China acquires 51% of Malaysia’s Shell Refining Company

According to media reports, private Chinese refiner Shangdong Hengyuan Petrochemical Company Limited acquired 51% of Malaysia’s Shell Refining Company through a subsidiary in Malaysia, Malaysia Hengyuan International Limited. The Chinese company also said it will buy all the stakes.

With this purchase, Shangdong Hengyuan became one of the few smaller refining companies in China which has a refinery overseas, apart from the bigger ones such as Sinopec and PetroChina, the reports revealed.

The Chinese company reportedly said this acquisition will enable them to increase their overseas sales volume considerably as well as the crude oil that they can use by 6 million tons. The company also said they are planning to increase SRC’s earnings by getting into wholesale trading and petrochemicals and to continue to supply petroleum products to Shell’s downstream business in Malaysia.