• 45 mins Aramco In Talks With Chinese Petrochemical Producers
  • 2 hours Federal Judge Grants Go-Ahead On Keystone XL Lawsuit
  • 3 hours Maduro Names Chavez’ Cousin As Citgo Boss
  • 10 hours Bidding Action Heats Up In UK’s Continental Shelf
  • 15 hours Keystone Pipeline Restart Still Unknown
  • 19 hours UK Offers North Sea Oil Producers Tax Relief To Boost Investment
  • 21 hours Iraq Wants To Build Gas Pipeline To Kuwait In Blow To Shell
  • 23 hours Trader Trafigura Raises Share Of Oil Purchases From State Firms
  • 1 day German Energy Group Uniper Rejects $9B Finnish Takeover Bid
  • 1 day Total Could Lose Big If It Pulls Out Of South Pars Deal
  • 1 day Dakota Watchdog Warns It Could Revoke Keystone XL Approval
  • 2 days Oil Prices Rise After API Reports Major Crude Draw
  • 2 days Citgo President And 5 VPs Arrested On Embezzlement Charges
  • 2 days Gazprom Speaks Out Against OPEC Production Cut Extension
  • 2 days Statoil Looks To Lighter Oil To Boost Profitability
  • 2 days Oil Billionaire Becomes Wind Energy’s Top Influencer
  • 2 days Transneft Warns Urals Oil Quality Reaching Critical Levels
  • 2 days Whitefish Energy Suspends Work In Puerto Rico
  • 2 days U.S. Authorities Arrest Two On Major Energy Corruption Scheme
  • 3 days Thanksgiving Gas Prices At 3-Year High
  • 3 days Iraq’s Giant Majnoon Oilfield Attracts Attention Of Supermajors
  • 3 days South Iraq Oil Exports Close To Record High To Offset Kirkuk Drop
  • 3 days Iraqi Forces Find Mass Graves In Oil Wells Near Kirkuk
  • 3 days Chevron Joint Venture Signs $1.7B Oil, Gas Deal In Nigeria
  • 3 days Iraq Steps In To Offset Falling Venezuela Oil Production
  • 3 days ConocoPhillips Sets Price Ceiling For New Projects
  • 6 days Shell Oil Trading Head Steps Down After 29 Years
  • 6 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 6 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 6 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 6 days Venezuela Officially In Default
  • 6 days Iran Prepares To Export LNG To Boost Trade Relations
  • 6 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 6 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 7 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 7 days Rosneft Announces Completion Of World’s Longest Well
  • 7 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 7 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
  • 7 days Ecuador Seeks To Clear Schlumberger Debt By End-November
  • 7 days Santos Admits It Rejected $7.2B Takeover Bid

China-Built Brunei Oil Refinery To Launch In 2019

Refinery

A 160,000-bpd crude oil refinery that Chinese Hengyi is building in Brunei should start operating in 2019, source close to the project told Reuters. The refinery, worth US$3.4 billion, will supply feedstock to Hengyi – a major Chinese synthetic fiber manufacturer.

Besides feedstock for the Chinese company’s operations, however, the Brunei refinery will also produce fuels, which will turn it into a rival to Singapore – currently the biggest regional fuel producer.

Competition in fuels in Southeast Asia is about to intensify further as new refineries come online in Vietnam and Malaysia as well, Reuters notes. The Malaysia refinery, dubbed RAPID, on which state oil company Petronas is partnering with Saudi Aramco, is valued at US$7 billion. Aramco will supply 70 percent of the crude that the refinery will process, beginning in 2019, like the Brunei facility.

In Vietnam, the Nghi Son refinery, valued at US$7.5 billion with a capacity of 200,000 bpd, is scheduled to start operating next year, a delay from the initial launch date that was set for the third quarter of this year.

Hengyi’s Brunei project also ran into delays, which the Chinese company attributed to, among other things, problems with the local infrastructure. However, construction should be completed in 2018. The refinery will be the largest oil processing facility managed by a Chinese company abroad.

Brunei produced around 127,000 bpd of crude oil and 243,000 bpd of oil equivalent in gas as of October 2016. Plans are to boost this to a total 430,000 bpd this year. The tiny country is also a major exporter of LNG.

Brunei was no exception to the widespread economic depression among oil-dependent economies following the 2014 oil price crash, with the budget deficit for fiscal 2015/2016 hitting 15.4 percent of GDP. This should narrow to 13.1 percent in the current fiscal year.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News