| Danial Norjidi |
BRUNEI Shell Petroleum Company Sdn Bhd (BSP) has signed a contract for the provision of the very first Integrated Oil Country Tubular Goods (OCTG) supply and local threading plant in the country.
The contract, signed yesterday between BSP, Nippon Steel & Sumitomo Metal Corporation (NSSMC) and Sumitomo Cor-poration at The Empire Hotel and Country Club, provides for mutual cooperation in a number of areas, including the supply of OCTG to BSP manufactured by NSSMC and the possible provision of related services, such as the rendering of local threading and supply chain management services in Brunei.
One of the project’s objectives is to in-crease local employment and enhance Brunei’s capabilities.
Signing for BSP yesterday was Technical Director Yap Kong Fah, while Toshihiko Kunishi, NSSMC’s Executive Officer, Vice Head of the Pipe & Tube Unit, and Shuichi Suzuki, Executive Officer and General Manager for Tubular Products Division of Sumitomo Corporation, signed for their respective companies.
Witnessing the signing ceremony was the Minister of Energy at the Prime Minister’s Office (PMO), Pehin Datu Singaman-teri Colonel (Rtd) Dato Seri Setia (Dr) Hj Mohammad Yasmin bin Hj Umar, as the guest of honour.
In his speech, the minister congratulated all the parties involved in the deal for their hard work and cooperation in bringing this important project to the Sultanate.
The plant, he said, will be built at the Salambigar Industrial Estate – an area developed by the government through the Brunei Economic Development Board (BEDB) with specialised projects, such as this one, in mind.
“From the perspective of the govern-ment, this project will not only bring in foreign direct investments (FDIs) but also equally important transfers of technology and knowledge from Japan, a nation well known for its technological advancements and innovation,” he said.
Whilst serving as an important milestone in the long history of economic ties between Brunei and Japan, he continued, the project also further satisfies the government’s vi-sion and strong commitment of bringing in FDIs that would contribute to diversifying the Sultanate’s economy.
“I believe that this project will serve as a very important catalyst in attracting and bringing in more would-be investors to come to Brunei Darussalam and to look closely at what the country has to offer in terms of facilities and opportunities, not only in activities that relate to oil and gas but also in other economic sectors,” he added.
Elaborating further in an interview with the Borneo Bulletin, Pehin Dato Seri Setia (Dr) Awg Hj Mohd Yasmin also noted that the deal is significant, as it potentially means around 200 new jobs for locals and could also make Brunei a hub supplying OCTG to the region.
BSP’s Technical Director also remarked to the Bulletin that “it (the project) really is a major, significant milestone in the history of oil and gas in Brunei”.
“BSP is really proud to be part of this because it symbolises the strong relation-ship between BSP, the government, Shell, NSSMC and Sumitomo Corporation to mature this business opportunity, which is crucial for the oil and gas industry in the country,” he said.
“We will generate not only lots of value to the company, but also have a huge spin-off from the local business development standpoint, creating many jobs locally.
“It will also attract foreign investment into Brunei and also, for the first time, the high-end technology is being transferred to Brunei,” he added.
“It means that OCTG goods can be ma-nufactured here, offering a one-stop shop and bringing a lot of efficiency. That’s why we are so proud of this milestone, because in the history of the oil and gas industry, this is the first of its kind.”
Meanwhile, NSSMC’s signatory Toshi-hiko Kunishi said, “Our relationship with Shell has been continuing more than 40 years now, since our first supply to BSP in 1972. It is our great honour to contribute to the further growth of Shell and the development of the economy in Brunei through this project.”
Shuichi Suzuki of Sumitomo Corporation added, “As a partner in the machine shop with NSSMC and operator in the supply chain management services, we are proud to contribute to the local de-velopment in Brunei Darussalam and en-hance our relationship with Brunei and Shell.”