KUALA LUMPUR: KNM GROUP BHD [] and ZECON BHD [] have yet to finalise the agreement and financing for the RM15 billion petroleum refinery and polypropylene unit projects in Teluk Ramunia, Johor, with Gulf Asian Petroleum Sdn Bhd.

The two companies said on Friday, Oct 28 said the heads of agreements were signed on July 26, 2011 but they had 'yet to achieve financial close for the refinery/polypropylene project and the storage project'.

To recap, the first agreement was to undertake the engineering, procurement, CONSTRUCTION [] and commissioning (EPCC) contract of the 150,000/200,000 barrels per day (bpd) petroleum refinery and 400,000/525,000 million tonnes per annum (mtpa) polypropylene unit for Gulf Asian Petroleum.

The second was to undertake the EPCC contract for the petroleum product storage terminal'' comprising four terminals with a total storage capacity of 2.328 million cubic meters, complete with supporting infrastructure and auxiliaries including the jetty.

Gulf Asian Petroleum is owned 50% by Mubadala Capital Sdn Bhd and 50% by Abdul Aziz Hamad Al-Delaimi. It was established to build and operate an integrated petroleum complex comprising of the refinery and storage projects at Teluk Ramunia.

However, on Friday, KNM and Zecon said they would continue to pursue to finalise the EPCC contract, consortium agreement, shareholders agreement and financing for the projects.