Abdullah ibn Abdulaziz al Saud

Saudi Aramco inks $7 billion deal for Malaysian oil venture

Oil giant Saudi Aramco signed a $7 billion deal Tuesday to take a 50 percent stake in a mega Malaysian oil refinery project, in a pact expected to help Saudi Arabia increase trade in Southeast Asia.

Aramco inked the agreement with Malaysia's national oil company Petronas, which is developing a $27 billion oil processing hub in southern Johor state bordering Singapore.

It includes a refinery with the capacity to churn out 300,000 barrels of oil a day, a cracker plant and a petrochemical complex with an annual production capacity of 7.7 million metric tons. Officials have said the deal will make Aramco the single largest investor in Malaysia.

Saudi Arabia is the world's...