Business | Oil & Gas
Channel Sponsor
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
-
Budget travel
Airlines in the region
Take a pictorial look at some of the budget airlines in GCC
Business Editor's choice
-
Cafe Nero's premium coffee blends
UK chain plans to open 50 outlets in region following UAE launch
-
Emirates to fly direct to Tokyo
Airline considers code-share deal with JAL after adding second destination in Japan
-
Work on world's longest sea crossing
The proposed Qatar-Bahrain causeway project is estimated to cost Dh9.9 billion
