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Petronas unit defers upgrade due to product price uncertainty

KUALA LUMPUR, Oct 10 (Reuters) - Malaysian state oil firm Petronas said on Wednesday a refining unit in the southern state of Melaka has deferred a planned upgrade of a lube base oil plant due to the uncertain outlook for product prices.

The refining unit, Petronas Penapisan (Melaka) Sdn Bhd, produces mostly Group III base oil, used to make automotive and industrial lubricants.

The retrofit would have increased production capacity, currently at about 270,000 tonnes a year, by around 15 percent by 2017, Petronas said in a statement.

(Reporting By Siva Sithraputhran; Editing by Richard Pullin)