Petronas to delay Sudanese refinery due to costs

Conferences

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.

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 program due to higher investment costs," Petronas CEO Hassan Marican told reporters at a news conference.

Marican declined to set a date for when construction on the refinery might begin.

Equipment and labor 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 between $1 billion and $2 billion.

Petronas signed a deal in August 2005 to invest in the refinery, which would process some of the the hard-to-sell, high acidic Dar Blend crude. (Reuters)

ADVERTISEMENT

Farm, food industry confidence improves slightly in Q2 Analysis

Farm, food industry confidence improves slightly in Q2

Meeting called to address Pegasus spyware lacks quorum  Parliament

Meeting called to address Pegasus spyware lacks quorum 

Skanska commercial dev unit names new EVP of operations Hung... Appointments

Skanska commercial dev unit names new EVP of operations Hung...

Zsa Zsa Gabor's ashes buried in Budapest City

Zsa Zsa Gabor's ashes buried in Budapest

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.