The Kedah state government will set up a team to study the feasibility of restarting the oil and gas project in Yan suspended during Tan Sri Azizan Abdul Razak's stewardship.

Menteri Besar Datuk Paduka Mukhriz Tun Mahathir said although the project is a state target, it is not needed for the time being and the state is in no rush to re-start it.

"The project has not started, it cannot be done immediately as a lot of proceses are involved," he told reporters on the sidelines of a memorandum of agreement signing between Langkawi Development Authority and Pekan Artisan Sdn Bhd.

He said the state has already identified several parties interested in restarting the project.

"We are still at the planning stage, we will definitely make an announcement once the project can be restarted," he said.

In the last general election, the Kedah Barisan Nasional said in its manifesto it would recontinue the Sungai Limau Hydrocarbon Hub project, previously known as the Yan Petroleum Industrial Zone. It was planned by the Barisan Nasional in 2007.

The former Menteri Besar, Azizan, however, suspended the project due to the appointed developer's financial and technical problems.