Saudi PetroRabigh says development delay to boost undertaking value

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Saudi Arabian petrochemical firm PetroRabigh stated on Thursday it will once more delay completion of an enlargement challenge, elevating the price of the challenge to 34 billion riyals ($9.1 billion).

Completion might be postponed by a minimum of six months to the second quarter of subsequent yr due to “development market challenges”, stated PetroRabigh, a three way partnership between nationwide oil big Saudi Aramco and Sumitomo Chemical.

It didn’t elaborate, however the Saudi development business has been hit arduous up to now yr by delays in authorities funds as a result of low oil costs. This has strained builders’ funds and made it exhausting for them to pay suppliers and staff.

Beneath PetroRabigh’s Part II enlargement, an present ethane cracker shall be expanded and a brand new aromatics complicated might be constructed to course of greater than 2.7 million tonnes of naphtha a yr into larger-worth petrochemical merchandise.

The expanded facility was initially anticipated to start out manufacturing within the first half of 2016. However final Dec. 31, PetroRabigh stated it might delay completion by 9 months as a result of “the failure of the important thing contractors of the undertaking to satisfy the deliberate implementation schedule”, elevating the estimated challenge value by 1 billion riyals to 31 billion riyals.

The publish Saudi PetroRabigh says development delay to boost venture value appeared first on Gulf Retail.

Supply: Press Launch

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