KUALA LUMPUR (March 6): Petroliam Nasional Bhd (Petronas) would be able to maintain a net cash position in 2017, contrary to initial assumptions it would incur incremental borrowings to fully fund the Refinery and Petrochemical Integrated Development (RAPID) project in Pengerang, Johor, on its own. Moody’s Investor Services Inc, which made that assumption previously, said due to the certainty in Petronas’ net cash maintenance, the latter's credit metrics would continue to remain well-positioned for its A1 ratings. “The tie-up also brings in a strong downstream partner for Petronas, given that Saudi Aramco has a strong track record in the development of large-scale projects. “Because Saudi Aramco and Petronas will hold equal ownership in the RAPID project, funding requirements and project execution risk will be spread between them. “Saudi Aramco will also supply up to 70% of RAPID refinery’s crude feedstock requirement, enhancing long-term energy security both for Malaysia and Southeast Asia,” it said.

Source: The Edge Markets March 06, 2017 04:07 UTC