Petronas said it would be delaying the start-up of its $16billion RAPID refining and petrochemical complex in Malaysia until mid-2019.
The move will push the project back from earlier that year.
The decline in oil price has led to a review by Petronas looking at some of its engineering, procurement and construction contracts.
Chief Executive Wan Zulkiflee Wan Ariffin said: “For the refinery, the start up will be middle of 2019. That is the current schedule.
“Commodity prices went down – it was a good time for us to go into the market for EPC contracts. We did some rebidding to get better prices.
“We’ve taken the decision that some of the chains in the petchem will be rephased. Basically, some of the chains, like the phenolic chains, will come later.”
The $16billion refinery and petrochemical integrated development was initially poised to start operations by early 2019.
It will consist of a 300,000 barrels-per-day refinery and petrochemical complex with a combine chemical output of 7.7million metric tons per year of various projects.
In the fourth quarter of last year, Petronas posted a loss of $2.03billion, marking its first loss in at least five years.