“This project represents an important new milestone for our company - thanks to this investment Versalis will have a more global presence in the elastomer business and an industrial presence in an area where we see a very promising growth for the synthetic rubbers we will produce. We are really proud to have the chance to participate and contribute to the success of the Rapid project', says Versalis' CEO, Daniele Ferrari.

Under the Shareholders' Agreement, the joint venture company, using Versalis' technology licence and technical know-how, will produce and market synthetic rubbers from four separate elastomer plants it proposes to build within RAPID.

Versalis brings proven elastomer operation records and a wealth of commercial experience and expertise to the partnership that will contribute towards strengthening Petronas and Malaysia's position as a key downstream petrochemical player in Asia Pacific.