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.
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 for more than 90 years.
The Ministry of Energy, Manpower and Industry was renamed and restructured to the Ministry of Energy on November 18, 2019 to focus on energy matters.
The Petroleum Authority of Brunei Darussalam (PA) is a statutory body tasked by the Ministry of Energy to regulate and monitor the upstream, midstream and downstream oil and gas sector, in addition to acting as custodian of petroleum data in Brunei Darussalam.
The establishment of the PA serves as an important milestone in the development of the oil and gas sector in Brunei Darussalam 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. The statutory body will also serve as a technical resource to the government on petroleum matters.
The energy sector continues to be a vital sector for the country. It has contributed about 58 per cent to the gross domestic product (GDP) and 90 per cent exports, Minister of Energy Dato Seri Setia Dr Awang Haji Mat Suny bin Haji Mohd Hussein shared during the 17th Legislative Council (LegCo) session in March last year.
He also shared that the COVID-19 outbreak and unstable global market price of oil and gas affected the country’s economy and promoted a look into the sector’s needs and sustainability.
At the LegCo session, the minister noted that the Pulau Muara Besar (PMB) Refinery Plant had begun its production to supply for the domestic market. The project provided about 667 jobs for locals and enabled the country to export at least USD3 billion worth of products from the refinery.
He shared that they will be emphasising on global efforts towards a clean energy transition. The Global Hydrogen Supply Chain Demonstration Chain at Sungai Liang Industrial Park (SPARK) was a clean energy milestone made by the country in 2020, proving that long-distance transportation in a stable form was feasible.
The ministry will continue to support the research and development efforts in the use of alternative energy, the minister said, adding that the global economic recovery will further increase the demand for natural gas energy resources in regions including Southeast Asia and Europe.
In the 2021/2022 financial year, the ministry will further strengthen the production of liquefied natural gas (LNG) to meet those regional demands. Other priorities of the ministry will be to develop the downstream energy sector further by ensuring the growth of industries provide value-added to the oil and gas resources for the country.
The minister said the Brunei Fertilizer Industries Sdn Bhd (BFI) plant would start its operation in the third quarter of 2021. He also noted that the year 2021 would be critical for the development of Hengyi Industries Sdn Bhd Oil Refinery and Petrochemical Plant in PMB. The second phase is scheduled to take place in 2022.
Furthermore, he said the ministry will look to maximise on the percentage of locals in the workforce, involvement of local companies on the project’s development, ensure safety in its operation, reducing further the impact of the industry on climate change. The ministry will also work closely with key operators in the upstream sector to continue projects halted due to the pandemic.
Meanwhile, it was revealed last year that decommissioning and restoration (D&R) will be one of the major activities for the country’s oil and gas sector. As was reported in June 2021, Brunei’s oil and gas industry has operating for over 90 years and has matured. A growing number of oil and gas platforms and facilities are coming to the end of their expected life because they no longer have enough economically recoverable oil and gas reserves to develop and produce.
With regards to D&R, it was reported that wells need to be closed and made safe, and platforms are expected to be removed and recycled. The estimated cost will reach billions of Brunei dollars in the next 20 to 30 years.
The importance of ongoing D&R activities was highlighted by Permanent Secretary at the Ministry of Energy Haji Azhar bin Haji Yahya as Interim Managing Director of PA during the Decommissioning and Restoration Forum held in June last year as part of the Energy Theme Week of the Brunei Mid-Year Conference and Exhibition (MYCE) 2021.
Implementation of D&R activities in the country will be guided by the national Exploration and Production D&R Guidelines produced by the Petroleum Authority of Brunei Darussalam, said Haji Azhar. “On costs, there is still not enough D&R data and experience in forecasting, but it could be reduced through lessons from previous D&R, new technologies, and clustering approach on D&R.”
One potential industrial spin-off of the decommissioning activities is repurposing of ‘scrap’ materials such as carbon steel. This will generate spinoff income and products, in addition to reducing industrial waste. “As the collection of scrap material services is readily available, we have an opportunity to explore further, beyond collecting, and integrate a circular economy approach by venturing into recycling, repurposing or reusing the waste materials.”
The rigs to reefs scheme is another activity to complement the D&R repurpose by converting decommissioned offshore oil and petroleum structures into artificial reefs.
He shared that Brunei has had a rigs to reefs policy since 1988 where 13 offshore structures have been used as artificial reef and have now become lively marine habitats.
Surveys have found an aggregation of important commercial food fish have been attracted to the artificial reef, functioning as a feeding area as well as shelter area. A clear spin-off from rigs to reefs is eco-tourism such as recreational diving.
In addition, D&R activities hold an influence in reversing the impact of environmental degradation as a result of past offshore and onshore activities. With the degradation of natural reefs and its ecosystem due to overall global increase in ocean and sea temperature and acidity through climate change, artificial reefs play an important role to “re-wild” the sea and make the marine ecosystem lively again.
It is anticipated that the spin-off from D&R will generate business opportunities and indirectly will create more job opportunities, which will boost Brunei’s socio-economy.
The importance of renewable energy as part of the country’s energy mix under the third strategic objective of the Ministry of Energy’s Strategic Plan 2020-2025 was highlighted by Deputy Permanent Secretary at the Ministry of Energy Pengiran Haji Jamra Weira bin Pengiran Haji Petra at the Renewable Energy Policy and Development Forum held in June last year in conjunction with the Brunei MYCE 2021.
“Our green energy strategy aims to achieve long-term energy security for the country and its environment. We will continue to pursue growth in the renewable energy sector, especially in boosting the nation’s solar energy capacity.”
“In continuously looking into ways to diversify the nation’s energy mix, Brunei Darussalam is proud to be part of the global movement in the field of hydrogen energy. We have collaborated with Japan on the world’s first global hydrogen supply chain demonstration project, and successfully tested the transportation of hydrogen energy under atmospheric conditions to Kawasaki, Japan on December 18, to be used as fuel for their power generation.”
As part of the global energy transition and meeting the country’s energy security needs, abundant solar energy must be harnessed to supplement the use of natural hydrocarbon resources, said the deputy permanent secretary.
“Our green energy strategy aims to achieve long-term energy security for the country and its environment. We will continue to pursue growth in the renewable energy sector, especially in boosting the nation’s solar energy capacity,” he said.
He added that Brunei has almost five megawatts (MW) of solar capacity, coming from the various of solar projects all over the nation. This includes off grid solar systems for eight longhouses in the rural areas of Belait and Tutong districts.
“We aspire to achieve at least 10 per cent renewable energy contribution in our power generation mix within the next five years. The establishment of the first large scale solar plant in the country, the 30MW flagship project slated to be in operation in the near future, will be instrumental, towards achieving the national target by 2025.
“On the plan to achieve the 100MW in the next five years, we will begin our journey with the land-based solar farm at TSB, as an extension to the existing plant, followed by a flagship project at Sungai Akar or Belimbing Subok, then to Bukit Panggal, Gadong, Batu Apoi, Belingus and lastly floating solar at Mengkubau Dam and other reservoirs.
“To facilitate the growth of renewable energy, we are leveraging on several renewable energy policy tools such as the net metering programme, reverse auction, and the renewable energy portfolio standard. We are also stepping up our efforts to understand the larger scale integration of renewables and alternative energies into our power system, deployment of utility scale energy storage system, as well as other promising technologies such as floating solar, offshore wind, and hydrogen energy.”
The ministry aspires to achieve at least 30 per cent renewable energy contribution in the nation’s power generation mix by 2035, said the deputy permanent secretary.
He added that achieving the long-term target requires a thorough consideration, especially on the intermittency, as well as on land use between solar farms and other high value economic activities. Their research has indicated significant potential for floating solar in the country. However, more works need to be done before they can establish feasibility of scaling up energy resources from floating solar. The ministry will continue to work with higher educational institutions, industrial players, local contractors and consultants, international organisations, and dialogue partners to achieve their target.
The country’s first climate change policy was launched by the Brunei Darussalam National Council on Climate Change in 2020. Dubbed the Brunei Darussalam National Climate Change Policy (BNCCP), the policy aims to pave the way towards low carbon and climate-resilience for a sustainable nation. The policy focusses on 10 core strategic areas with objectives that are to be implemented in the next 15 years which 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.
The 10 key strategies of the BNCCP will be adopted with 2035 as a general target year.
Under the key strategy for industrial emissions, the country will be reducing overall emissions in the industrial sector through ‘Zero Routine Flaring’ and to ensure it is ‘as low as reasonably practicable’ (ALARP). 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 is to increase 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 supply and demand management of electricity consumption; while under carbon pricing, impose price on carbon emissions; and for waste management, reduce municipal waste to landfills to one kilogramme person per day.
Under the strategy for climate resilience and adaptation, Brunei is looking at increasing capacity to adapt to climate impacts and in achieving 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 of reducing greenhouse gas emissions to more than 50 per cent in 2035 in comparison 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 Brunei Energy Industry Integrity Pact was established in 2017 with 10 founding members made up of established oil and gas companies in Brunei. As of November 2021, the pact is made up of 88 members comprising both international and local companies. The pact contains 10 essential principles that companies shall incorporate into their ways of working to monitor integrity and compliance risks in the course of their operations.
By agreeing to the pact, the industry is conveying 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.
Members of the Brunei Energy Industry Integrity Working Group, comprising employees from the oil and gas operators who jointly authored the Integrity Pact principles and are tasked with management and oversight of the companies’ compliance efforts, work to ensure the companies abide by the agreed principles.
The companies will partner with the Ministry of Energy and the Anti-Corruption Bureau to maintain alignment and foster continued collaboration and dialogue in the area of business integrity. 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.
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 worldwide.
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.
Since the late 1960s, MC has participated in various liquefied natural gas (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 the LNG business, MC is also 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 order to promote the development of renewable energy in Brunei, MC in collaboration with the Brunei Government embarked on a solar power plant project. Commissioned in 2010, the 1.2-MW Tenaga Suria Brunei (TSB) solar plant located in Seria was used as a case study on the overall feasibility of solar energy in the country.
The solar power generated from the TSB plant is equivalent to an annual electricity consumption of 200 households. The plant contributes about 0.14 per cent of the country’s total power generation capacity, operated the Department of Electrical Services, Ministry of Energy.
Today, there is an urgent need for decarbonisation initiatives in response to global climate change. The MC Group will continue to fulfil its responsibility as an active player in industries including resources and energy by maintaining a stable supply of energy, such as natural gas, while working to achieve a carbon neutral society.
Brunei LNG Sdn Bhd (Brunei LNG) made history as the first company in the Western Pacific to begin large-scale liquefaction of natural gas when it was established back in 1969. Brunei LNG is one of the leading suppliers of liquefied natural gas (LNG), primarily supplying LNG to customers in the Asian region via five LNG vessels owned by Brunei Gas Carriers Sdn Bhd. To date, Brunei LNG has delivered more than 7,400 cargoes and is proud to declare that it has not missed a single cargo delivery since operations commenced 50 years ago.
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 for domestic sales by Brunei Shell Marketing.
As a 52-year-old asset, Brunei LNG carries out continuous rejuvenation works to ensure the plant is continuously upgraded, keeping in line with safety standards and extending its lifetime while still maximising gas intake from its gas suppliers into the plant and delivering to its customers.
In 2021, despite an extremely challenging year due to COVID-19, Brunei LNG delivered 100 per cent of its committed contractual cargoes. The company also expanded its customer base through the sales of spot cargoes.
As the world transitions to a low-carbon and climate resilient future, Brunei LNG is committed to being a sustainable and responsible energy partner together with Brunei Darussalam in the global journey towards energy transition. LNG is the natural partner for renewables and a bridging fuel in the energy transition journey, especially in compensating for dips in solar or wind power.
Brunei LNG has been one of the key pillars of the economy of the country over the past five decades and remains steadfast in its commitment to support Brunei Vision 2035. Longterm strategies and goals have been established to increase the number of local Bruneians in key positions, enhancing competencies and local business participation.
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 93 per cent Bruneianisation with 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 ensure that every individual will have the opportunity to reach their maximum potential and become a productive workforce ready to meet the nation’s manpower needs.
Brunei LNG is 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 non-technical roles. In October 2020, Brunei LNG celebrated another diversity milestone when the company appointed its first Bruneian female Managing Director (MD) and CEO Hajah Farida binti Dato Seri Paduka Haji Talib in its 50-year history, and the first Bruneian female MD and CEO across the Brunei Shell Joint Ventures (BSJVs).
In 2021, as part of its corporate social responsibility (CSR), Brunei LNG supported several youth development education programmes and activities, in line with Brunei Vision 2035 aspiration for an educated, highly skilled and accomplished people.
Brunei LNG held its annual 2019 Academic Excellence Awards in June 2021 where 200 students, teachers and schools from KB were presented with awards for achievements in academic excellence.
In line with Brunei LNG’s efforts to support and develop STEM capabilities in the country, the company 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 continues to support the Youth Empowerment Summit (YES!) as Platinum Sponsors for a third consecutive year.
The three-day virtual event held over three weeks with the theme Resilience Bootcamp saw around 700 participants logging in from 35 different schools nationwide with a line-up of distinguished international speakers and prominent local speakers. The summit provides a meaningful platform for young people in the country to learn from outstanding role models on how to manage adversities, advocate for change and communicate with empathy, openness and kindness.
Brunei LNG is passionate about emerging talent, nurturing, and developing youth, and this can be seen in its continued support of the Youth Empowerment Summit. The youth are the future, and it is important to nurture and equip them with the adequate leadership experience, skills, and networks they need to deliver positive change to the country and beyond.
Brunei LNG’s social investment initiatives in the second half of 2021 were aimed at supporting 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 in its tremendous COVID-19 relief response to the nation. Brunei LNG’s social investment strategy ‘Save Lives, Save Minds and Save Futures’, looks at short-term, medium-term, and long-term initiatives to support Brunei Darussalam in the fight against COVID-19.
As part of its ‘Save Lives’ short-term strategy, Brunei LNG paid for two chartered flights bringing 500,000 antigen rapid test (ART) kits into the country, of which 150,000 ART kits were purchased by Brunei LNG. Some 100,000 of these kits were donated to the Ministry of Health (MoH) to be used across the country and 50,000 are for Brunei LNG to use to keep its essential staff and business partners safe on site. Brunei LNG also supported the setup of several national isolation centres by donating electrical appliances, such as air conditioners and fridges.
Under its ‘Save Minds’ medium-term strategy, Brunei LNG distributed over 2,000 care packages to patients and frontliners across the country.
In line with its ‘Save Futures’ long-term strategy Brunei LNG donated 586 laptops and accessories to the Ministry of Education (MoE). The donation hoped to close the digital gap for underprivileged students across the country to have access to online learning and digital tools, so they are digitally literate, especially during the second wave of the pandemic. This is in support of the MoE’s donation drive to reach 5,000 digital devices.
Brunei LNG’s support for the nation during the second wave of COVID-19 was made possible through staff and company monetary contributions, raised through the BLNGolden (pronounced BLNG Golden) Hearts COVID-19 Support Fund, that was set up last year to support the MoH’s incredible “whole-of-nation” efforts through these difficult times.
Regionally, Brunei LNG was the joint lead sponsor for the series of ASEAN Business Advisory Council events and roundtables in 2021 including the ASEAN Business Investment Summit and ASEAN Business Awards, as part of Brunei’s ASEAN Chairmanship. Brunei LNG sees great value in supporting platforms like these as they encourage ASEAN entrepreneurs to grow, build capability and become growth engines for the region to be equipped for the future.
The theme ‘Building Our Sustainable Digital Future’ goes hand in hand with the efforts being explored in Brunei LNG such as data digitalisation and the company’s journey towards a more sustainable future. For Brunei LNG, this demonstrates its commitment to being a sustainable and responsible energy partner together with Brunei in the global journey towards energy transition. Supporting platforms like this help Brunei LNG grow as a business and reaffirms its commitment to the nation in achieving Brunei Vision 2035 ambition towards a dynamic and sustainable economy, and a Smart Nation.
As for Bruneianisation and Local Business Development (LBD), Brunei LNG and business partners inked an agreement to assist its business partners to meet their Bruneianisation and LBD targets by supporting their HR resourcing to provide a pool of skilled individuals that were capable of upskilling to other expertise in the business. This was done in close consultation with the Manpower Industry Steering Committee and Manpower Planning and Employment Council. As part of ASEAN BAC Brunei’s Legacy Project, Brunei LNG also supported the HIRED (Harnessing Impact with Resilient Employability Digitally) initiative.
The MD and CEO of Brunei LNG has the ambition to build a capable, highly skilled Bruneian workforce to deliver Brunei Vision 2035 and continue being a key contributor in the ASEAN region. To deliver the ambition, a social investment flagship programme called EmployAbility was created by Brunei LNG and launched in February 2022, alongside the Pilot Apprenticeship Programme. Brunei LNG will be collaborating on the programme with four business partners, Adinin Works and Engineering Sdn Bhd, Tendrill International Sdn Bhd, Zainal Daud Sdn Bhd and Exceltech Solutions Sdn Bhd.
The aim of EmployAbility is to increase employment and increase the ability meaning skills and competence through capability building of the local workforce. EmployAbility aspires to build a sustainable local workforce to replace foreign workers; contribute to lowering national unemployment; and provide upskilling and reskilling of available jobseekers through training and coaching.
For the community, Brunei LNG continues to contribute to the operation of the Liang Lumut Recreation Club (LLRC) since handing over the club to the community, which functions as a full-fledged recreational facility for residents in Mukim Liang used for recreational, sports, educational and religious events, and of recent, for the drive-thru distribution of pension payments to retirees and derivative pensions residing in Liang by the village head of Kampung Lumut II.
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.
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 and the third largest LNG plant at the time.
Brunei LNG’s first customer was Osaka Gas Japan and the first LNG cargo was delivered 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 continues to market future LNG volumes for 2023 and beyond, expanding and diversifying its existing customer base.
Brunei LNG produces and delivers LNG, which is the cleanest fossil fuel, set to overtake coal as the world’s second largest energy source. Although renewables continue to gain traction, they are still limited in their ability to provide full energy coverage. This is where LNG comes in, with power generated from LNG emitting 50 per cent less greenhouse gas (GHG) emissions, compared to coal. It is the natural partner for renewables and a bridging fuel in the energy transition journey, especially in compensating for dips in solar or wind power.
Brunei LNG recognises the role that it plays in decarbonisation as a key partner in energy transition and in supporting the Brunei Government’s commitment towards a low carbon and climate resilient nation via the Brunei Darussalam National Climate Change Policy (BNCCP).
Brunei LNG is transforming the way it operates as a business, by reducing GHG emissions, making the plant more energy efficient and integrating sustainability with business strategy. Brunei LNG has already taken steps to improve the efficiency of its operations by maximising heat from Lumut Power Station for steam generation in a bid to reduce its GHG intensity. Brunei LNG aims to shift 10 per cent of its power generation source from fuel gas to renewable energy by 2025 as part of the company’s initiative to become a more sustainable business.
In addition, the company has been championing restoration of Badas peatlands as part of its effort in protecting the environment to reduce recurrence of fire in the area.
In July 2021, Brunei LNG delivered its first carbon neutral LNG cargo making it the first LNG supplier in the Southeast Asian region to do so. The integrated collaboration between Brunei LNG, Shell, and Osaka Gas marks an important milestone in Brunei LNG’s journey as a key partner for energy transition, enabling customers to move towards their net zero ambition by compensating the full lifecycle CO2e emissions of the cargo with carbon offset from nature-based solutions.
Brunei LNG’s carbon neutral LNG cargo offering is one of the ways to transform the business to be more sustainable, keeping in pace with society’s ambition to tackle climate change.
As the longest running LNG plant in the world, innovation and digitalisation is, and has always been, a core part of Brunei LNG’s operations. Brunei LNG’s investment and commitment in digitalisation is to simplify its processes across the value chain and does so by working closely together with industry leaders.
Similar to the company’s pioneering roots in the LNG space, Brunei LNG is pioneering in the digitalisation space, whereby its 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 liquefied.
Brunei LNG is progressing to create a digital twin (a digital replication) of its existing assets, enabling an interactive workplace version for learning, maintenance and emergency response. A digital twin can enhance key day-to-day operational activities such as the tuning of controls and provide insightful feedback in establishing constraints associated with advanced process control algorithms to help optimise LNG production. This will help in areas of operations, maintenance, and even safety from incident response planning to planning 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. A great example of this is the Digital SMART Helmet, used during the March 2021 Turnaround campaign. The Brunei LNG Maintenance and Turnaround team had procured the RealWear smart helmet to allow voice and video calls with others remotely which included externally located vendors and subject matter experts who could not physically be on-site due to COVID-19 restrictions.
Brunei LNG is actively investing in building the digital capability for the organisation and its people, upskilling local Bruneians to be digitally savvy and digitally literate creating a highly skilled workforce ready for the future of work.
An objective for accelerating digitalisation to allow early efficiency gains and consequently supporting cost management and bottom-line, thereby contributing towards Brunei Vision 2035 goals of a dynamic and sustainable economy.
In the period of 2020 and 2021, when the COVID-19 pandemic took over the world, numerous challenges were faced by all sectors of the economy and all levels of society. This included disruptions in the supply chain, supply of expertise and skilled workforce from overseas, and low oil prices in 2021. Despite these challenges, Brunei LNG maintained business continuity throughout the second wave of the pandemic, allowing the company to contribute over BND1 billion to the nation.
As a business and as a Bruneian company, Brunei LNG is committed to sustain its operations and continue to be a key contributor to the nation’s economy. Brunei LNG is an engine of growth for the country and its continuous revenue generation is essential in powering the progress of sustainability efforts in Brunei Darussalam and in building future capability. To make this happen, the next two years are critical to Brunei LNG and Brunei’s LNG footprint in the world.
Brunei Shell Marketing Company Sdn Bhd (BSM) was initially called the Shell Marketing Company of Borneo Ltd which began its operations in 1959.
From 1974, the company was called the Shell Marketing Company of Brunei Ltd until 1977, when Brunei Shell Marketing Company Ltd was formed as a joint venture between the Brunei Government and Shell Overseas Holding Limited.
BSM operates from the main office in Bandar Seri Begawan, Muara Terminal and Brunei International Airport Aviation Depot as the sole supplier of fuel in Brunei. BSM introduced its new logo in 2001 and moved into its current location which is at the PGGMB Building in 2004.
In June 2021, BSM held a lubricant convention event with its business partners and stakeholders to share the latest industry trends, provide updates and allow participants to enhance their knowledge on Shell’s latest engine oil technology.
Through the Lubricants Convention initiative, BSM conveyed the business challenges faced especially during the COVID-19 outbreak. BSM Managing Director Muhammad Norshafiee bin Dato Paduka Haji Abdul Jalil, in his keynote address, said that BSM has witnessed how the world has integrated the use of technology and realised the need to evolve to stay ahead of the game, and therefore accelerated their digitalisation plans.
The event also saw the launching of the SHARE Lite App – a trade loyalty programme exclusively for BSM customers – as part of the digitalisation plan which the managing director said will see more digital services launched in the months to come.
He said by implementing seamless and innovative digital solutions, not only will it help simplify interactions, but also allow BSM to offer more value to customers that drive customer satisfaction, such as through analytics, artificial intelligence (AI) and online marketplace.
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 as 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.
BSP supplies 350,000 barrels of oil and gas equivalent every day to countries such as Japan, Korea, Indonesia, Australia and numerous others around the world. It operates an extensive and complex infrastructure on land and offshore, with over 200 offshore structures linked by over 5,000 kilometres of pipelines, recovering oil and gas from over 4,500 individual reservoirs produced through more than 800 wells.
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 such as to supply natural gas to Brunei Fertilizer Industries Sdn Bhd (BFI) plant and to provide crude oil to Hengyi refiner.
These partnerships will further strengthen BSP’s commercial portfolio and its reputation as a reliable oil and gas supplier within the region and beyond.
As the country’s largest oil and gas company, BSP also highlights its efforts towards actively increasing its portfolio through active exploration including onshore and offshore drilling activities. BSP has also expanded its offshore exploration activities by embarking on deepwater projects.
With state-of-the-art seismic acquisition, BSP has been able to explore more opportunities and pursue growth, supported by a diverse and highly qualified skill pool. Together with its professional 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; as well as 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 local production, Brunox is in a better position to meet the growing needs of its customers, create job opportunities, enhance local technical competencies and contribute towards the development of Brunei economy.
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 the 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.
The 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.
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.
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.
Brunei Darussalam has a rich maritime heritage, with liquefied natural gas (LNG) shipping at the forefront of the country’s trade and economy. Established in 1998, Brunei Gas Carriers Sdn Bhd (BGC) transports the country’s LNG resources to primarily Japan and China, in addition to countries such as France, Kuwait, Australia, Malaysia and Thailand.
BGC owns four A-Class vessels (Arkat, Amali, Amani and Amadi) with the capacity ranging from 147,000m3 to 154,800m3. Business opportunities for BGC are currently centred on the provision of services to Brunei LNG as the company aspires to develop its services and expand its portfolio. These also go hand in hand with development of local Bruneian capability to run and manage the company.
In 2019, BGC became the first local deep water shipping company to receive its Document of Compliance by the Maritime and Port Authority of Brunei Darussalam (MPADB). Abadi was the first vessel to be managed and operated exclusively under BGC’s safety management system.
By 2020, all BGC A-Class vessels were issued with their Safety Management Certificates (SMC) and International Ship Security Certificates (ISSC) which allows BGC to fully manage the vessels.
While the maritime industry is mostly dominated by men, BGC offers equal opportunities to women wishing to pursue a career at sea. BGC welcomed its first female officer following her successful cadetship and subsequent promotion in August 2020.
In its support of ASEAN’s role in building a sustainable future, BGC actively participated in the ASEAN Business Investment Summit (ABIS) 2021. BGC Managing Director Pengiran Shamhary bin Pengiran Dato Haji Mustapha was part of the panel to discuss key ideas and solutions to help advance ASEANS’s digital economy aspirations.
BGC also participated in the ASEAN Energy Business Forum (AEBF) 2021 in collaboration with Brunei Shell Petroleum and Brunei LNG as industry co-hosts. The managing director in his opening remarks for the panel discussions shed some light on the rising trend of ASEAN total trade which has also been directly linked with improved shipping connectivity. At the same time, with the call to transition to low-carbon solutions for a less carbon-intensive future there has also been observed growth in the demand for smallscale LNG shipping, LNG-to-power solutions, and ship to ship transfer requirements that are driven by increasing energy needs and opening of new LNG markets spurned by the transition, away from the more traditional coal or fuel oil.
A key aspect of BGC at present is the development of Bruneian seafarers from cadet level all the way up to senior management according to international standards, making them marketable in the global arena and setting the benchmark for the maritime industry in Brunei.
Programmes offered by BGC range from the training of new cadets to professional career development training, in addition to leadership and coaching programmes which aim to instill leadership qualities to all levels of leaders based on the five BGC leadership elements and to achieve overall improvement in job performance.Programmes offered by BGC include the Cadetship Programme, Higher Ticket Programme, Professional Development Programme, Digital Literacy Programme, Contract Management Training, Leadership Programme and Coaching Programme.
Within the past two years, BGC has signed several agreements to develop its workforce and the maritime industry in Brunei, namely with the Brunei Maritime Academy under the Institute of Brunei Technical Education (IBTE), Singapore Maritime Academy under the Singapore Polytechnic, Malaysia Maritime Academy (ALAM) and Megamas Training Company Sdn Bhd.
Since the first wave of COVID-19 in 2020, BGC has constantly been adapting to the demands of the shipping industry in the pandemic. BGC embraced new ways of operating and has since continued to demonstrate its resilience. BGC currently has robust standard operating Procedures (SOPs) in place in addition to the measures put in place by the Brunei Government. As BGC operates internationally, travel restrictions imposed by governments around the world have created significant hurdles to crew changes and repatriation of seafarers.
The second wave of the pandemic has further compounded the issue of long tours for BGC seafarers due to the additional measures imposed, following the local transmission cases. What used to be a tour length of three to four months has extended to up to six months or more with no shore-leave. BGC subsequently adjusted its operations and introduced new procedures to ensure that more frequent ship crew changes can occur, which is paramount for safe operations and mental wellbeing of its seafarers particularly during the pandemic. Despite these challenges, BGC continued to operate safely and reliably and has not missed any of its deliveries.
With the evolution of LNG shipping technologies and recognition that carbon management is essential to counter the climate change implications of the world’s increasing energy use, BGC continues to implement ways to reduce carbon emissions and its impact on the environment.
This involves adopting more energy-efficient practices and technologies that would make BGC’s future fleets more environmentally sustainable. In pursuit of this goal, four of BGC’s ships are equipped with Dual Fuel Diesel Electric Engines (DFDE) that are at least 30 per cent more efficient than its previous steam ships. The company’s compliance to fuel sulphur cap regulations had also helped to further reduce carbon emissions. LNG will play a long-term role in the global clean energy transition, driving decarbonisation and aiding the transition to future fuels.
With the pandemic still ongoing, BGC recognises that COVID-19 is not going away any time soon and is preparing for “long COVID” especially in terms of the new normal for crew management and administration, safety operations and mental wellbeing.
Moving forward, BGC continues to focus on delivering its promise of ensuring safe and reliable shipping operations in line with its mission of ‘Developing our nation’s resources for safe, reliable, and sustainable maritime transportation’.
Schlumberger performed its first wireline electric log in Brunei Darussalam on December 29, 1935. In 2021, the company proudly celebrated the 85th anniversary of its relationship with Brunei Darussalam and its oil and gas industry.
Throughout its operations in the country, Schlumberger has continuously supported the development of Bruneians. Since hiring the first Bruneians in 1971, the company has continued to develop its local workforce that now represents 80 per cent of its employees.
In 2016, a major milestone was achieved as Schlumberger celebrated its 80th anniversary by giving back to the community with a Lend a Hand, Together We Can, charity run. All the proceeds collected during the event were donated to two charitable organisations, namely the Society for the Management of Autism Related issues in Training, Education and Resources (SMARTER) Brunei and Pusat Ehsan Al-Ameerah Al-Hajjah Maryam. Various safety activities were also set up to raise general awareness of the public on seatbelts and responsible driving.
November 28, 2019 marked another major milestone for Cameron, a Schlumberger company, with the opening of a new centre in Kuala Belait. The new facility enables manufacturing to be carried out locally while supporting installation and maintenance of oilfield equipment for Brunei and the surrounding region. The five-hectare site consists of a 4,000-square metre facility including a workshop, a warehouse as well as a hands-on training area with a 2,000-square metre office. This facility features innovative processes to elevate its service performance to its customers through on-site technical expertise.
Today, Schlumberger operates out of two fully equipped facilities in the country, and many Bruneians are offered development opportunities locally as well as internationally.
During the COVID-19 pandemic, Schlumberger demonstrated global efforts focussed on putting people and safety at the centre of everything they do – a representation of sustainability in action. Schlumberger was able to quickly implement a comprehensive outbreak management plan and adapted its work practices as the company identified pandemics as one of its enterpriselevel risks prior to the outbreak of COVID-19.
The COVID-19 Management Standard was published internally and shared with the global oil and gas industry association for advancing environmental and social performance (IPIECA), International Association of Oil & Gas Producers (IOGP), Society of Petroleum Engineers (SPE), customers, and suppliers.
In Brunei, a multidisciplinary emergency response team was set up immediately to manage the safety of its people and work with customers in building robust business continuity plans. The supply of face masks, hand sanitiser and oximeter was made adequate for all. IT infrastructure was upgraded, and guidance was issued to accommodate teleworking and staff well-being. An employee assistance programme was launched to help with managing mental health and stress.
As the COVID-19 situation continues to evolve, Schlumberger continues to stay vigilant, monitoring and adapting to the situation under the guidance of the company Global Crisis Management Team. Safety remains Schlumberger’s top priority.
Schlumberger is committed to be at the forefront of the industry’s shift towards sustainable energy production, delivering both measurable social and environmental progress. The company has a comprehensive sustainability programme with current focus on three key pillars – Taking Climate Action, Creating Opportunity, and Empowering Local Teams.
Schlumberger has announced its commitment to achieve net-zero greenhouse gas (GHG) emission by 2050. The company is working towards more sustainable ways of accessing oil and gas which includes reducing fuel and power consumption, helping its customers reduce their emissions with its innovative portfolio of transition technologies and working with suppliers to jointly lower emissions. Schlumberger is also committed to accelerating innovation beyond oil and gas in lower carbon businesses through Schlumberger New Energy.
The company will continue to create opportunities in the communities where they live and work by investing in local technical capabilities, embracing all dimension of diversity and fostering inclusivity.
Leveraging the company sustainability programme, the Schlumberger Brunei Team is empowered to drive actions that make positive impact locally. The company has identified three key United Nations Sustainable Development Goals (SDG) of focus in the country – good health and well being; responsible consumption and production; and climate action. Thanks to the support of many Schlumberger volunteers, numerous activities have been carried out including tree planting, beach clean-ups, recycling campaigns, blood donation, sustainability awareness campaigns and dialogue with local advocates.
As Schlumberger celebrates more than 85 years of history in Brunei, together the company will explore and progress towards a bright and sustainable future. Bringing about positive impact in the community is the company’s pride.
Copyright 2019 Borneo Bulletin Yearbook 2019 All rights reserved.
