Malaysia's Petronas budgets $6.0b for portfolio deals

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FE Team | Published: June 24, 2019 21:09:11

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KUALA LUMPUR, June 24 (Reuters): The chemicals arm of Malaysia's state energy firm Petronas plans to spend roughly $6 billion over the next 15 to 20 years to expand its specialty chemicals portfolio through acquisitions and partnerships, the unit's chief executive said on Monday.
The budget is part of Petronas Chemicals Group Bhd's efforts to make high-margin specialty chemicals a central part of its business, Sazali Hamzah said in an interview with Reuters at the Asia Oil & Gas Conference.
"By doing that we are going to diversify our portfolio and our dependency on crude and gas will be a lot less," he said.
Petronas Chemicals has been looking to grow rapidly in specialty chemicals, which are raw materials used to manufacture consumer products such as high-performance tyres, medical gloves and LED televisions.
Other major oil companies such as Saudi Aramco have also been expanding into petrochemicals in recent years to diversify from crude oil production.
In May, Petronas Chemicals acquired Netherlands-based Da Vinci Group BV for 163 million euros ($186 million) in the first acquisition of its specialty chemicals push.