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Petronas cancels tender for billion-dollar project off Sarawak

Sustained dive in oil prices seen forcing Malaysian oil giant to slash as much as RM16b in capex

Published Tue, Dec 15, 2015 · 09:50 PM

Singapore

PETRONAS has called off the tender for a key contract tied to the multi-billion Kasawari gas field development in Block SK316 off Sarawak, as Brent crude slipped under US$38 for the first time since 2008, challenging the economic viability of a project lined up during US$100 oil prices.

The tender cancellation also spells the possible deferment of two other billion-dollar gas projects, which were planned to be tied back to the Kasawari field development.

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