DUBAI, May 25 (Reuters) - Saudi Aramco and Malaysia's Petronas said on Monday that Aramco will transfer its stake in Malaysia's Prefchem project to its partner Petronas, ending an eight-year partnership in the Southeast Asian refining and marketing sector.

The joint statement said the deal would make Prefchem a wholly owned subsidiary of Malaysian state energy company Petronas.

The financial terms of the deal have not yet been disclosed.

The deal underscores how the war with Iran is reshaping energy partnerships across Asia.

The de facto closure of the Strait of Hormuz since late February has reduced crude oil flows to the region, forcing refineries to cut production and causing shortages of jet fuel, gasoline and diesel, which are products of the Brefchem project.

Full ownership will give Petronas the flexibility to source crude oil from outside the Gulf region and direct production to meet growing regional demand for fuel, while Aramco has been forced to cut production due to the conflict.

Secondary sources from the Organization of the Petroleum Exporting Countries (OPEC) reported that Saudi production fell by about a third in April compared to pre-war levels.

Aramco supplied between 50 and 70 percent of the raw materials used by Prefchem.

The companies stated in the statement, "The deal was concluded on terms agreed upon by both parties, reflecting the changing strategic priorities of both."

The Prefchem project consists of two joint ventures, Pengerang Refining Company and Pengerang Petrochemical Company, which operate an integrated refinery and petrochemical complex within the Pengerang Integrated Complex in Johor, southern Malaysia.

The refinery has a capacity of about 300,000 barrels per day and produces various types of fuel, including jet fuel, gasoline and diesel, while it supplies the petrochemical complex with raw materials, which has a nominal production capacity of about 3.4 million tons per year.

In 2017, Aramco agreed to invest $7 billion to participate equally in the project, signing a share purchase agreement during King Salman's state visit to Malaysia. At the time, this was one of the company's largest overseas refining and marketing investments. The project was officially established in March 2018.

The two companies said they would continue to explore ways to cooperate, including in areas such as crude oil supply, technology exchange and product distribution.