KUALA LUMPUR, Malaysia – BASF and PETRONAS have signed a Memorandum of Understanding (MoU) to undertake a joint feasibility study to produce specialty chemicals in Malaysia, a move that would extend the two parties’ existing business collaboration in the country. The partners are considering a potential joint investment sum of approximately EUR 1.0 billion.
Under the terms of the MoU, the two parties will evaluate the technical, commercial and economic viability of jointly owning and operating world-scale facilities for the production of specialty chemicals including non-ionic surfactants, methanesulfonic acid, iso-nonanol as well as other C4-based specialty chemical products. The final scope of the investments will be determined following the outcome of the joint feasibility study, which is targeted to be completed in 2011.
The proposed move by PETRONAS and BASF will build on their successful strategic partnership in the country, established in 1997. The partnership, via BASF PETRONAS Chemicals Sdn Bhd, of which BASF owns 60 percent shares, currently owns and operates an integrated complex that produces acrylic monomers, oxo products and butanediol. As for the subsequent phase of the collaboration, PETRONAS Chemicals Group and BASF will jointly evaluate the outcome of the joint feasibility study and will adopt it as part of their strategic growth plans, if technically and commercially viable.
PETRONAS is a Global Fortune 500 company wholly owned by the Government of Malaysia, principally involved in all spectrums of integrated oil, gas and petrochemical industries.