As the country works towards achieving Brunei Vision 2035, each sector in Brunei Darussalam has a significant role to fulfil. 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. Effective November 19, 2019, the Ministry of Energy, Manpower and Industry was restructured and renamed Ministry of Energy to focus on energy matters.
The ministry’s core roles include: responsibility for prudent exploitation of hydrocarbon resources; grow and diversify downstream industry; strengthen sustainable energy efforts through the implementation of renewable, alternative and energy efficiency initiatives; and supply of reliable, safe, efficient and affordable energy to the nation.
The Petroleum Authority of Brunei Darussalam (PABD) Order 2019 was introduced on December 31, 2019 to allow for the formation of PABD, its board and matters connected to the operations, functions and duties.
PABD is a statutory body tasked by the Ministry of Energy to undertake regulation and monitoring of operations and infrastructure in the upstream, midstream and downstream oil and gas sector, and act as custodian of petroleum data in Brunei Darussalam.
The establishment of PABD serves as an important milestone in the development of the oil and gas sector in Brunei by contributing to a more conducive business environment for the industry. The consolidation of operational regulatory functions of the oil and gas sector into a single entity is intended to streamline operations and provide clarity to businesses and potential investors for growth and diversification of the oil and gas industry. PABD also serves as a technical resource for the government on petroleum matters.
Since the discovery of oil in 1929, the oil and gas industry has grown to become the largest and most mature economic sector in Brunei Darussalam.
In 2019, the oil and gas sector accounted for nearly 60 per cent of the country’s gross domestic product (GDP) and 90 per cent of exports. The Ministry of Energy has played a pivotal role in developing oil and gas as the country’s main source of revenue. In recent years, the oil and gas industry has seen major milestones particularly in the expansion and diversification of its downstream sector.
The most significant downstream project development in recent times is the full commercial operation of the Pulau Muara Besar (PMB) Refinery and Petrochemical Plant in November 2019.
The PMB Refinery and Petrochemical Plant is the largest foreign direct investment project in Brunei Darussalam, with the capacity to refine 175,000 barrels per day of crude oil per year and generate eight million tonnes of petroleum and petrochemical products per year.
On May 15, 2020, Hengyi Industries Sdn Bhd, as the operator of the refinery and petrochemical plant, started its first supply of petroleum products for the domestic market as a part of its commercial agreement signed with Brunei Shell Marketing Company Sdn Bhd (BSM).
Towards the expansion of the downstream energy sector and to further explore opportunities in alternative energy sources, the ministry continues to facilitate the global hydrogen supply chain demonstration project jointly conducted between Brunei Darussalam and Japan, and operated by the Advanced Hydrogen Energy Chain Association for Technology Development (AHEAD). The project aims to achieve global hydrogen transport and supply technology for full-scale hydrogen power generation by 2030. The project reached a significant milestone after successfully transporting hydrogen produced from the Sungai Liang Industrial Park (SPARK) to Japan in the form of a stable organic compound shipped via conventional shipping methods, since December 2019.
Hydrogen was successfully extracted and supplied to Japanese power plants on May 25, 2020. The landmark achievement marked the success of the world’s first international hydrogen supply chain.
The Brunei Fertilizer Industries (BFI) ammonia and urea production plant will also add to the expansion of the country’s downstream energy portfolio, said the minister.
In 2019, the construction of the BFI project generated local employment of 411. The plant is scheduled to start operations in the second quarter of 2021 with a production capacity of 3,900 metric tonnes per day of urea.
While focussing on the development of the country’s energy sector, the ministry is also committed to maximising job opportunities for locals. Several directives have been issued by the ministry, including the Local Business Development (LBD) and Bruneianisation drive. The LBD directive is aimed at maximising local spending in the form of generating local job opportunities and the local use of goods and services. In 2019, a number of spin-off opportunities driven by the Ministry of Energy were executed, which contributed to 300 job opportunities for locals.
Meanwhile, the Bruneianisation directive for the oil and gas sector was issued to enhance succession planning, progression and employment opportunities for Bruneians, while developing highly competent Bruneians on all organisational levels.
As of December 2019, the overall percentage of Bruneians among the oil and gas workforce was reported at 70 per cent.
With future downstream developments and ongoing upstream oil and gas activities, new skills and technology will be brought to Brunei’s workforce and market. Other upcoming oil and gas activities include increasing exploration activities, which will accelerate development of new oil and gas fields especially in deep-water areas.
The Ministry of Energy is looking at developing small- and medium-scale solar projects that will suit Brunei Darussalam’s environment and conditions, as the country has seen an increase in the usage of green and renewable energy. This was shared by Minister of Energy Dato Seri Setia Dr Awang Haji Mat Suny bin Haji Mohd Hussein during ‘Transition: Transitioning to our Low Carbon Energy Future’ panel session at the Singapore International Energy Week (SIEW) 2020, on October 26, 2020.
The minister said solar technologies are already being utilised in Brunei Darussalam to supplement the rural population’s energy supply.
He affirmed that the Ministry of Energy will continue its efforts towards reducing energy intensity and to increase the total share of renewable energy in Brunei’s power generation. The minister also reiterated the importance of gas as an accessible and affordable source of cleaner energy in the region. This is underlined by its prominence in the ASEAN Plan of Action on Energy Cooperation for sustainable energy development in ASEAN.
Innovation and technology together with affordability, he explained, “will play a key role in realising a low-carbon energy future. Hydrogen, Carbon Capture, Utilisation and Storage (CCUS) and energy storage technologies were highlighted as upcoming key technologies that have been forecast by the International Energy Agency (IEA) that can further accelerate the reduction of global greenhouse gas output”.
He added, “The Ministry of Energy will closely monitor its development to support the national climate agenda and global efforts for decarbonisation.”
The country’s first climate change policy was launched by the Brunei Darussalam National Council on Climate Change on July 25, 2020.
Dubbed the Brunei Darussalam National Climate Change Policy (BNCCP), the policy aims to pave the way towards low carbon and climateresilience for a sustainable nation. In recognising the nation’s foundations and constructing a successful Zikir Nation, the BNCCP is driven by the five Maqasid (objectives) of the Syariah.
The core strategic areas are guided by the principles of achieving Brunei Vision 2035 and promoting economic security, sustainability and prosperity through a low carbon approach in protecting the environment to ensure environmental sustainability. The policy focusses on 10 core strategic areas with objectives that are to be implemented in the next 15 years, with 2035 as the general target year.
The 10 strategic areas include industrial emissions, forest cover, electric vehicles, renewable energy, power management, carbon pricing, waste management, climate resilience and adaptation, carbon inventory, and awareness and education. Under the key strategy for industrial emissions, the country will reduce its overall emissions in the industrial sector through zero routine flaring and to ensure it is as low as reasonably practical.
Meanwhile for forest cover, the strategy is to increase carbon sink through afforestation and reforestation with a target of planting 500,000 new trees.
Under electric vehicles, Brunei is looking to increase the total share of electric vehicles to 60 per cent of total annual vehicles sales while for renewable energy, an increase in the total share of renewable energy to at least 30 per cent of total capacity in the power generation mix.
In power management, Brunei is looking to reduce greenhouse gas emissions by at least 10 per cent through better management of electricity consumption.
As for carbon pricing and waste management, Brunei looks to impose price on carbon emissions and reduce municipal waste to landfills to one kilogram per person every day. Under the strategy for climate resilience and adaptation, Brunei is looking to increase capacity to adapt to climate impacts and achieve resilience while in strategy for carbon inventory, mandatory monthly and annual reporting of carbon inventory.
For awareness and education, the country is looking to increase awareness and education surrounding mitigation and adaptation responses against climate change. The implementation of this policy shows a potential to reduce greenhouse gas emissions by more than 50 per cent in 2035 compared to the business-as-usual level. With the BNCCP, both mitigation and adaptation strategies can be adopted to ensure that climate change issues are actively addressed in the short, medium and long term.
The BNCCP was drafted by the Climate Policy Drafting Committee (CPDC), which consists of 39 agencies involving the government, private sector, research institutions, academics, associations, NGOs and a group of about 51 youth representatives to emphasise that climate change issues are cross-sectoral and require a whole-of-nation approach.
The Brunei Energy Industry Integrity Pact was established in 2017, with 10 founding members made up of established oil and gas companies in the country. The 10 founding members are: Brunei Shell Petroleum Company, 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 more companies joined the pact, further strengthening the anti-corruption network.
The pact comprises 10 essential principles that companies must incorporate into their ways of working to monitor integrity and compliance risks in the course of their operations. The 10 principles include prohibition of bribery, full collaboration with the Anti-Corruption Bureau, and to refrain from conducting business with those who demonstrate poor integrity and ethical practices. By agreeing to the pact, the industry conveys its zero-tolerance message that any company lacking integrity and transparency will be denied the opportunity to do business with any of the oil and gas operators in Brunei.
Participating companies are monitored by members of the Brunei Energy Industry Integrity Working Group, made up of employees from the oil and gas operators who jointly authored the Integrity Pact principles. The companies will partner with the Ministry of Energy and the Anti-Corruption Bureau to maintain and foster business integrity. With Brunei’s revenue mainly derived from the energy industry, the group aims to ensure that transparency, fairness and integrity remain at the forefront of the industry’s business dealings.
Established in 1954, Mitsubishi Corporation (MC) is a global integrated business enterprise headquartered in Japan that 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 1,700 group companies.
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 business activities have expanded far beyond its trading operations to include business development, production and manufacturing operations, working in collaboration with its trusted partners around the globe. With regards to liquefied natural gas (LNG), since the late 1960s, MC has participated in various LNG projects in Brunei Darussalam, Malaysia, Indonesia, Australia and Russia, among others.
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 country’s LNG business from the beginning since the establishment of Brunei LNG in 1969 and the first LNG cargo delivery from Brunei to Japan in 1972.
MC values its relationship with producing countries and customers, and has extended its LNG value chain in the world to achieve economical, societal and environmental value. In addition to LNG business, MC is involved in businesses such as the Block CA2 upstream development, Brunei Gas Carriers (BGC), MC Biotech (Astaxanthin), AHEAD (Hydrogen) and Tabérumo Biofarm (Spirulina) in Brunei.
In 2020, MC supported an Environmental Education Tour project at TSB, a solar power plant in Seria to promote the awareness and education of use of renewable energy technologies for environmental sustainability. This 2021 year will be 50th year anniversary of MC Brunei Liaison office which was established in Brunei in 1971.
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.
Established in 1969, Brunei LNG Sdn Bhd is the first in the Western Pacific to begin large-scale liquefaction of natural gas. Brunei LNG is one of the leading suppliers of liquefied natural gas (LNG), primarily supplying to its customers in the Asian region. To date, Brunei LNG has delivered more than 7,400 cargoes. The LNG is transported via five LNG vessels owned by Brunei Gas Carriers Sdn Bhd.
Brunei LNG’s 130-hectare 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. Brunei LNG is also the current sole producer of liquefied petroleum gas (LPG) in Brunei Darussalam, as a by-product of LNG at its bottling plant for domestic sales by Brunei Shell Marketing.
Over the past five decades, Brunei LNG has invested billions in rejuvenation works to ensure the plant is continuously upgraded, keeping in line with safety standards and extending its lifetime while still delivering its LNG commitment to its customers. In addition, Brunei’s gas resource volumes remain strong, supported by continuous focus on maximising recoveries of discovered fields underpinned by the application of advanced technology and innovation solutions and increasing exploration activities.
In 2020, despite an extremely challenging year due to COVID-19, Brunei LNG continued to maintain normal operations and delivered 100 per cent of its committed contractual cargoes. The company also expanded its customer base through the sales of spot cargoes.
People are Brunei LNG’s driving force, the engines of its operational excellence and the essence of the company’s strengths. In support of the Ministry of Energy’s Bruneianisation Directive, Brunei LNG has achieved 92 per cent Bruneianisation employing over 600 employees working directly for the company.
Brunei LNG also continues to provide employment and development opportunities for the country’s youth through programmes such as the Operative Technicians Progression Scheme and Graduate Development Programme.
The programmes will ensure that every individual will have the opportunity to develop to their maximum potential and become a productive workforce ready to meet the nation’s manpower needs.
Brunei LNG is proud to be a diverse and inclusive organisation providing equal opportunities for all Bruneians. Diversity and Inclusion in Brunei LNG is about recognising differences, whether it is gender, age, race, religion or culture, along with respecting and valuing these differences. One in three Brunei LNG employees is female and women are represented across the organisation in both technical and nontechnical roles.
In October 2020, Brunei LNG appointed its first Bruneian female Managing Director (MD) and Chief Executive Officer (CEO), Hajah Farida Dato Seri Paduka Haji Talib, in its 50-year history and the first Bruneian female MD and CEO across the Brunei Shell Joint Venture (BSJV) companies.
The long history of the LNG industry in Brunei is a proud story of the country and its people under the wise leadership 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 the 1960s, Brunei 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.
Brunei LNG was established primarily for the purpose of liquefying natural gas. The plant construction in Lumut was completed in 1972, thrusting Brunei’s name in the world as the first LNG project in Asia.
Brunei LNG’s first LNG cargo was delivered to Osaka Gas, Japan in the same year (1972) by SS Gadinia to Senboku terminal No 1. Gadinia was the oldest serving LNG vessel in the world and was later renamed Bebatik. It was decommissioned in April 2018.
His Majesty officially opened the plant on April 4, 1973. 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.
The success of Brunei LNG is in part due to its Japanese Foundation Buyers – JERA, Tokyo Gas and Osaka Gas – who have been Brunei LNG’s customers since it started operations.
In 2013, Brunei LNG took the step to diversify its portfolio of buyers from end users to traders, signing Sale and Purchase Agreements with Shell Eastern Trading Pte Ltd and Petronas LNG Ltd. Brunei LNG further diversified its portfolio of buyers in 2018, signing a medium-term deal agreement with Koch Supply & Trading Sarl, presenting the company with the opportunity to explore outside usual markets.
While the demand for LNG continues to grow globally, Brunei LNG remains a safe and reliable supplier in the Asia Pacific region. Brunei LNG is currently in the active phase of marketing future LNG volumes, expanding and diversifying its existing customer base.
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); and to optimise impacts associated with their operations (environment).
Under ‘social’, one of the company’s initiatives is strategic social investment, through contribution to the local communities and other stakeholders. It is an opportunity for Brunei LNG to not only give back to the community it operates in but also to build and foster stronger relationships with its community members.
In 2020, Brunei LNG carried out its very first Orphan’s Donation via drive thru, adhering to the Ministry of Health’s social distancing guidelines, to 187 orphans residing in Mukim Liang over two days. Brunei LNG also distributed necessities to 12 families in need in Mukim Liang as part of its scaled down ‘Caring BLNG’ Charity Drive.
To support the efforts of His Majesty’s Government and the nation’s healthcare frontliners in combating the COVID-19 pandemic, Brunei LNG donated medical items such as scrubs, isolation gowns as well as surgical gowns and gloves.
The donations were contributions made by the company as well as personally by Brunei LNG employees as part of the company’s BLNGolden (pronounced BLNG Golden) Hearts, an initiative that was started in conjunction with Brunei LNG’s 50th anniversary to give its staff an opportunity to show care and gratitude to the surrounding community of Brunei LNG and the rest of Brunei. This is one of the many activities being done since the launch of BLNGolden Hearts in early 2019 to celebrate Brunei LNG’s golden jubilee.
Under ‘economic’, Brunei LNG is continuously preparing for the ongoing success of its long-term operations. A significant number of activities are ongoing to ensure higher plant availability and reliability. Major maintenance is also ongoing for the utilities systems such as raw water treatment and cooling water systems. Additionally, Brunei LNG continuously strives to optimise its gas value chain and energy efficiency. To improve the efficiency of their activities, Brunei LNG also continuously adjusts its organisation.
As part of maximising opportunities associated with its operations and supporting local business development, Brunei LNG signed its first two contracts under the umbrella of the i-Usahawan initiative in December 2020. Brunei LNG is proud to play an integral part towards Brunei’s Vision 2035 journey and the aspiration of enhancing the economy and developing local capability by prioritising local business participation.
Under ‘environment’, Brunei LNG’s commitment and policy on health, safety and environment and social performance emphasises its commitment to protect the environment, working closely with regulators and stakeholders to contribute towards the nation’s decarbonisation journey. Brunei LNG MD and CEO Hajah Farida is an active member of the Executive Committee on Climate Change as part of the Brunei Darussalam National Council on Climate Change and is a firm believer in sustaining this country’s rich biodiversity for future generations. Brunei LNG also regularly engages staff and business partners on green campaigns such as celebrating environmental international days, recycling drives and carpool campaigns.
Additionally, to support Brunei Vision 2035 in the field of education, Brunei LNG recognises the achievement of best students, teachers and schools in Belait District in an Academic Excellence Awards held annually since 2002.
Brunei LNG also inked a partnership with UTB in 2005 to sponsor and support the Creative Innovative Product and Technological Advancement (CIPTA) Award – a competition aimed to promote a culture of ‘creations, innovations, and inventions’ among the people of Brunei. The competition is 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.
Brunei LNG is currently the longest running commercial LNG plant in the world – an incredible success and achievement for the company – and Brunei LNG remains invested in continuous rejuvenation activities of its assets to ensure that the plant is reliable and safe to produce and supply LNG to its customers for the long term.
Brunei LNG was the first LNG plant to do major rejuvenation replacing instrumentation and upgrading safety standards in liquefaction, storage and loading facilities back in 1994. Brunei LNG made headlines in the oil and gas industry again when it replaced its main cryogenic heat exchanger (MCHE) on site in a live plant in 2005. This was a first for Brunei LNG and a first worldwide as a replacement of MCHE had never been undertaken before in an LNG plant anywhere in the world. The MCHE is the heart of any LNG plant and is the machinery responsible for cooling natural gas to –160 degrees Celsius, the temperature required to turn natural gas into liquid.
Being one of the first LNG plants to start up in the early 1970s, Brunei LNG was also the first to start replacing major parts of the plant. The successful completion ahead of schedule, without production leaks and without HSE losses had clearly demonstrated that implementing complex engineering activities in an operating plant could be undertaken safely, ahead of schedule and with quality results.
Nevertheless, being one of the first LNG plants to start up, Brunei LNG is bound to face emerging challenges such as spare parts that are no longer being produced. As a result, new and innovative technologies to address these emerging challenges are continuously pursued – and in this case, 3D printing technology was utilised. Brunei LNG recently 3D printed its first part – a 316L Stainless Steel Lime Dosing Pump Impeller – using 3D printing technology with the help of Shell 3D Printing Centre of Excellence located in Amsterdam, the Netherlands.
A sample of the pump impeller was sent to Amsterdam where reverse engineering – a process that involves deconstruction of the pump impeller to extract design information via external and internal scanning – was used to create a virtual replica of the pump impeller prior to producing the actual 3D finished product. After the once-off preparation for the printing, the real printing takes nine days with a few additional days for finishing and testing
3D printing of spare parts results in a much better finish in the quality and smoothness especially in the intricate areas, leading to a better performance. The material used was 316L grade stainless steel, which not only makes the pump impeller more reliable, it also increases its longevity. With the completion of the engineering work, the next 3D print of this impeller will only need a push of a button.
Similar to the company’s pioneering roots in the LNG space, Brunei LNG is pioneering in the digitalisation space, where engineers are doing proactive technical monitoring of the plant and advancing process optimisation through data analysis. Brunei LNG has already delivered additional millions to the company’s bottom line by designing a plant that is constantly looking for more gas from its upstream suppliers. This automated feed system is working 24 hours a day, seven days a week to ensure that all available gas to the plant is consumed.
In the near future, Brunei LNG will be investing significantly into making a digital twin of its facility, giving engineers and operations staff a digital version of the plant to interact with. This will help in areas of operations, maintenance, and even safety from incident response planning to how a crane should move within the plant for maintenance work. Additionally, around the corner is the digitalenabled operator, where operations staff will have the ability to troubleshoot a plant problem with an office-based engineering colleague, via streaming video of the problem in question. The possibilities are vast and endless, but Brunei LNG is generally targeting the areas of visualisation, data analytics (optimise maintenance, plant operation or materials supply chain), digital twin (including engineering data) and digitalised operations (operator with mixed reality aids).
Digitalisation of course goes further than Brunei LNG, and the company works closely together with BSP and their digitalisation journey, sharing ideas and solutions to challenges so that they get the most out of the value chain. Together with new gas coming in 2026, digitalisation is certainly one of the biggest changes coming to Brunei LNG in its 50-year history and it is a space that will be heavily invested in.
The onset of the COVID-19 pandemic in Brunei Darussalam in March last year has brought about different sets of challenges to many businesses. Through these trials, Brunei Shell Marketing Company Sdn Bhd (BSM) has emerged stronger and more resilient through adaptive and capability-building measures that continue to solidify its presence and reliability as the main energy provider to the Sultanate.
BSM Managing Director Muhammad Norshafiee bin Dato Paduka Haji Abdul Jalil said that the business landscape has changed considerably in the past year, forcing them to adapt while running their business as usual. “It probably reframed the perspectives of a lot of people including us and allowed us to focus on areas that really matter and further strengthen those areas,” he said.
Throughout the toughest times, he said that BSM is now in a better position by gaining deeper understanding on key areas that really support them as a business that they need to have a core focus on.
“This puts us in a good footing for the years ahead,” he added.
At the peak of the pandemic outbreak last year, the Managing Director recalled that they all had to work from home for at least two to three months, where he said it has stress-tested their capabilities, proving that they could still work effectively and collaborate internally and externally.
“We continued on with no one in the office through digital tools and needed to be more innovative in our approach to keep our business running. So if we can work in those difficult periods, it proves that as the situation improves around the world, we will be in a strong position when we enter that period,” he added.
Being a part of everyone’s life in Brunei whether it is on land, sea or air, Muhammad Norshafiee said that BSM has also evolved along with the country and community over time.
“When you are in the business of providing energy and mobility, you need to move along with time and whatever powers the country and the people, that’s how our journey is interrelated with the country and community,” he said.
BSM achieved a milestone for its 60 years of operations in Brunei last year. The key highlight of this achievement is the uninterrupted security of supply in a safe, consistent and responsible way, said the Managing Director.
With their strong focus on safety, BSM has also maintained a strong safety record within their business, reaching over 6,000,000 hours without Lost Time Injury (LTI) while also playing an integral part in educating the public in terms of safety.
Last year saw the introduction of new fuel variants Shell V-Power to the public, and the Managing Director said they have had a very good response since its launch.
“A lot of people see the value in the new fuel variant and at the end of the day, Shell V-Power is more of a lifestyle choice. All our products are quality products – but as with anything in life, certain products offer more and what Shell V-Power does is offer more convenience and peace of mind for customers,” he said.
Since its launch in February last year, the data shows that BSM has a core audience who will only buy Shell V-Power, and the numbers are consistent.
“So these are the customers who really see the value which is good to see, and it is quite a sizable number so our plans moving forward is to expand that by rewarding them for their loyalty so that this core customer base grows,” he said.
Since the introduction of a pilot project for digital and card payments at some petrol stations last year, the Managing Director said that the overwhelming response from the public will see them expanding the feature to more filling stations in the future.
In line with the digital economy and Smart Nation initiatives laid out by the government, one of BSM’s key strategies is to move forward with digitalisation.
“As the community is fast-moving towards digital platforms, that’s something we need to fully embrace on, so what we are doing is end to end that covers both our internal and also customer-facing processes,” he said.
BSM is currently developing a mobile app that will be launched later this year, offering convenience of payments, rewards, as well as information on their products and services.
BSM remains fully committed to the energy transition to alternative forms of energy and is currently working closely with government bodies who will be carrying its pilot project on electric vehicles (EV).
The Managing Director said that they already have in place EV technology, platforms and solutions but are in the midst of aligning it with the pilot project, adding that they are also launching a non-fuel retail range of products and services soon.
BSM sees 2021 as the year to further strengthen and improve their customers’ journey through digital platforms, rewarding loyal customers and providing them with a more holistic experience. “We have been around for 60 years providing fuel and associated products and services to our customers, so this year is also the start of our energy transition journey as alternative fuels come to market, so we will be hopefully driving that for Brunei and also offering other products and services that are aligned with the mobility needs of our customers,” said the Managing Director.
A ship with temperature-controlled tanks intended to transport liquefied natural gas (LNG) is an advanced and specialised state-of-the-art system. There are approximately 360 LNG tankers around the globe, five of which are owned and managed by Brunei Gas Carriers Sdn Bhd (BGC).
Looking back at history, in the 1960s, gas reserves were discovered beneath the waters of Brunei Darussalam. With the discovery of this highly sought-after energy source, a large-scale liquefaction plant was established to process the gas after which the transportation of LNG to support economic growth in Brunei began. The delivery of LNG from Brunei to Japan began in 1972 with SS Gadinia, the first out of the seven G-Class vessels operating under Shell Tankers UK Limited.
In 1986, Brunei Shell Tankers Sdn Bhd (BST) was established to operate the seven G-Class vessels under the Brunei flag. Thus began the era of the B-Class fleet, with a change in name for all seven vessels reflecting the names of local fish and shellfish – Bebatik, Bekalang, Bekulan, Belais, Belanak, Bilis and Bubuk – with average cargo capacities ranging from 75,000m³ to 77,000m³.
The B-Class vessels played a major role in Brunei’s export-oriented energy sector, which ended in 2018 when the last vessel, Bebatik, retired, ending the 46-year B-Class era. With their end, that mantle was passed to BGC’s A-class vessels to continue the legacy.
With the demand of LNG growing rapidly worldwide, BGC was incorporated in 1998 as a joint venture between the Government 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, Shell Gas BV and Diamond Gas Carriers BV.
Today, BGC continues to provide a top quartile safety and reliability performance while being competitive in the LNG maritime transportation industry, as it aspires to further establish itself as Brunei’s centre of maritime excellence.
BGC currently owns five A-Class vessels namely Abadi, Arkat, Amali, Amani and Amadi with capacities ranging from 137,000m3 to 154,800m3, manned with local talent fully trained and internationally certified in accordance with the International Maritime Organization standards.
LNG is one of Brunei’s major exports, contributing significantly to the nation’s economy. Since the establishment of BGC, the company has been a vital force in contributing to the Brunei LNG value chain, delivering LNG on behalf of their charterer to Brunei’s international customers in the Asia- Pacific region including Japan, China, Malaysia and Taiwan.
In line with its primary mission of providing safe and reliable delivery of LNG to Brunei’s overseas customers and also the aspiration of the Government of His Majesty to see more locals taking up jobs in the oil and gas industry, BGC has increased their efforts to strengthen its entire workforce and support local talent growth with proper personal development of its people.
In 2011, BGC began operating its own Fleet Management department where all operational aspects within Brunei’s LNG Fleet are managed by a team consisting of local BGC staff and Shell International Trading and Shipping Company Limited (STASCO) staff working in close collaboration.
The aim was to transfer knowledge and enable BGC to prepare and establish itself as a competent and reliable ship owner and manager in its own right.
On June 24, 2019, BGC was awarded its Document of Compliance and became the nation’s first local deep water shipping company to own and manage its own fleet of vessels.
BGC believes that behind every safe and reliable operation is their most important asset – their people. A key aspect of BGC at present is the development of Bruneian seafarers. The company has been very active in identifying and grooming its local talent to become senior marine professionals as the company recognises the importance of skilled talent to be the backbone of one of the country’s main economic drivers, LNG.
While BGC focusses on developing Bruneians to fill key leadership positions in the company, it continues to maintain an external mindset and ensure adequate transfer of knowledge to prevent the Bruneian seafarer skill-pool from becoming insular and isolated from developments and latest practices from other parts of the industry. This strategy is in line with their aim to be the leading developer of local shipping and maritime skills, in support of Brunei Vision 2035.
Looking ahead, BGC aims to grow and diversify its business to support ongoing developments and provide highly skilled and developed maritime expertise to meet the local skill pool demand while establishing itself as a centre of maritime excellence.
Since the discovery of the Seria field in 1929, Brunei has forged an enduring partnership with Royal Dutch Shell. After more than 90 years, Brunei Shell Petroleum Company Sdn Bhd (BSP) remains the backbone of Brunei’s economy and a major contributor to the nation’s oil and gas revenue and export earnings. 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.
With the support of its shareholders, BSP aims to continue powering Brunei’s future for generations to come. BSP has signed several key commercial agreements to supply natural gas to Brunei Fertilizer Industries (BFI) plant and crude oil to Hengyi refinery.
These partnerships will further strengthen BSP’s commercial portfolio and its reputation as a reliable oil and gas supplier within the region and beyond. Together with its talented workforce and “I am BSP” mindset of being accountable, focussed and collaborating, BSP strives to continue supporting the nation in realising Brunei Vision 2035.
Established in 1962, Brunei Oxygen Sdn Bhd (Brunox) is jointly owned by Air Liquide and QAF Brunei. Brunox is the country’s leading supplier of industrial gases, serving a wide array of customers including factories, hospitals, laboratories, oil and gas companies and agrifood industries.
Apart from its core business of producing industrial gases, Brunox also offers fabrication, installation and commissioning of gas pipeline systems; gas-related onshore and offshore services; welding and cutting equipment; and training and management programmes.
In 2018, Brunox launched the first air separation plant in Brunei. Located in Kuala Belait, the plant’s construction took a year and a half to complete.
The plant is able to produce 40 tonnes of liquified oxygen, nitrogen and argon targetting to meet local demand with potential to be exported regionally. Before the launch of its air separation plant, Brunox imported tonnes of industrial gases daily to serve its customers.
With the importance of safety among working members to ensure that everyone goes home safely at the end of the day, a tremendous effort has been made in Brunei Darussalam to ensure that its safety standards are not only maintained but are also improved for the benefit of the nation’s progress towards safety as a priority.
Megamas Training Company Sdn Bhd is one such company that has a deeply embedded history in training and safety. Headquartered in Belait District with a branch in Kiulap, Megamas specialises in health, safety and environment (HSE) training and consultancy.
They are the first integrated safety training establishment to register in Brunei in 1989, focussing on safety in the oil and gas industry. Since then, Megamas has expanded its expertise, providing extensive training courses and consultancy services in line with international safety standards and expectations in all fields of work.
Megamas is the registered training provider for the Ministry of Education; Ministry of Defence; Safety, Health and Environment National Authority; and Maritime and Port Authority of Brunei Darussalam. The company has a wide client base not only in Brunei but also the Asia-Pacific region and as far as Bangladesh, the Middle East and the United Kingdom (UK).
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 worldwide recognition and achievements to boot.
Megamas is one of the only three training providers in Southeast Asia and among the only 25 training providers in the world to have achieved the Gold Learning Partner status, awarded by the National Examination Board in Occupational Safety and Health (NEBOSH) from the UK. It is a status awarded to only those who have exceeded the expectations against the learning excellence principles.
In 2015, Megamas was awarded the Best Training Provider by OPITO, affirming its global industry standards in oil and gas safety, skills and competence. Megamas is also ISO 9001:2015 certified.
Megamas 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. Among its notable courses is the OPITO approved Tropical BOSIET (T-BOSIET) course, jointly developed by OPITO and Megamas in 2000 and is now being used worldwide.
Other courses include the NEBOSH International General Certificate (IGC) and Chartered Institute of Environmental Health (CIEH) Certificate in Food Safety. These were introduced in 2004 and 2011 respectively. The globally recognised NEBOSH certificate is an essential qualification for individuals who intend to work in the HSE field.
Megamas also recently introduced new courses. In 2019, Megamas conducted its first NEBOSH Environment Awareness course, which aimed to improve an organisation’s environment performance.
The course is suitable for anyone who needs to gain an understanding of environmental issues at work as part of their job or as an awareness training. It will also benefit organisations who are seeking certification or implementation of a successful environmental management system such as ISO 14001.
With 2020’s dark tidings being the rise of the COVID-19 pandemic, Megamas has employed a number of strategies through its courses to ensure public safety under the Ministry of Health guidelines.
Megamas has introduced new package course related to first aid, firefighting and food safety. The package course emphasises on the safety and hygiene requirements at offices, workshops, schools, factories and restaurants, among others, especially during the COVID-19 period.
A number of online courses have also been introduced in 2020, such as Warehouse Safety, International Minimum Industry Safety Training (IMIST) and Dangerous Goods, to name a few. Megamas courses are accredited to international standards set by respective international bodies, such as the Institute of Occupational Safety Health (IOSH), NEBOSH, Royal Society for the Prevention of Accidents (ROSPA), Offshore Petroleum Industry Training Organization (OPITO), St John Ambulance, Lifting Equipment Engineers Association (LEEA), Highfield, British Safety Council, and International Maritime Organization (IMO).
The courses are categorised into 11 training disciplines: Safety, Environmental, Defensive Driving, First Aid, Fire Fighting, Specialised, Material Handling, Offshore Survival, Occupational Health, Permit to Work and Scaffolding Training. Many of these courses are carried out at Megamas training centres in Brunei or its clients’ locations, either locally or overseas.
Many of Megamas instructors are also consultants, and they are knowledgeable in the latest industry developments. With its in-depth understanding of the workplace challenges, Megamas helps identify and solve issues faced by its clients.
Megamas maintains an open approach and dialogue, forming a long-lasting partnership with their clients. These partnerships often span a number of projects and years, a testament to the quality of services provided by Megamas. Services offered by Megamas include helping its clients to create an HSE Management System and coaching its clients on the implementation of HSE policies.
Megamas also conducts Environment Impact Assessment, Environmental Baseline Study and Environmental Monitoring and Management Plan for its clients.
Having marked more than 40 years of experience in the field of promoting safety as a priority, Megamas is keen to continue exploring other options to enable the teaching and instilling of a safety-focussed mindset for the workforce.
Among its future plans is to increase the number of HSE online courses and to look into potential courses that will fit the needs of its clients.
Megamas also strives to further expand its services to ensure all industries have a high standard of safety, as well as to gain more international recognition and accreditations for its courses.
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