The Malaysian Prime Minister, Najib Razak, announced that Saudi Arabia’s state oil company Saudi Aramco will invest $7b into an oil refinery and petrochemical project in Malaysia’s southern state of Johor, Free Malaysia Today reported.

As informed by Channel News Asia, Aramco will take a 50% stake in select ventures and assets in the Refinery and Petrochemical Integrated Development (RAPID) project developed by Malaysian state-controlled Petroliam Nasional Berhad (Petronas).

Furthermore, Aramco will supply up to 70% of the crude feedstock requirement of the refinery, with natural gas, power and other utilities to be supplied by Petronas.

Aramco’s CEO, Amin Nasser, stated that “Malaysia offers tremendous growth opportunities and today’s agreement further strengthens Saudi Aramco’s position as the leading supplier of petroleum feedstock to Malaysia and Southeast Asia.”

Additionally, he explained that “with RAPID’s strategic location in a prolific hub, it would also serve to enhance energy security in the Asia-Pacific region.”