Kuala Lumpur, Feb. 28 (Xinhua) -- Saudi Aramco and Petronas, the two national oil companies from Saudi Arabia and Malaysia respectively, entered into a 50-50 partnership on Tuesday.

Saudi Aramco will invest 7 billion U.S. dollars in a refinery in the southern Malaysian state of Johor, called Refinery and Petrochemical Integrated Development, or RAPID.

According to a joint statement released after a signing ceremony, both partners will hold equal ownership in selected ventures and assets of the RAPID project within the Pengerang Integrated Complex, upon the completion of the transaction, subject to regulatory approvals and the completion of other associated agreements.

Under the partnership, Saudi Aramco will supply up to 70 percent of the crude feedstock requirements of the refinery, with natural gas, power and other utilities supplied by Petronas, it said.

With capacity to refine 300,000 barrels of crude per day, RAPID's refinery will produce a host of refined petroleum products, including gasoline and diesel as well as feedstock for its integrated petrochemical complex producing 3.5 million tonnes per annum of products, said the statement