As the country works towards achieving Brunei Vision 2035, each sector in Brunei Darussalam has a significant role to fulfill. This includes the energy sector, particularly the oil and gas industry, which has contributed tremendously to the country’s growth over the past nine decades.
The Ministry of Energy, Manpower and Industry was renamed and restructured to Ministry of Energy on November 18, 2019 to focus on energy matters.
The 15th Legislative Council (LegCo) session was held in March 2019. During the session, Minister of Energy Dato Seri Setia Dr Awang Haji Mat Suny bin Haji Mohd Hussein provided several statistics related to the production of oil, natural gas and methanol in the country.
In 2018, the domestic oil production was 111,500 barrels per day, whereas the production of natural gas was 234,400 barrels per day. Most of the natural gas was exported as liquefied natural gas (LNG). Meanwhile, the production of methanol in 2018 was 7.28 million tonnes per day.
The minister said new oil and gas field development activities are being upgraded for production in the coming years. Also included is the development of several oil and gas fields in the deep waters that will generate new opportunities in the country’s energy sector.
The new oil and gas development is expected to boost the oil and gas production by 30 per cent over the next five years. In addition, a minimum of five exploration wells were planned to be drilled in 2019, including two which could identify potential new areas.
In November 2019, the Minister of Energy conducted a dialogue session with LegCo members. He said that the ministry will focus on the regulation and management of the country’s hydrocarbon. The ministry will maximise the sustainable development of the downstream sector and other industry sectors to combat the turbulent oil prices.
Following the slight recovery of the oil prices in 2019, the minister said Brunei must be cautious in the use and management of its hydrocarbon resources. As the regulator of the oil and gas sector, the minister stressed on the increase of exploration activities in 2019 to boost hydrocarbon resources and the production of oil and gas to reap the benefits of rising oil prices.
With nearly 90 years’ experience in the oil and gas industry, Brunei has developed significant expertise and strength, particularly in the upstream sector and LNG. In comparison, the sector’s downstream industries are in their early stages in terms of development and maturity. In 2010, a methanol plant was commissioned and started exporting its products within the region.
Several huge downstream oil and gas projects are due to commence operations in 2020. This includes the Pulau Muara Besar oil refinery and petrochemical plant, which has the capacity to process 175,000 barrels of crude oil per day.
During the dialogue session with LegCo members in November 2019, the Minister of Energy said that several fuels have started on trial production such as diesel, jet A-1, gasoline and liquefied petroleum gas, with a small amount exported to neighbouring countries.
Another major foreign direct investment (FDI) is the Brunei Fertilizer Industries Sdn Bhd (BFI). The ammonia and urea plant is expected to start operations in 2021 and will contribute to the country’s economy.
Brunei’s current target for downstream economic output is to achieve BND5 billion per year by 2035. The country welcomes FDIs in the downstream sector, particularly in areas related to methanol, ammonia and urea. These three products can be produced in Brunei and used as feedstock to manufacture derivatives such as methylamine, formaldehyde, and polyoxymethylene (POM) which can promote opportunities in the manufacturing of woodbased products, tableware, plastics, textiles and other items.
The downstream industries will be further developed to generate economic growth, create employment for locals and spur other spinoff industries. To support the development of downstream industries, two dedicated industrial sites have been allocated and reserved, namely Sungai Liang Industrial Park (SPARK) and Pulau Muara Besar (PMB) Industrial Park.
These sites provide new projects the benefit of proximity to existing and future petrochemical plants so as to achieve cross-industry synergy and optimise logistical efficiency.
The Brunei Energy Industry Integrity Pact was established in 2017 with 10 founding members made up of established oil and gas companies in Brunei. The oil and gas companies are Brunei Shell Petroleum, Brunei LNG, Brunei Shell Marketing, Brunei Gas Carriers, Hengyi Industries, Shell Deepwater Borneo, PetroleumBRUNEI, Brunei Methanol Company, Petronas Carigali Brunei and Total E&P Borneo BV.
In 2018, 32 companies joined the pact. The anti-corruption network was further strengthened when 22 companies were added to the pact in 2019.
The pact contains 10 essential principles that companies shall incorporate into their ways of working to ensure appropriate internal controls are in place to assess, prevent, detect and monitor integrity and compliance risks in the course of their operations.
By agreeing to the pact, the industry conveys its zero-tolerance message that any company lacking integrity and transparency will not have the opportunity to do business with any of the oil and gas operators in Brunei.
As Brunei’s main country revenue comes from the energy industry, the group aims to collectively ensure that transparency, fairness and integrity remain at the forefront of the industry’s business dealings.
Over the next 10 years from 2019 to 2029, Brunei’s demand for power is expected to increase three per cent per annum from 3,900 gigawatt hours (GWh) to 5,300 Gigawatt hours (GWh). The rise in power demand is due to the current and upcoming key national projects and developments in the pipeline, said Minister of Energy Dato Seri Setia Dr Awang Haji Mat Suny bin Haji Mohd Hussein at the closing ceremony for the 7th Green Leaders Camp in 2019.
On October 29, 2019 at the Singapore Energy Summit, the minister said that Brunei is continuously taking steps to ensure the supply of reliable and affordable power to meet the national electricity needs. Future key shifts include the adoption of a cleaner, modern power grid driven by technology advancements.
The minister also said that diverse energy sources are needed to manage the rising global need for electricity, driven by industrial and economic activities, transportation needs, and population growth. At the same time, it is important to balance growth with sustainability, affordability and reliability of supply in the long term.
In its effort to enhance the efficiency and reliability of electricity supply, the government is investing to upgrade electricity infrastructure throughout the nation. Meanwhile, the developments in renewable energy have made it more feasible to develop solutions for residents away from the main power grid, particularly in the rural areas of the Belait District.
The ministry also explores the rollout of solar power initiatives on a larger scale. Incorporation of renewable energy into a more diversified energy mix will contribute to the conservation of hydrocarbon reserves.
As one of the cleanest fossil fuels in the market at present, natural gas will continue to play an important role to ensure reliability of supply throughout the global energy transition.
The construction of the Advanced Hydrogen Energy Chain Association for Technology Development’s (AHEAD) hydrogenation demo plant began in April 2018. The plant was completed in September 2019 and officially opened on November 27, 2019.
During the plant opening ceremony, the Minister of Energy said that Brunei will supply over 200 metric tonnes of hydrogen to Japan in 2020. The plant is operated and managed by a consortium of Japanese companies and represents the first global supply chain of hydrogen from Brunei to Japan.
The plant produces hydrogen from natural gas via steam reformation processes and uses various technologies to ensure the safe transport of the liquefied hydrogen over a long distance. President of AHEAD Hideki Endo said the first export of hydrogen from Muara Port to Japan was held on November 17, 2019. Operations were scheduled to continue for approximately one year. The exported hydrogen will be used as fuel for gas turbine power generator at the Toa Oil Company in Kawasaki City, Japan.
Ambassador of Japan to Brunei Eiji Yamamoto lauded the collaboration between the two nations as a symbol of contribution towards diversifying Brunei’s economy. He said that the project also serves to mitigate the effects of climate change, in line with the Paris Agreement to reduce greenhouse gas emissions.
The hydrogen project is funded by the New Energy and Industrial Technology Development Organisation (NEDO) and serves to demonstrate the viability of a hydrogen supply chain using the organic chemical hydride method.
One of the key factors in the success of the project is the transportation of the hydrogen supply from Brunei to Japan, over a distance of 5,000km. The transportation is made possible by Chiyoda’s SPERA Hydrogen technology in converting hydrogen to a liquid at ambient temperatures and pressure.
The hydrogen project began as part of Phase II of the ‘Strategic Road Map for Hydrogen and Fuel Cells’ issued by Japan’s Ministry of Economy, Trade and Industry (METI) in 2014. The project was revised in 2016 to help realise the Global Hydrogen Transport and Supply Technology for a full-scale hydrogen power generation around 2030.
In August 2017, an agreement was signed between Brunei Fertilizer Industries Sdn Bhd (BFI) and ThyssenKrupp Industrial Solutions AG (tkIS) to set up Brunei’s first fertiliser plant. Located at Sungai Liang Industrial Park (SPARK), the plant will use the country’s abundant natural gas reserves to produce fertiliser and develop its petrochemical industry downstream activities.
The groundbreaking ceremony took place in 2018. Since then, tkIS has been lending their expertise in construction and engineering to fully realise the project, with the plant slated to be operational in 2021.
Ralf Richmann, CEO of the Fertilizer and Syngas Technologies Business Unit at tkIS, said that the fertiliser project is the start of a new era of sustainable fertiliser production in the country. Brunei’s position as one of the largest producers and exporters of natural gas will help the facility operate efficiently.
Richmann also commended Brunei for the country’s commitment to innovation and efforts in continuously promoting, adopting and implementing new technologies. He highlighted the government’s efforts in developing new economic opportunities and creating better employment opportunities for its people.
Once completed, the BFI fertiliser plant is estimated to create 350 employment opportunities and will have the capacity to produce 2,200 tonnes of ammonia per day. The ammonia will then be used as feedstock to produce 3,900 tonnes of urea per day, of which the majority will be exported to the region. The urea will also be made available to local farmers and enterprises in the agriculture sector.
The ammonia and urea produced from BFI will be able to create further downstream opportunities, such as for the production of urea formaldehyde and melamine. These byproducts also present potential for spin-off industries such as in the manufacturing of fibre board, wood furniture and tableware.
Furthermore, the fertiliser plant will complement other existing oil and gas downstream projects such as Brunei Methanol Company and the Hengyi Industries refinery. The plant is expected to catalyse spin-off opportunities for businesses such as logistics and specialised plant services.
With the total investment value of BND1.8 billion, BFI will enable the country to create further value to its natural gas resources by developing downstream industries in the oil and gas sector beyond the existing production of liquefied natural gas and methanol.
To ensure the constant supply of natural gas to the BFI fertiliser plant over the next 20 years, an agreement was signed between Permai Holdings, BFI and Brunei Shell Petroleum Co Sdn Bhd (BSP) in July 2019. Under the agreement, BSP will supply 0.5 trillion cubic feet of natural gas to BFI over the next two decades.
A partnership between Air Liquide of France and QAF Brunei, Brunei Oxygen (Brunox) is the Sultanate’s main supply of industrial gases. Brunox serves a wide array of customers including airlines, oil and gas contractors, hospitals, construction sites, hotels, laboratories and agrifood industries, to name a few.
In addition to producing industrial gases, Brunox also offers fabrication, installation and commissioning of gas pipeline systems; gasrelated onshore and offshore services (pipeline purging and leak testing); welding and cutting gases, consumables and equipment; training and management programmes; and onsite gas management. Brunox offers the highest standard of quality in technical support and expertise on industrial and medical gas related applications.
In August 2018, Brunox launched the first air separation plant in Brunei, the result of a long and fruitful collaboration between QAF Brunei and Air Liquide. The plant produces liquid nitrogen, oxygen and argon catering to local market demand. The products will also be exported to neighbouring Malaysian states like Sabah and Sarawak.
Established in 1954 and headquartered in Japan, Mitsubishi Corporation (MC) is a global integrated business enterprise. MC develops and operates businesses together with its offices and subsidiaries in approximately 90 countries and regions worldwide, as well as a global network of around 1,400 group companies.
MC’s expansive network enables the company to access numerous different industries on a global basis. Thus, MC adopts a holistic view across numerous industries, constantly seizing new business opportunities.
MC has 10 business groups that operate across virtually every industry: Natural Gas, Industrial Materials, Petroleum and Chemicals, Mineral Resources, Industrial Infrastructure, Automotive and Mobility, Food Industry, Consumer Industry, Power Solution and Urban Development.
Through these 10 business groups, MC’s current activities have expanded far beyond its traditional trading operations to include project development, production and manufacturing operations. MC works in collaboration with its trusted partners around the globe.
Since the late 1960s, MC has participated in various LNG projects in countries such as Brunei Darussalam, Malaysia and Indonesia. In recent years, MC further expanded its footprint by taking part in shale gas development in Canada, LNG export business in the United States and LNG marketing activities through its subsidiary in Singapore.
As a shareholder of Brunei LNG, MC has been involved in the LNG business since the first LNG cargo delivery from Brunei to Japan. Over the past 50 years, Brunei has been supplying energy for Japan in the form of LNG, strengthening the ties between the two countries.
With a global workforce of over 70,000 professionals, the company’s greatest asset is its people. As its operations continue to diversify, MC strives to empower and develop its workforce. The company aims to create a working environment where its people can flourish and grow together, regardless of differences in gender, culture, values or nationality.
Moving forward with an unwavering commitment to conducting business with integrity and fairness, MC remains fully dedicated to growing its businesses while contributing to a prosperous society.
Since the discovery of the Seria field in 1929, Brunei Darussalam has forged an enduring partnership with Royal Dutch Shell, a relationship that reaches back more than nine decades.
From its humble beginnings, Brunei Shell Petroleum (BSP) is now the largest oil and gas company in the Sultanate, boasting a diverse and highly qualified workforce of around 4,000 employees and more than 20,000 contractors. To this day, BSP remains as the backbone of Brunei’s economy and a major contributor to the nation’s oil & gas revenue and export earnings, supporting the growth and development of the country.
BSP’s core activities include exploring for, and producing, oil and gas from onshore and offshore fields for domestic use and export to international markets. These operations are supported by skilled professionals working in functions ranging from technically-minded Petrophysicists and Petroleum Engineers through to more corporate staff in Legal, Contracting and Procurement to Aviation and Marine specialists.
With the support of its shareholders, BSP is pursuing a growth agenda to enable the company to continue powering Brunei’s future for generations to come.
Part of this future growth journey is drawing out a plan to unlock hydrocarbons, a collective term used for oil and gas. A dedicated integrated team from various functions is tasked to develop and drive the BSP Hydrocarbon Maturation Roadmap. Their dedication over the past few years recently gained international recognition, as the Hydrocarbon Maturation Roadmap team was selected as one of the winners for the Shell Upstream Impact Awards, from a pool of nearly 300 nominations spanning 21 countries. The award recognises the team’s efforts in securing a sustainable future for BSP and Brunei.
Such future growth also means that BSP can diversify its customer portfolio and will secure future buyers of its products. Last year, BSP signed new key commercial agreements to supply natural gas to Brunei Fertilizer Industry (BFI) Ammonia/Urea Plant and to provide crude oil to Hengyi refinery, marking partnerships with new key players in the domestic industrial space. These partnerships further strengthen BSP’s commercial portfolio and its reputation as a reliable hydrocarbon supplier within the region and beyond.
BSP’s continued success has been ensured as a result of several “Made In Brunei” innovations, ideas developed and implemented, many for the first time anywhere in the world, in dozens of fields within Brunei. BSP’s engineers have consistently invented new drilling techniques to access some of Brunei’s most complicated underground reservoirs, and continued success in this area is testament to BSP’s persistent innovation.
When the Champion West field was discovered in 1975, there were hundreds of small oil and gas accumulations in thin reservoirs which made it difficult and uneconomic to develop at the time, leaving it to lie dormant for 25 years.
Today, Champion West is an example of BSP’s leadership in two key technologies: “snake wells” and “smart fields”, which have now become an industry benchmark. The snake well design created in 2001 by BSP provided a solution to improve reservoir access: the well was designed to weave to several pockets of oil and gas that would otherwise be uneconomic to access individually, reducing cost and ensuring no hydrocarbon accumulations are overlooked.
As BSP is embarking on a new growth journey over the coming decades, it is crucial to develop new approaches to exploration. Currently, BSP is deploying another exciting new “technological first” for the country, the Intan Ocean Bottom Node (OBN) seismic survey, one of the largest and densest OBN surveys Shell has undertaken globally. Accordingly dubbed the Intan (Malay for diamond) OBN survey, this state-of-the-art technology generates a 3D representation of complex subsurface features at an unprecedented level of clarity and detail.
Leveraging off a two-year geological review that highlighted as yet potentially untapped hydrocarbons in offshore East Brunei, such new technology will increase the accuracy of BSP’s subsurface knowledge, allowing for safer exploration drilling and the targeting of deeper, more elusive hydrocarbon deposits.
Conventional offshore seismic surveys require a vessel towing up to 3km of streamers lined with hydrophones (listening devices) to record reflections of seismic waves created by an underwater seismic source echoing back from the Earth’s layers below. The OBN survey method instead deploys listening devices (known as nodes) directly onto the sea floor itself, producing more detailed data which will lead to identification of complex hydrocarbon traps around existing fields while also unlocking new, deeper drilling targets in frontier areas.
Another advantage of this method is the elimination of the physical constraints associated with towing long lines of streamers around the vicinity of busy operational offshore infrastructure. This allows for safer access closer to such facilities, as well as sensitive marine areas, and shallow waters.
The project will take about six months which is equivalent to two billion ‘work-seconds’ carried out by over 500 offshore employees, resulting in the acquisition of almost a Petabyte (1,000,000 GB) of raw seismic data in an area that has more than 100 operational facilities.
The project is not just about technology and data; it is also an opportunity to develop local capabilities and skillsets. BGP Inc., who won the tender to conduct the survey, has already recruited 27 talented Bruneian technical professionals to work alongside international seismic experts for rapid, on-the-job transfer of knowledge. This is an excellent opportunity for Bruneians to be directly involved and work in a complex and technologically-challenging project.
To fully benefit from the huge volumes of highresolution data generated, BSP invested in a cuttingedge seismic interpretation system. The software can sort through large volumes of seismic data in hours when it could take weeks or months for a person to do the same task. Two Bruneian “early adopters” were sent to Houston, Texas, to receive training for the system to become operational in BSP end of 2019. This will also inspire the team to use novel digitalisation techniques, furthering BSP’s growth journey and securing the talent pipeline for BSP through capability building.
This is similar to the Rasau 3D Seismic project, one of the most advanced and largest onshore surveys BSP has undertaken in more than 20 years, that ultimately unlocked previously unknown onshore Intan Ocean Bottom Node (OBN) Seismic Survey: source maintenace onboard vessel Argus 2 gas reserves in 2014. Thanks to Rasau’s seismic data BSP drilled the Layang-Layang discovery in 2017, marking BSP’s first significant discovery onshore in 37 years. The Layang-Layang well lies within the Seria Field.
BSP is a pioneer in innovative technologies and over the past few years, the company is increasingly moving towards innovative digital technologies. Today, BSP is currently undergoing a digital transformation journey in which key priorities are on delivering value from digital solutions and building in-house capabilities. The growing shift is attributed to the increasing accessibility of digital technologies (in terms of costs and time to develop) as well as BSP’s growing maturity in this space.
Digitalisation brings greater efficiency and effectiveness in the workplace as BSP applies new ways of working in the process of developing powerful new capabilities from smarter exploration, leaner hydrocarbon development, and safer operations. For instance, applying machine learning to reduce downtime of equipment, which could lead to lost production and higher maintenance costs. The predictive analytics leads to more stable operations and greater energy efficiency.
Two examples of digital bespoke solutions that BSP’s data scientists have produced include Quantitative Interpretation Probabilistic Automated Solution (QIPAS), a quantitative interpretation tool, aimed at accelerating BSP’s ability to review larger areas of seismic data on the likelihood of hydrocarbon presence and Wiggles to Wells, which is an assisted well trajectory planner.
People and Country are critical for BSP. This means creating jobs for the nation, to develop people inside and outside of BSP and to help grow Bruneian businesses to become internationally competitive in support of realising Brunei Vision 2035.
In June 2018, the new Bruneianisation Directive that came into effect requires Oil and Gas operators in Brunei to achieve 90 per cent Bruneians at all levels and skillpools. BSP continuously supports the Bruneianisation Directive through its ongoing efforts in developing the capabilities of its Bruneian professionals to take on key positions and responsibilities. Through its efforts in this area, BSP has made significant strides in Bruneianisation, increasing from a level of 75 per cent in 2009 to 87 per cent in 2019.
In 2019, 56 Bruneians were developed through International Assignments and Local Secondments. This broadening opportunity was recognised as a key component of developing Bruneians in other challenging and diverse business environments, especially for emerging skillpools.
To further secure its talent pipeline, Brunei Shell Joint Venture Companies (BSJV) has sponsored more than 700 scholarships since 1972 for young Bruneians to pursue higher education locally and abroad. In 2019, 42 exemplary students were officially awarded with the prestigious scholarship to pursue their degree in various courses. This is the highest number of recipients ever recorded since the programme’s inception.
BSP is also proud to play its part in supporting the vision of His Majesty Sultan Haji Hassanal Bolkiah Mu’izzaddin Waddaulah ibni Al-Marhum Sultan Haji Omar ‘Ali Saifuddien Sa’adul Khairi Waddien, Sultan and Yang Di-Pertuan of Brunei Darussalam in encouraging more youth to participate in entrepreneurship. Supporting the i-Usahawan programme, a youth entrepreneurship development initiative by the Ministry of Energy, six start-up companies signed their first ever contracts with BSP. This is hoped to be a first step for these budding entrepreneurs that will enable them to move onto bigger, more technically challenging contracts in the future.
In support of youth development and in lauding His Majesty’s Titah to boost the nation’s rice self-sufficiency, BSP, through LiveWIRE Brunei, its entrepreneurship arm and Social Investment Flagship programme, allocated funds to support the Agrobiz Padi Agropreneur scheme. Some 10 hectares of paddy fields located at the IBTE Agro-Technology Campus in Kampong Wasan have been designated as a training ground for the future “agropreneurs” to acquire the knowledge and practical skills needed to be successful commercial farmers. Reaching its first milestone, the planting of the first paddy cycle commenced in November this year and the first harvesting has taken place in February 2020.
Working on high-risk onshore and offshore operations can be complex. That is why Safety has, and will always be, the number one priority for BSP. As the Oil and Gas industry has developed over the years, so have BSP’s safety standards. BSP’s main objective is to ensure there is no harm to people and that at the end of their shift, everyone goes home safely.
One of the key facets of BSP’s safety culture is the practice of open intervention, to prevent and stop an unsafe practice or behaviour. BSP’s Safety Day, held annually, encourages more than 25,000 employees and contractors to take time out of their busy schedules to have deeper conversation on safety. This is followed up with commitments and action plans to create a safer work place and inculcate more positive safety behaviours.
The commitment to safety continues well after Safety Day. Throughout the year, BSP leaders regularly conduct “Go and Engage” visits to sites, driving a culture of reaching out to frontline team members, to show care and to have conversations about dilemmas and risks that colleagues encounter in their tasks.
As BSP starts this new decade, BSP’s Fit for Future strategy outlines BSP’s desire to continue operating its oil and gas assets sustainably, safely, reliably and responsibly and to grow Bruneian talent and businesses. With a wealth of talented people working for the company and championing the “I am BSP” mindset of being accountable, focussed and collaborating, BSP will continue to achieve new successes so it can continue to support the nation’s aspirations to realise Brunei Vision 2035.
Established in 1969, Brunei LNG Sendirian Berhad pioneered large-scale liquefaction of natural gas in the Western Pacific and helped to establish liquified natural gas (LNG) as a global energy resource.
Brunei LNG is one of the leading suppliers of LNG with 50 years of experience in the industry, supplying LNG to customers in the Asian region. The company has delivered more than 7,300 cargoes to date and has not missed a single cargo delivery since commencing its operations. Brunei LNG’s asset reference plan is set to rejuvenate its assets with a goal to maintain the production capacity of 7.2 million tonnes per annum, meet anticipated health, safety and environment (HSE) standards and create synergy with the plant’s expansion.
Celebrating 50 years, Brunei LNG remains steadfast in its commitment to support Brunei Vision 2035. The company has set up long-term strategies and goals to increase the number of locals in key positions, enhancing competencies and local business participation. Brunei LNG is proud to be 92 per cent Bruneian in line with the Bruneianisation Directive.
In the near future, Brunei LNG endeavours to establish new long-term contracts for the company’s growth. The company also aims to identify the various core competencies to enhance its global positioning as a preferred LNG supplier.
In the 1960s, Brunei Darussalam embarked on an ambitious joint venture with Shell Overseas Holdings Limited and Mitsubishi Corporation to begin large-scale liquefaction and transportation of natural gas following the discovery of gas reserves in the country’s waters.
This led to the establishment of Brunei LNG Limited in 1969 to liquefy natural gas. The LNG is then purchased by Coldgas Trading Limited (50 per cent Shell and 50 per cent Mitsubishi) and delivered to customers in Japan.
The LNG Plant in Lumut was completed in 1972, and in the same year, Brunei LNG had its first cargo delivered by SS Gadinia to Osaka Gas in Japan.
In 1973, His Majesty Sultan Haji Hassanal Bolkiah Mu’izzaddin Waddaulah ibni Al-Marhum Sultan Haji Omar ‘Ali Saifuddien Sa’adul Khairi Waddien, Sultan and Yang Di-Pertuan of Brunei Darussalam officially opened the Brunei LNG Plant.
His Majesty said he hoped the plant would bring prosperity to the country, having always believed that such enterprises would contribute significantly towards Brunei’s development, particularly in the aspect of economy and the standard of living. He also highlighted the importance of locals being a part of the LNG industry.
In 1977, Brunei Coldgas Sendirian Berhad was established and took over the rights and obligations of Coldgas Trading Limited. Almost 20 years later in 1996, Brunei Coldgas Sdn Bhd and Brunei LNG Limited merged to form Brunei LNG Sdn Bhd.
Brunei LNG is currently owned by the Government of His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam (50 per cent), Mitsubishi Corporation (25 per cent) and Shell Overseas Holdings Limited (25 per cent).
Natural gas, aside from crude oil, is one of Brunei’s major revenue earners. In addition to producing LNG, Brunei LNG also produces liquefied petroleum gases (LPG) as a by-product for domestic sales by Brunei Shell Marketing Sdn Bhd.
Supplying LNG across the globe, Brunei LNG’s current customers include its long-term, Japanese foundation buyers: JERA, Tokyo Gas, Osaka Gas and medium-term buyers: Shell LNG Marketing and Trading, PETRONAS LNG Limited, as well as Koch Supply and Trading. The LNG is transported via five LNG vessels which are owned by Brunei Gas Carriers Sdn Bhd.
Brunei LNG celebrated 40 years of successful delivery of LNG cargoes to Japan in 2013 and extended purchase agreements with the Japanese consortium of buyers for another 10 years. These two milestones signify the strength of the relationship between Brunei LNG and the Japanese foundation buyers, without whom Brunei LNG would not be the successful project it is today.
Last year, Brunei LNG had the opportunity to celebrate its golden jubilee with its Japanese foundation buyers in Tokyo, Japan highlighting the strong relationship built over the past five decades between Brunei LNG and the buyers as well as the two countries. Present as the Guest of Honour, Director of Brunei LNG and Representative of the Government of His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam was Minister at the Prime Minister’s Office and Minister of Finance and Economy II, Dato Seri Setia Dr Awang Haji Mohd Amin Liew bin Abdullah. Also present was Deputy Minister of Energy Dato Seri Paduka Awang Haji Matsatejo bin Sokiaw, representatives from shareholders, management and senior officers of Brunei LNG.
Brunei LNG diversified its portfolio of buyers in 2013 from end users to traders, signing Sale and Purchase Agreements with Shell Eastern Trading Pte Ltd and PETRONAS LNG Ltd, providing an opportunity for Brunei LNG to not only diversify its delivery destinations with different customers but also providing indirect access to other potential customers.
Brunei LNG signed a medium-term deal agreement with Koch Supply and Trading in 2018, further diversifying Brunei LNG’s portfolio of buyers and presenting the company with the opportunity to explore outside usual markets.
Brunei LNG’s Plant has five liquefaction trains capable of processing 9,700m3 of gas per day, with natural gas supplied by Brunei Shell Petroleum Company Sdn Bhd (BSP) and Block B Joint Venture (BBJV) comprising of Total E&P Borneo BV, Shell and Petroleum Brunei. The Brunei LNG jetty, which is 4.5km in length and transports the LNG from the plant to the LNG vessels, features the only rail operation in the country.
Potential future deepwater supply is expected from a consortium of PETRONAS Carigali Brunei Ltd, Shell Deepwater Borneo, Canam Brunei Oil Ltd and Diamond E&P B.V.
The country’s gas resource volumes remain strong, supported by continuous focus on maximising recoveries of discovered fields through advanced technology and innovative solutions as well as increasing exploration activities.
As one of the oldest plants in the world, Brunei LNG has invested billions of dollars in plant rejuvenation works over the past five decades, extending the plant’s lifetime while producing LNG safely and efficiently.
In 2015, Brunei LNG completed the Tank 6 Project within budget and without any Loss Time Incident (LTI). The net storage capacity was increased to 280,000m3 following the transition to new LNG carriers which can accommodate between 137,000m3 and 155,000m3. Brunei LNG also completed a new laboratory, building on the success of Brunei LNG lab operations which was ranked first by Shell for six years running.
Meanwhile, 2016 saw the completion of the COGEN II Project – a joint venture project between Brunei LNG, Brunei Shell Petroleum Co Sdn Bhd (BSP) and the Department of Electrical Services. The project resulted in a fuel-efficient plant and reduced Brunei LNG’s carbon footprint.
A significant number of activities are ongoing to ensure higher plant availability and reliability. This includes projects for Refrigerant Machinery Rejuvenation, Instrumentation and Safeguarding, Instrument Air and Nitrogen Plant. Major maintenance is also ongoing for the utilities systems such as raw water treatment and cooling water systems. Brunei LNG continuously strives to optimise its gas value chain and energy efficiency by implementing Advanced Process Control application and process tools.
Brunei LNG continuously contributes to the nation’s capacity development, ensuring Bruneians are being equipped with the necessary skills and knowledge through many different initiatives and collaborations over the years.
In 2017, Brunei LNG significantly contributed to the set-up of Centre for Capacity Building (PPK), a multi-programme vocational skills training centre which is operated by the Ministry of Energy to develop the country’s human resources.
In 2018, the mini plant dubbed Hands-On Operation Training (HOTS) Unit at the Institute of Brunei Technical Education (IBTE) Jefri Bolkiah Campus (JBC) was officially opened, providing IBTE’s students an integrated authentic learning environment to help them develop their skills. The mini plant provides an authentic and practical hands-on training, with the aim of producing industry-ready graduates who can contribute to the needs of the industry immediately. Brunei LNG was involved in leading the project that started in 2015, in collaboration with other partners in the government sectors and the other operator and service companies in the oil and gas industry.
Brunei LNG’s commitment and main strategic objectives for corporate social responsibility are to manage operational impact and contribution to the society at large (Social); to maximise opportunities associated with their operations (Economic); to optimise impacts associated with their operations (Environment).
One of the company’s initiatives is Strategic Social Investment, through contribution to the local communities and other stakeholders. Apart from maintaining a strong relationship with key stakeholders in the business, Brunei LNG also forms partnerships with various organisations and members of the community it operates in, namely Mukim Liang Lumut. Brunei LNG carries out various initiatives under its Strategic Social Investment that are linked to operational impacts and looks towards enhancing project-related opportunities with local communities and other stakeholders.
The establishment of the Brunei LNG-Liang Lumut Community Committee – represented by Brunei LNG staff, penghulus, village heads, school principals and other community leaders – allows the company to provide support in educational, religious and social activities in the area. Engagement sessions are held throughout the year to resolve any issues the community may have pertaining to the company’s operations and discuss opportunities for collaboration that contribute to the development of the nation.
In its support of the Brunei Vision 2035 in terms of education, Brunei LNG recognises the achievement of best students, teachers and schools in the Belait District in an Academic Excellence Awards held annually since 2002.
In 2005, Brunei LNG inked a partnership with Universiti Teknologi Brunei to sponsor and support the Creative Innovative Product and Technological Advancement (CIPTA) Award. The competition aims to promote a culture of ‘creations, innovations, and inventions’ in the country, held biennially with His Royal Highness Prince Haji Al-Muhtadee Billah ibni His Majesty Sultan Haji Hassanal Bolkiah Mu’izzaddin Waddaulah, the Crown Prince and Senior Minister at the Prime Minister’s Office, and Chairman of Brunei LNG, as the patron of the competition.
A part of its 50th anniversary celebrations is the BLNGolden (Brunei LNG Golden) Hearts, a yearlong philanthropy initiative that will see Brunei LNG employees and business partners collaborating with various communities around the nation and engaging in altruistic activities.
The simple idea behind BLNGolden Hearts is for the Brunei LNG community to show its gratitude for the company, its surrounding community and the rest of the nation as Brunei LNG reaches this golden milestone of 50 years. BLNGolden Hearts is a fantastic opportunity in conjunction with Brunei LNG’s 50th anniversary for the company and its employees to show their appreciation that Brunei LNG is reaching such a great milestone. It is also an occasion to foster closer relationships with communities as well show gratitude to the nation Brunei LNG operates in. BLNGolden Hearts was launched in April 2019 and will continue throughout 2020.
In order to protect the environment, Brunei LNG complies with local environmental regulations and their own standards. The company is ISO4001 certified, a robust environmental management system that provides assurance that the company’s environmental impacts are being measured and improved. Brunei LNG works closely with regulators (Ministry of Energy and SHENA) and stakeholders (Lumut Liang community) to ensure continuous improvement and follows environmental best practices from around the globe.
Environmental advocacy on greenhouse gas, air, wastes are key areas for 2019 especially with the recent urgency around climate change. Other than that, Brunei LNG regularly engages staff and business partners on green educational campaigns such as celebrating environmental international days like Earth Hour and World Ocean’s Day, recycling drives and carpool campaigns.
Brunei Gas Carriers (BGC) was established in 1998 as a joint venture between the Government of His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam, Shell Gas BV and Diamond Gas Carriers BV. As BGC reaches its 22 years of operations, BGC maintains its position in the top quartile of the liquefied natural gas (LNG) shipping industry, contributing significantly to the nation’s economy.
BGC delivers LNG to Brunei LNG’s clients in the Asia-Pacific region including Japan, Korea, China, Malaysia and Taiwan. The company owns five A-Class vessels namely Abadi, Arkat, Amali, Amani and Amadi with capacities ranging from 137,000m3 to 154,800m3.
In July 2019, BGC became the first blue water shipping company in the country to be issued a Document of Compliance by the Maritime and Port Authority of Brunei Darussalam. With this certificate, BGC is now officially recognised as a fully fledged ship manager. Its A-Class vessel, Abadi, is the first vessel to be managed and operated exclusively under the company’s safety management system. Abadi was formerly managed by Shell International Trading and Shipping Company Limited (STASCO), preparing BGC to establish itself as a competent and reliable ship owner and manager of its own right.
Following the success with Abadi, BGC Managing Director John Cook said the rest of the A-Class vessels will also undergo the same process of certification, with Arkat and Amali up next, then Amani and Amadi. The company aims to complete its ship management transition by the end of the first quarter of 2020.
Moving forward, BGC continues to explore other aspects of shipping within Brunei and provide maritime expertise while developing local talent. The company aspires to develop its services and expand beyond the delivery of LNG.
Operating in more than 130 countries, Total is a top-tier international oil and gas company and a major player in the low-carbon energy field. The company has been operating in Brunei since 1987, represented by two affiliates. Total E&P Borneo BV (TEPB) is the operator of Block B Joint Venture, whereas Total E&P Deep Offshore Borneo BV (TEPDOB) is the operator of Block CA1.
Maharajalela Jamalulalam field, located in Brunei Block B, was discovered in 1990 and has been producing gas and condensate since 1999. Total currently has three offshore platforms and one onshore processing plant in Lumut.
In 2019, TEPB marked another milestone with the signing of the first contract awarded under the i-Usahawan programme initiated by the Ministry of Energy.
Through the combined effort of its employees and contractors, TEPB recently celebrated its 20 years with zero lost-time and injury. TEPB prioritises the safety of its employees, and one of the tools that the company has in place to ensure these safe practices is Permit to Work, which allows employees to evaluate and assess any risks or hazards before starting any job. Another safety measure of Total is the Stop Card, which gives an employee the authority from the general manager to stop any unsafe act immediately.
Moving forward, Total aims to meet the energy needs of the growing world population while tackling climate change and meeting new customer expectations.
Megamas Training Company Sdn Bhd is a thriving medium-sized business that is headquartered in the Belait District. Specialised in health, safety and environment (HSE) training and consultancy, Megamas has a wide client base in the country and the Asia Pacific region.
As the first integrated safety training establishment registered in Brunei Darussalam in 1989, the company has since expanded, providing extensive training courses in line with international safety standards and expectations.
With a strong combination of local commitment and global expertise, Megamas is acknowledged as one of the leading training providers in the region with a track record for quality courses and world-wide recognition and achievements to boot.
In an interview, Megamas Executive Advisor Mohd Roger Ainsworth, who had been at the company for more than 20 years, reminisced on some of the memorable moments of Megamas, starting from its inception on December 14, 1989.
Having since been established by his wife, Hajah Khadijah binti Haji CA Mohamed whom he had met in 1991, he was aware of the various workings of the company since the early beginning, and had only joined the company in 1999 after having left Brunei Shell Petroleum (BSP).
“One of our first memorable milestones for Megamas was around the summer of 1999, where we had won the offshore contract from BSP, and we were delighted, even though it presented further challenges which we were able to tackle head on,” he said.
One such credential that had led to Megamas excelling in its field of providing quality and relevant HSE training and consultancy was their certification by the Offshore Petroleum Industry Training Organization (OPITO).
“In addition, we also managed to complete some of our facilities that are still in use today such as our swimming pool to conduct T-BOSIET or Tropical Basic Offshore Safety Induction and Emergency Training, which we first conducted back in March of 2000,” he noted.
He added that over the course of a year from 1999 to 2000, the company was able to deliver the standard that BSP had required at the time in accordance to the OPITO standards. In addition, Megamas was the first training provider in the world to conduct such training. Other training providers at the time had conducted similar training but only in cold waters rather than tropical warm waters.
“Furthermore, His Majesty was also present during this first training course conducted to bless us with his presence; which was a wonderful moment for the company as our efforts in providing quality training courses had paid off,” he said.
Another milestone reached by the company was to be the first training provider in the region to conduct the NEBOSH IGC (International General Certificate), back in November 2004. Mohd Roger noted that on October 14, 2019, Megamas had run the 100th NEBOSH IGC course.
The NEBOSH IGC provides a broad understanding of health and safety issues and is an essential qualification for anyone in the health and safety field all over the world. The Safety, Health and Environment National Authority (SHENA) requires companies to have their worksite supervisors qualified in NEBOSH. Megamas has trained over 1,500 people in NEBOSH, contributing to a safer environment while increasing efficiency and productivity.
Over the course of the start of the millennium, the executive advisor noted that Megamas had also achieved various international awards, including the British Safety Council Award, which the company had achieved 11 times in the span of 12 years, the Royal Society for the Prevention of Accidents (RoSPA) awards, and more.
“Out of all the awards, the one that stood out the most was back in 2015, when Megamas was voted as the Best Training Provider in the World by OPITO, from 46 countries across the globe,” he added.
He also noted that having been voted as the best training provider in the world by OPITO gave not only the company but also its staff members a boost in their confidence, as having won this out of all other training providers from across the world meant that the staff members — many of whom are local Bruneians — are capable of competing on a global scale.
One of the proud moments for Mohd Roger which he shared was that the awards Megamas had acquired were made possible due to the hard work and dedication put forth by the staff members of the company. Many of the staff are seniors who had worked for the company for a decade or more.
“Back when Megamas started, we only had 27 staff. Today, we employ 97, among whom 93 per cent are locals, which I believe is one of the highest percentage of locals being employed with a variety of qualifications in conducting various training courses that we provide here,” he said.
He also affirmed that he is an advocate for Bruneians being capable for greater success, especially on the rough offshore, further noting that if the company were to look after people, they would work well for them, and Bruneians are no different.
“Megamas is the living proof that Bruneians can achieve greatness just as any other renowned international company from across the globe can, which is something I am most proud of in all my time here at Megamas,” he highlighted.
In addition to having 29 years without any lost time injury (LTI), the company also celebrated its 30th anniversary in December 2019, marking yet another momentous milestone in the company’s long and eventful history.
To date, Megamas Training Company conducts over 200 courses not only for the oil and gas industry, but also other industries such as construction, telecommunication, education, manufacturing, food and beverages, as well as hospitality.
The company’s courses that are accredited to international standards such as IOSH, NEBOSH, ROSPA, OPITO, St John Ambulance, LEEA, Highfield, British Safety Council, CIEH, IMO are further categorised into 12 training disciplines. These training disciplines are as follows: Health and Safety, Environmental, Advanced and Defensive Driving, First Aid, Fire Fighting, Maritime, Material Handling, Offshore Survival, Occupational Health, Permit to Work, Professional Development and Scaffolding. Training can be carried out at Megamas training centres in Brunei or its clients’ locations both locally and internationally.
Many of Megamas consultants are also trainers at Megamas and are therefore knowledgeable in the latest industry developments. Their consultants understand the workplace challenges and are capable of identifying and solving the issues faced by clients. Megamas maintains an open approach and dialogue which forms a longlasting partnership with their clients. These partnerships often span a number of projects and years, a testament to the quality of services provided by Megamas.
Brunei Shell Marketing Company Sdn Bhd (BSM) began its operations in 1959 as a joint venture between the Brunei Government and Shell Overseas Holding Limited. As the sole fuel supplier in the country, BSM’s evolution over the past 60 years was built on the solid foundation of its strong relationship — be it with their own people or customers — that have formed the backbone of its sustainable success.
BSM has a wide range of products, distributed across various industries. The company’s product portfolio includes fuel for road vehicles and aircraft, premium Shell lubricants, drilling fluid for the oil and gas industry, as well as bitumen for laying roads, pavements and other surfaces.
Today, there are 36 retail petrol stations across the country with over 500 million litres of fuel sold per year. BSM operates from its main office in Bandar Seri Begawan and Brunei International Airport Aviation Depot.
In February 2020, BSM unveiled two new fuel variants, Shell V-Power Gasoline and Shell V-Power Diesel. The new fuels are designed to deliver enhanced performance and efficiency. The fuels were launched by His Royal Highness Prince Haji Al-Muhtadee Billah ibni His Majesty Sultan Haji Hassanal Bolkiah Mu’izzaddin Waddaulah, the Crown Prince and Senior Minister at the Prime Minister’s Office, and Chairman of BSM’s Board of Directors.
Shell V-Power Gasoline is currently available at 14 petrol stations, whereas Shell V-Power Diesel is available at seven retail stations. Existing quality fuels, namely Shell Premium, Shell Super, Shell Regular and Shell Diesel, remain unchanged and will continue to be available for the public.
At the heart of BSM’s mission is to make sure that people get to their destinations safely and making sure goods are delivered on time, whether it is on land, sea or air. This is enabled by BSM’s 100 committed employees, of which 98 per cent are locals who are equipped with different skill sets to facilitate business operations.
“We are also able to leverage on our Shell International standards, and this is the benefit of being a part of the Shell Group because it enables us to pull expertise that we need from the global experts in the respective areas for trainings and assignments to ensure our staff have the right competencies,” said BSM Managing Director Muhammad Norshafiee bin Dato Paduka Haji Abdul Jalil.
BSM engages global experts in respective areas to hone the skills of its employees. BSM also sends its employees on international assignments, who then return to the country and transfer their knowledge via coaching and mentoring.
BSM takes great pride in fueling the nation and the everyday lives of the Bruneian people. Its fuels have powered vehicles in Brunei for the last 60 years.
On average, BSM supplies Jet A-1 fuel daily to 25 aircraft at the Brunei International Airport. In 2014, BSM Aviation achieved ISO Certified 14001 and 9001. The team was awarded Bronze Goal Zero by Shell Aviation Global in 2007, followed by Gold in 2011 and 2012, then the Platinum award in 2013. The awards indicate BSM’s Aviation’s success in remaining Lost Time Injury (LTI) free for the past 24 years.
The BSM road transport operations add-up to more than 270,000 man-hours and covers approximately 3.4 million kilometres annually. Despite the significant exposure, BSM and its partners have recorded over five million-man hours LTI free in the last six years, delivering an average of about one million litres of gasoline and diesel and about one million litres of aviation fuel per day.
“Despite these achievements, we remain vigilant at all times, accidents are something that can happen anytime so we are always careful to make sure strong safety standards are observed because we want everyone to go home to their families safe,” he added.
Prioritising the safety of its employees, BSM implemented a ‘guardian’ system in its delivery tankers. According to the Managing Director, the system uses a camera that detects micro facial movements of the driver. If the camera detects any distractions or sign of fatigue, the driver will be alerted immediately and the control centre will be flagged.
As part of its efforts to cascade safety measures to the public, especially in filling stations, BSM has stepped up road shows and campaigns to spread safety awareness such as the Fill Safe, Feel Safe campaign in 2019.
As a company that has been deeply engrained with the history of the oil and gas industry in Brunei, BSM places high importance on its ties with the community. BSM supports sustainable community development through its Corporate Social Responsibility (CSP) initiatives, sponsoring events that promote innovation, creativity, cultural heritage and local entrepreneurship.
Furthermore, starting in 2020, BSM will be sponsoring students to further their education at tertiary level overseas or locally and come back as new professionals of BSM, said Muhammad Norshafiee. The company will also recruit fresh graduates for its marketing, commercial and retail departments.
With a strong brand and market presence forged for the past 60 years, BSM is a well-respected veteran in the fuel industry and is currently exploring into venturing into new areas.
“With digitalisation in all aspects of life and the Internet of Things (IOT), especially through smartphones, and with our young population, there are vast opportunities out there that remain untapped,” said Muhammad Norshafiee.
Making use of data analytics is high on BSM’s agenda, he added. By collecting and analysing data, BSM can understand its customers better and focus on offering personalised services, as well products and services outside the fuel sector.
“There are a lot of opportunities for us. Everyone goes to our filling stations at some point in the day or in the week. So we have the opportunity to offer new products and services which are convenience related such as food or beverages, even various services in partnership with other service providers,” he said.
Copyright 2019 Borneo Bulletin Yearbook 2019 All rights reserved.
