Home | News    Wednesday 28 May 2008

Costs delay Sudan refinery project eyed by Petronas


May 27, 2008 (DUBAI) — Soaring costs have delayed a refinery project in Sudan, which Malaysian state oil firm Petronas [PETR.UL] has been poised to win, an official from Sudanese state oil firm Sudapet said.

The planned 100,000 barrels per day oil refinery at Port Sudan is estimated to cost $5 billion, up from original estimates of between $1 billion to $2 billion.

"The issue is finance," said Salih Gaffar Mohamed, Sudapet’s general manager.

"The cost is getting higher and higher ... it has increased from about $2 billion to $ 5 billion from the first bid submission. It is in the process of being finalised," Mohamed told Reuters on the sidelines of an energy conference in Dubai.

Petronas, one of Sudan’s biggest oil producers, signed a deal in 2005 to invest in the refinery.

Sudan’s junior oil minister had said in India in January last year that construction had started and they hoped to complete the plant within two years.

Mohamed said Sudan’s largest refinery in Khartoum, which is undergoing major maintenance, would be fully operational by the end of June.

The newer part of the refinery was closed for maintenance in early May reducing capacity by half, industry sources and stakeholder CNPC said earlier this month.

Sudan, which has four refineries with a total capacity of 142,000 bpd, is producing between 500,000 to 470,000 bpd of crude oil, Mohamed said.


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  • 29 May 2008 13:39, by Ader M Ador

    Wondering why the increase in oil price does not affect the share that is given to the southern sudan.

    The NCP should be asked to account for this issues before the next budget is released to the GoSS.

    repondre message

    • 3 June 2008 14:53, by Atenymaker

      Oh dear me! what a huge estimated amount our treasure, which will by then be used in creating violance by NCP trrants for inhuman act to guinian. If you people just ease the life for sudanese citizent alike will there not be peace and co-exsistance amongst the sudanese rather than your deadly politics hooding money to yourselves???????

      Abyei oil that you are trying to dy for will turn into everlasting tears.
      I wish Abyeian became all geologist expert.
      Honesty, fainess, transprany are southeners adjectives in treasure.
      I beg our GOSS leaders to take that MINISTRY by any means from NCP.
      They just posts our money, kill us and bear us agony of later hope for no rights now less we suceed to be come..

      repondre message

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