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| 20 March, 2018

Malaysia says concludes talks with Saudi Aramco over RAPID investment

Saudi Aramco agreed last February to buy a $7bln stake in the RAPID project of Malaysian state energy firm Petroliam Nasional Bhd

Russian pension funds were considering participation in the Saudi Aramco IPO. Image for illustrative purposes.

Russian pension funds were considering participation in the Saudi Aramco IPO. Image for illustrative purposes.

REUTERS/Hamad I Mohammed

KUALA LUMPUR  -

* Malaysia has completed talks with Saudi Aramco over the oil giant's planned $7 billion investment in Petronas' Refinery and Petrochemical Integrated Development (RAPID) project, said the minister in the prime minister's department, Abdul Rahman Dahlan

* Aramco's investment will come in by the end of the month, minister Abdul Rahman said on Tuesday at the OTC Asia conference

* Saudi Aramco agreed last February to buy a $7 billion stake in the RAPID project of Malaysian state energy firm Petroliam Nasional Bhd

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* Minister Abdul Rahman had said in November the companies will finalise the joint venture after resolving "technical issues"

* RAPID is a $27 billion project located between the Malacca Strait and the South China Sea, conduits for Middle East oil and gas bound for China, Japan and South Korea

* RAPID will consist of a 300,000 barrel-per-day oil refinery and a petrochemical complex with a capacity of 7.7 million metric tonnes a year

* Refinery operations are set to begin in 2019, with petrochemical plants to follow 6-12 months later

(Reporting by A. Ananthalakshmi, Emily Chow anad Florence Tan; Editing by Tom Hogue) ((ananthalakshmi.as@thomsonreuters.com; +603 2333 8036; Reuters Messaging: ananthalakshmi.as.thomsonreuters.com@reuters.net; Twitter: @AnanthalakshmiA))