Misr Petroleum Company and Petronas are preparing to launch a new joint venture (JV) for producing high quality lubricants and exporting them during Q1 2019, governmental sources told Al Borsa.

The trademark for the new JV will have the two companies’ names, and a capital ranging between EGP 180 million and EGP 190 million, which will be halved between the two firms and will increase in the upcoming years.

The agreement projects that Misr Petroleum’s lubricant production capacity will increase from 60% to 100%, the sources pointed out.

Misr Petroleum and Petronas signed a memorandum of understanding (MoU) in July that paved the way for the creation of the JV.

According to the terms of the MoU, the JV will produce 20,000 tons of first class oils and 10,000 tons of diesel each year. It will import crude oil, refine it in Egypt and re-export the product. Production will take place at Misr Petroleum’s refining complex at Amreya, while the Malaysian company will provide technological assistance.