Brunei Shell Petroleum Company Sdn Bhd (BSP) and Brunei Shell Marketing Company Sdn Bhd (BSM) inked their respective commercial agreements with Hengyi Industries Sdn Bhd yesterday, signalling Brunei Darussalam’s fuels shifting to a more advanced and environmentally-friendly specification in 2020.
The signing of the BSP and BSM commercial agreements with Hengyi for the supply of crude oil and fuel products for the domestic market of Brunei Darussalam was held at the Empire Hotel & Country Club, where the guest of honour was Minister at the Prime Minister’s Office and Minister of Finance and Economy Il Dato Seri Setia Dr Awang Haji Mohd Amin Liew bin Abdullah.
BSP Commercial Director Hajah Farida binti Dato Seri Paduka Haji Talib underscored that the signing of the commercial agreements “takes Brunei Darussalam’s energy industry a huge step forward towards diversifying its energy sector and export product mix, while creating a presence in global products market following an already established crude marketing reputation.
“Following the Brunei Fertilizer Industries Sdn Bhd (BFI) signing earlier in July this year, [this] will be another opportunity for BSP and BSM to jointly contribute to the strategic objective of the Brunei government in developing robust and dynamic downstream industries, by extending the value chain and domestic footprint of its energy sector, and in doing so, capturing as much in-country value as possible.”
She further added that through these agreements, “BSP and BSM will not only meet Bruneian products and crude demand, but also support downstream retail and industrial development to enable significant economic benefits and improvements within the domestic oil and gas value chain.”
“This is also part of BSP’s intent towards fuelling Brunei’s future, while transitioning towards cleaner and better energy alternatives. Furthermore, this will also allow BSM to maximise further value for Brunei through the maturation of new business opportunities.”
Congratulating the manage-ment and working teams from BSP, BSM and Hengyi for “their strong level of focus, collaboration and resilience in working together to reach alignment and deliver the commercial agreements”, the BSP Commercial Director also said that they looked forward to building a strong, collaborative partnership with Hengyi Industries for decades to come, in fuelling Brunei’s future.
The agreements will allow for improvements within the domestic oil and gas value chain, with BSP supplying crude oil to the Hengyi Refinery, which in turn will provide refined fuel products to BSM for distribution to the Bruneian market, in order to meet the demand for domestic products, support downstream retail and industrial development in Brunei Darussalam, and enable significant associated economic benefits.
The signing of the commercial agreements among the three companies is part of wider efforts by the Brunei Government to achieve the aims of Brunei Vision 2035, in vitalising and diversifying the economy by developing capabilities in export-oriented downstream industries, thus extending the value chain of the energy sector. The company representatives at the signing ceremony were Acting Managing Director of BSP Yap Kong Fah, Managing Director of BSM Pengiran Shamhary bin Pengiran Dato Paduka Haji Mustapha and Chief Executive Director of Hengyi Chen Lian Cai.
Deputy Minister of Energy, Manpower and Industry Dato Seri Paduka Awang Haji Matsatejo bin Sokiaw, as well as senior government officials and other guests were also present.