Doha, Qatar: Qatar Islamic Bank (QIB) Group which includes Asian Finance Bank based in Malaysia, have signed a Memorandum of Understanding with Gulf Petroleum Berhard, Malaysia, a subsidiary of Gulf Petroleum Limited WLL, Qatar regarding the consideration of financing a new Oil and Gas complex in the State of Perak, Malaysia. The project would comprise of an oil refinery, a petrochemicals plant and petroleum terminal at a cost of USD 5 billion.
Tackling the issue of competition on oil sector in Asia, Al Duleimi said: "The market can entail everybody, and this refinery won't be the last, as demand in Southeast Asia is growing by 3-5% p.a. in average, and this is encouraging enough to attract investments in that field.”
The MoU, signed by Mr. Salah Al Jaidah, Chief Executive Officer of QIB, and Mr. Abdul Aziz Al Duleimi, Chairman of Gulf Petroleum Berhard, Malaysia, stipulates that QIB would study and eventually lead a consortium of banks and financial institutions to arrange the funding covering both financing and equity elements of the project. The MoU also includes the advisory element towards the funding of the project.
Mr. Jean-Marc Riegel, QIB’s General Manager – Investment Banking & Development Group said of this project’s MoU, ‘It illustrates the international expansion strategy of the bank and enables QIB to be now considered as financial partner of national companies which have sizeable activities abroad. It’s an evidence of the company’s trust in our capability to lead such projects, a trust that we are proud of, as we are bringing innovative Sharia’a compliant funding instruments including private equity, sukuk and project financing to the market.’
Commenting on this project, Mr. Abdul Aziz Al Duleimi, Chairman of Gulf Petroleum Berhard, Malaysia, said: “This refinery shall enhance the link between the Middle East- GCC in particular- and Malaysia and Southeast Asia. An oil and petrochemical terminal shall be established between the GCC and Southeast Asia.”