Hengyuan, Shell Ink Term Sheet To Extend Offtake Agreement For 10-year Tenure

KUALA LUMPUR, Sept 7 (Bernama) -- Hengyuan Refining Company Bhd (HRC) has entered into a binding term sheet with Shell Malaysia Trading Sdn Bhd (SMT) and Shell Timur Sdn Bhd (STSB) (collectively, Shell) for the renewal of the long-term product offtake agreement for a 10-year tenure. 

HRC said the renewal is intended to continue the long-standing product offtake arrangement between HRC and Shell from Jan 1, 2027 to Dec 31, 2036. 

The deal will run for an initial term of five years and a further five-year renewal term subject to mutual agreement of the parties. 

“The term sheet sets out the principal commercial terms and provides the framework for the negotiation and execution of the definitive product offtake agreement. 

“The arrangement is expected to support the continued placement of HRC's refinery products and the stability of its refinery operations,” it said in a stock exchange filing.  

-- BERNAMA