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Publish Date : 29-Apr-2014

Merapoh Resources Corp Sdn Bhd has signed a partnership deal with Chinese state-owned China Energy Huacheng Industrial Investment Co Ltd (China Energy) which will observe the foreign firm rising as a majority 70% equity stake owner in the Malaysian company.

China Energy will devote close to US$10 Billion (RM32.67 billion) to facilitate the restructured Merapoh to carry on with its plans and projects, the most immediate of which will be the development of an oil refinery complex in Kedah.

Merapoh chairman Bistamam Ramli said, "Covering 1,000ha, the refinery complex will the biggest in Malaysia".

The Merapoh refinery is planned to create 800,000 barrels of throughput per day however the initial production target is about 400,000 barrels.

Bistamam noted, "At full production capacity, Merapoh will effectively be capable of meeting an estimated 8% of China's total need for refined petroleum and petroleum products, based on China's current demand of 10 million barrels per day".

The project is likely to generate 10,000 jobs including highly-skilled jobs in the state.

The partnership declaration is ready to revive the Yan Petroleum Industrial Zone in Kedah that has been in the lurch after its announcement in 2007.

Merapoh signed an agreement with the Kedah government for the development of a US$10 billion refinery project in Yan, Kedah in 2009.

Kedah Mentri Besar Mukhriz Mahathir said the state government is keen to revive the project but several matters had to be resolved first, including land acquisition, investment partner of Merapoh, project developer and source of crude oil.

A tie-up with China's state oil company China National Petroleum Corp was established to market Merapoh's refinery products for 20 years.

Chairman Zhou Qing Jun represented China Energy at the signing of the partnership between Merapoh and China Energy.

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