National oil companies Saudi Arabian Oil Co. and Petroliam Nasional Bhd. have agreed to form two joint ventures for the Refinery and Petrochemical Integrated Development project, or RAPID, in Malaysia, according to a March 28 press release.

Located on a 6,239-acre site about 400 kilometers south of Kuala Lumpur, the RAPID project forms part of Malaysia's 22,000-acre Pengerang Integrated Complex, or PIC, in the southern state of Johor.

The joint ventures allow the two companies equal ownership and participation in the operations of a new refinery and selected petrochemical facility within the PIC. Saudi Aramco will supply 50% of the refinery's crude feedstock requirements with the option of increasing to 70%, while Petronas and its affiliates will supply natural gas, power and other utilities. Each party will also share off-take rights for the facility's production.

The refinery has a capacity of 300,000 barrels per day and will produce a range of refined petroleum products, which includes gasoline and diesel. It will also provide feedstock for an integrated petrochemical complex that is capable of producing 3.3 million tons per annum of petrochemical products.

The refinery is set to start-up by the first quarter of 2019.