Saturday, August 4, 2007

Chinese-Saudi Deal in Doubt

China's Sinopec Group is to delay the scheduled launch of a $1.2bn refinery in Qingdao by at least nine months to September 2008, or later, reported Reuters. Saudi Aramco's future involvement as part of a joint venture and as a supplier of crude has been described as 'not certain' by a source close to the deal. Aramco was planning to acquire up to 25% of the 200,000 barrels per day refinery.

From AME Info

...One reason for the delay, the source said, was that Sinopec's new chairman, Su Shulin, wants to ensure the project meets tighter environmental standards as it is situated near the sailing site for the Olympics next August.

A second source, who put the delay to end of next year, linked the move to the sudden resignation in June of former chairman Chen Tonghai, an industry veteran Chinese media said was under investigation for alleged graft.

From the Gulf Daily News