BEIJING Private Chinese refiner Shandong Hengyuan Petrochemical Co closed a $66.3 million acquisition of a stake in Royal Dutch Shell's Malaysia oil plant on Thursday, according to Shell and a local media report.
Hengyuan Petrochemical agreed in February to buy a 51 percent stake in the 156,000 barrels per day refinery at Port Dickson, becoming one of the few smaller refining firms in China to own an overseas refinery.
Citing senior company executives attending a deal-closing ceremony in Kuala Lumpur, the media report said Hengyuan will apply advanced refining technology to upgrade fuel quality of the Port Dickson plant that mainly supplies fuel to Malaysia.
"The Shell Malaysia plant is still using Euro II fuel standards, while the technology Hengyuan is applying is already of Euro V," Wang Zongquan, vice president of the Shandong-based Hengyuan Petrochemical, was quoted as saying by Dezhou television on its social media platform.
In an interview with Reuters in March, Hengyuan's chairman said the company wanted to boost its oil trading by working with Shell and to expand higher-value chemicals business at its 70,000 bpd refinery in Shandong.
Shell confirmed in a statement that the deal had closed.
(Reporting by Chen Aizhu; editing by David Clarke)