Business | Oil & Gas
Petronas will delay Sudan refinery plan
Malaysia's state oil company Petronas has deferred plans for a 100,000 barrel-per-day refinery to be built in Sudan because of rising costs, the company's CEO said on Monday.
- Reuters
- Published: 23:36 June 9, 2008
Kuala Lumpur: Malaysia's state oil company Petronas has deferred plans for a 100,000 barrel-per-day refinery to be built in Sudan because of rising costs, the company's CEO said on Monday.
Petronas, a major investor in Sudan where it has equity in the Nile Blend and Dar Blend oilfield developments, has been in discussions with Sudan to build a refinery there for three years.
"The cost environment has gone up so much. At this moment in time, we cannot justify the viability of the programme due to higher investment costs," Petronas CEO Hassan Marican told reporters at a news conference.
Equipment and labour shortages have pushed costs up globally in the energy sector, leading to several refining projects being delayed or cancelled.
An official from Sudanese state oil firm Sudapet said last month costs were now estimated at $5 billion, up from original estimates of $1-$2 billion.
Share this article
Popular in Business
-
XPRESS
Way to go this DSF
A fun-filled route to guide you to all the happening dos in town
Business Editor's choice
-
Hamdan opens interior design expo
Index 2009 will feature 1,000 exhibitors from 47 nations
-
Marina Residence handovers begin
Despite talk of oversupply, Palm Jumeirah's latest apartments come online.
-
Travel insurance offers peace of mind
The wisest thing to do is to take out travel insurance before you leave.
