Petronas, Malaysia’s state-owned oil and gas company, and Italy-based Versalis, Eni’s chemical subsidiary and a global leader in the elastomers industry, are moving ahead with the joint venture company announced last year that will produce elastomer products at Petronas’ proposed Refinery and Petrochemical Integrated Development (RAPID) complex in Pengerang, Johor, Malaysia.

The Petronas Refinery and Petrochemical Corporation (PRPC), a subsidiary of Petronas that is undertaking the RAPID project, will have a 60% interest in the proposed joint venture, while Versalis will own the remaining 40%.

The agreement, for an initial period of 30 years, was signed in Kuala Lumpur in the presence of Versalis’ CEO Daniele Ferrari, Petronas’ CEO for Downstream Business Wan Zulkiflee Wan Ariffin and the PRPC CEO Juniwati Rahmat Hussin.

Under the Shareholders’ Agreement, the joint venture company, using Versalis’ technology licence and technical know-how, will produce and market synthetic rubbers from four separate elastomer plants it proposes to build within RAPID.

Versalis says it brings proven elastomer operation records and a wealth of commercial experience and expertise to the partnership that will contribute towards strengthening Petronas and Malaysia’s position as a key downstream petrochemical player in Asia Pacific.

The proposed RAPID project is Petronas’ largest liquid-based green-field downstream undertaking in Malaysia. It will have a 300,000-barrel per day refinery to supply the petrochemical complex, as well as producing a host of refined petroleum products, including gasoline and diesel that meet the Euro 4 and Euro 5 fuel specifications. The petrochemical component of the project will allow Petronas to expand its products portfolio from commodity petrochemicals to premium differentiated and specialty chemicals, capitalising on the growing demand for these higher value products in Asia Pacific.