Sinopec to delay start-up

Sinopec Group will delay the start-up of a US$1.2 billion refinery in Qingdao, east China by at least nine months, adding uncertainties to a joint-venture and oil supply deal with Saudi Arabia, industry sources told Reuters. The Chinese energy giant has yet to finalize a deal for state-run Saudi Aramco to take a stake in the project, or how much crude the world’s top oil exporter will sell to the plant. Currently, Sinopec Corp. and Sinopec Qingdao Refinery, a joint venture between Sinopec and the local government, own 85% and 15% of the refinery, respectively. The refinery, which is still under construction, has the capacity to process 200,000 barrels of crude oil per day. (August 2, 2007)