CNPC to invest in Merapoh Resources's Malaysian project

Jul. 14, 2009 (China Knowledge) - China National Petroleum Corp (CNPC), the country's largest integrated oil and gas company, will buy a stake in a US$10-billion refining project belonging to Merapoh Resources Corp in Kedah, Kuala Lumpur, Malaysia, sources reported.

The Malaysian oil enterprise, Merapoh Resources, said that it will sign a contract with the Kedah government on Jul. 15 to build a refinery with a designed crude oil processing capability of 350,000 barrels per day. The refinery is scheduled to be operational in 2013.

In addition to CNPC, the refining project's other partners include SK Engineering, SVL Engineering Services and investors from Dubai, said Merapoh Resources without elaborating.

An industry insider said that Merapoh Resources has signed a 20-year contract with CNPC, which has cooperated with the Malaysian firm since 2007, to sell the refining project's production rights. However, the purchase price is not yet clear.

The refining project is a part of a Malaysian project that will consist of two refineries and a pipeline crossing three states in the country, sources reported.