/ 2 May 1999

PETRONAS PLAN ‘IMPOSSIBLE’

PETRONAS’ plans to ship crude oil from its fields in the Sudan to an affiliated Engen refinery in Durban have been slated by industry ananlysts. While concurring that the new fields will produce about 150000 barrels per day, observers suggest that ongoing unrest in the Sudan will make transport difficult. The Sudan is landlocked, an the civil war there will make shipment of large amounts of oil uncertain. Petronas responded that the proce of oil will determine how profitable use of the Durban refinery will be for any Sudanese oil.