Petronas may defer projects including US$19 bln petrochemicals complex, as lower crude trimmed profit growth

27-Aug-13

Malaysia's state energy firm Petronas plans to defer some existing projects, including a US$19 bln petrochemicals complex, as it seeks to contain costs after lower crude oil prices trimmed profit growth, as per its CEO. About 65% of its income is from its oil and gas exploration business, but recent weaker oil prices offset most of the gains from a 12% increase in overall production during the quarter. Rising project costs are a source of concern, and this may prompt the company to review some strategic projects. Petronas will make a final investment decision on the project in March 2014, and if it is approved, the refinery in the petrochemicals complex will be ready to start up in Q4-2017. The rest of the plants will be commissioned in 2018.