Malaysia assessing bids for Sudan refinery project

June 11, 2007 (KUALA LUMPUR) — National oil firm Petronas said it is assessing engineering bids with its counterpart in Sudan to build a refinery for high-quality petroleum products.

Petronas chief executive officer Mohd Hassan Merican said the refinery project at Port Sudan ‘was still going on’ and that it will have the capacity to process 150,000 barrels per day.

‘The Port of Sudan joint-venture refinery project is … entering a new phase,’ Hassan told reporters on the sidelines of the two-day Asia Oil and Gas Conference in Kuala Lumpur.

‘A decision will be made once we have reviewed all the bids,’ he said.

Petronas acquired a 50 pct stake in the refinery project in 2005 through its unit Petronas International Corp Ltd. The remaining stake is held by Sudan’s Ministry of Energy and Mining.

Under the tie-up, Petronas and its partner will jointly invest in, develop and operate the export-oriented refinery at Sudan’s only entry port.

The refinery is designed to process high acid crude from Blocks 3 and 7 of the Sudan Melut Basin, where Petronas already has a 40 pct interest, and is expected to be operational by 2009, Petronas said.

Petronas also holds a 35 pct stake in an offshore oil and gas project in an area known as Block 15 in the Red Sea Basin in Sudan.

(XFN-ASIA)