Petronas agrees partnership to develop oil industry chemicals

PETRONAS Chemicals Group (PCG) and Scomi Energy Services have agreed to work together to research, develop and sell chemicals for the oil and gas sectors.

The agreement formalises an existing R&D partnership started in 2016 aimed at developing chemicals for the oil and gas industry; and adds a second agreement to commercialise a water-based mud additive used to improve shale inhibition during drilling.

PCG CEO Datuk Sazali Hamzah said: “This partnership is advantageous for both PCG and Scomi, as it enables us to come together in creating innovative and sustainable solutions for our customers”.

Speaking to Reuters the day after the deal was announced, Hamzah said that PCG plans to spend around US$6bn over the next 15–20 years expanding its specialty chemicals portfolio through buyouts and partnerships. Hamzah said in May that the firm will diversify its product portfolio into differentiated and specialty chemicals as it bought Dutch specialty chemicals firm Da Vinci Group for around US$180m.