Mitsui withdraws from Cilacap RCC project

Mitsui & Co. Ltd. has decided to withdraw from participation in the residual catalytic cracking (RCC) project in Cilacap, Central Java, on investment cut disagreement. Mitsui did not agree with the cut in the cost of the project which would process oil residue to turn out high octane gasoline and liquefied natural gas, source at state oil and gas company PT Pertamina said. The project was earlier estimated to cost US$1.5-1.7 billion, but Pertamina’s board of commission wanted to cut the cost to US$1.1 billion, the unnamed official told the newspaper Investor Daily. Construction of the project has been delayed since late 2008, which was originally scheduled to be completed in 2011. (November 8, 2009)