OREANDA-NEWS. November 19, 2014. PETRONAS announced it has reached an agreement with Phillips 66 Asia Ltd, a subsidiary of Phillips 66 (NYSE: PSX), to acquire its 47 percent interest in Malaysian Refining Company Sdn Bhd (“MRC”), which will result in PETRONAS wholly owning MRC.
 
PETRONAS’ Datuk Wan Zulkiflee Wan Ariffin, Chief Operating Officer and Executive Vice President & CEO Downstream, said, “Our acquisition of Phillips 66’s interest in MRC will enable us to realise greater synergy between our refineries in Melaka and it will also strengthen our presence in the refining and trading businesses.”
 
He added PETRONAS has an excellent working relationship with Phillips 66 over the years that is expected to continue.
 
"Phillips 66 is pleased with the agreement to sell its share of Malaysian Refining Company to PETRONAS,” said Larry Ziemba, executive vice president of Refining for Phillips 66. "This divestiture allows us to redeploy resources to more strategic areas of our business. PETRONAS has been a strong partner over the years and we value our relationship.”
 
Under the terms of the agreement, PETRONAS will pay USD 635 million in cash with adjustment at completion. Both parties anticipate the transaction to be completed on 31 December 2014.
 
MRC was commissioned in 1998 and has a refining capacity of 170,000 barrels per day. The refinery is located in Melaka, Malaysia.