Under the terms of the agreement, Petronas will acquire the stake in Malaysian Refining Company for $635m in cash with adjustment at completion.
Following completion of the transaction, scheduled on 31 December 2014, Petronas wholly will own the MRC.
Petronas Downstream chief operating officer and executive vice president and CEO Datuk Wan Zulkiflee Wan Ariffin said: "Our acquisition of Phillips 66’s interest in MRC will enable us to realise greater synergy between our refineries in Melaka and it will also strengthen our presence in the refining and trading businesses."
Phillips 66 Refining executive vice president Larry Ziemba said: "Phillips 66 is pleased with the agreement to sell its share of Malaysian Refining Company to PETRONAS.
"This divestiture allows us to redeploy resources to more strategic areas of our business. PETRONAS has been a strong partner over the years and we value our relationship."
Commissioned in 1998, the 170,000 barrels per day refinery is located in Melaka, Malaysia.
