Petronas cancels tender for billion-dollar project off Sarawak

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.