BEDB, Brunei DarussalamThe Brunei Economic Development Board, The Prime Minister's Office
 
 
Memorandum of Understanding between BSP, BSM and Zhejiang Hengyi

Bandar Seri Begawan, 21st November 2011

Following the announcement by the Brunei Economic Development Board (BEDB) in July this year on the endorsement of Zhejiang Hengyi’s US$2.5 billion oil refinery and aromatics cracker project in Brunei Darussalam, a non-binding Memorandum of Understanding (MOU) has been signed between Brunei Shell Petroleum (BSP), Brunei Shell Marketing (BSM) and Zhejiang Hengyi, in respect of the supply of crude oil to and offtake of refinery products from the project.

Zhejiang Hengyi’s oil refinery and aromatics cracker project will be located on Pulau Muara Besar and is expected to create some 800 jobs and also many more indirect jobs through the service companies. Phase 1 of the project will comprise the production of petroleum products such as gasoline, diesel and jet A-1 fuel, as well as other products which are mainly used in textile production. The feedstock requirement will be approximately 135 thousand barrels per day. A portion of the crude oil feedstock will be sourced locally and a portion of the gasoline, diesel and jet A-1 fuel produced will be marketed domestically in order to meet the growing demand of local consumption.

On 20th November 2011, BSP, BSM and Zhejiang Hengyi proceeded to sign an MOU to discuss local crude supply and offtake of refined products for Zhejiang Hengyi’s project in Brunei Darussalam, in the presence of His excellency Mr. Min Yongnian, Ambassador Extraordinary and Plenipotentiary of the People's Republic of China to Negara Brunei Darussalam and Dato Paduka Haji Matsatejo Sokiaw, Permanent Secretary of Energy Department Prime Minister’s Office.

The signing of the MOU between BSP, BSM and Zhejiang Hengyi, whose project will be the largest Chinese Investment into Brunei marks a significant milestone. This will not only strengthen ties between the international companies but also the bilateral relationship between China and Brunei Darussalam.

Zhejiang Hengyi’s project, with support from the Energy Department, Prime Minister’s Office will significantly contribute to the growth of Brunei Darussalam’s energy sector, venturing further into petrochemicals and open doors for new industries. The project will also create a significant boost in local employment, create growth opportunities for local companies, indirect spin-offs and increased economic activities such as construction & logistics, as well as training and development opportunities in relevant fields.

Also present at the event, Dato Paduka Awg Hj Ali Hj Apong, Deputy Minister of the Prime Minister’s office and Chairman of the BEDB, Haji Awg Jamain Hj Julaihi, Deputy Permanent Secretary of Energy Department Prime Minister’s office, , Mr Qiu Jian Lin, Chairman of Zhejiang Hengyi, Mr Ken Marnoch, Managing Director of BSP, Haji Mohd Sufri Hj Sulaiman, Managing Director of BSM, Mr Vincent Cheong, Chief Executive Officer of the BEDB, Mr PC Huang, Chief Executive Officer Brunei Project of Zhejiang Hengyi, Mr Michael Taylor, Finance Director of BSP and other honored guests.

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