Shearman & Sterling represented PETRONAS on its $15 billion ($10 billion of senior debt) project financing relating to its joint venture with Saudi Aramco in Malaysia, which includes a refinery, cracker, and two downstream petrochemical projects that form part of its approximately $28 billion RAPID (Refinery and Petrochemical Integrated Development) project.
One of the largest and most complex cross-border project financings in the sector, the financing documentation was engineered for maximum flexibility due to the integrated, dual-borrower nature of the project, while anticipating future debt raising. The refinery and petrochemical project will be the largest downstream petrochemical project in Asia following completion. With capacity to refine 300,000 barrels of crude per day, the refinery will produce a wide range of refined petroleum products, including gasoline and diesel which meets Euro 5 fuel specifications, and will produce 3.5 million tons per annum of products. The RAPID project forms part of the larger Pengerang Integrated Petroleum Complex (PIC) being developed in the Malaysian state of Johor. The PIC is a 22,000 acre complex which includes a cogeneration plant, an LNG regasification terminal, a raw water supply project, a deep water terminal and centralized and shared utility facilities. Shearman & Sterling’s Project Development & Finance team has been advising PETRONAS on various elements of the RAPID project since 2012.
The team below also included associates Nick Sinclair and Anna Lam (both Singapore-Project Development & Finance).