South Korea's JV with Qatar Petroleum to be delayed by a year

09-Jan-09

The recent deterioration in demand has compelled South Korea's Honam Petrochemical Corp to delay by one year it's US$2.6 bln joint venture with Qatar Petroleum. The JV will now be completed by early 2013. Honam is to invest US$363 bln to acquire 30% stake in the project, with the balance share holding with Qatar Intermediate Industries Holdings Company Ltd, an affiliate of Qatar Petroleum. EPC (Engineering Procurement Construction) costs had been initially planned when oil prices were near US$150/barrel. WIth oil prices currently hoevring at 30% values of less than US$50, the JV will reasses EPC cost.