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Petronas to Buy Phillips 66's Stake in Malaysia Refinery

Petronas has agreed to buy out the remaining 47% in Malaysian Refining Company Sdn. Bhd. held by Phillips 66 (PSX) for around $635 million.

The acquisition is expected to be completed by year-end, Petronas said in a statement. MRC mainly processes sour middle east crude oil and has a refining capacity of 170,000 barrels per day at its refinery in the western Melaka state.

"Our acquisition of Phillips 66's interest in MRC will enable us to realize greater synergy between our refineries in Melaka and it will also strengthen our presence in the refining and trading business," said Wan Zulkiflee Wan Ariffin, chief operating officer of Petronas.

For Phillips 66, the sale would allow the company to "redeploy resources to more strategic area of our business," said executive vice president of refining Larry Ziemba.

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