(EnergyAsia, November 13 2014, Thursday) — Malaysian state energy firm Petronas said it will fully own Malaysian Refining Company Sdn Bhd (MRC) when it completes the buy-out of its US partner’s 47% stake for US$635 million in cash.

Petronas will take full control of MRC’s 170,000 b/d refinery in Melaka state on the west coast of peninsular Malaysia after completing the transaction with Phillips 66 Asia Ltd, a subsidiary of New York Stock Exchange-listed Phillips 66. The two companies expect the deal to be completed on December 31 2014.

Started up in 1998, the refinery processes both high and low-sulphur crude. It is located near an older 100,000 b/d refinery, fully owned by Petronas, that processes light low-sulphur crude and condensates.

Petronas’s downstream CEO Wan Zulkiflee Wan Ariffin, 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.”

Larry Ziemba, Phillips 66’s EVP for refining, said: “Phillips 66 is pleased with the agreement to sell its share of Malaysian Refining Company to Petronas. This divestiture allows us to redeploy resources to more strategic areas of our business.”