Sudan, Petronas planning Red Sea refinery

Sept. 2, 2005
The Sudanese government has awarded Malaysia's Petroliam Nasional Bhd. (Petronas) a contract estimated at $1 billion to build a 100,000 b/d export refinery at Port Sudan on the Red Sea coast.

By Eric Watkins
Senior Correspondent

LOS ANGELES, Sept. 2 -- The Sudanese government has awarded Malaysia's Petroliam Nasional Bhd. (Petronas) a contract estimated at $1 billion to build a 100,000 b/d export refinery at Port Sudan on the Red Sea coast.

Petronas and Sudan's Ministry of Energy and Mining will jointly invest, develop, and operate the facility, to be fully operational by early 2009. Petronas International Corp. Ltd. has 50% interest, and the ministry has 50%.

The refinery will be designed to process high acid crude that will add value to the Dar Blend from Sudan's Melut basin Blocks 3 and 7, said Petronas, which has 40% interest in those blocks.

The refinery is expected to help meet growing demand for products in Sudan and neighboring countries, Petronas said.