PetroleumBRUNEI was granted all mineral rights in four prime petroleum blocks. These blocks, comprising of offshore Blocks J and K, as well as onshore Blocks L and M, cover a total area of approximately 15,300 sq. km.

BRUNEI DARUSSALAM METHANOL PROJECT

As another of PetroleumBRUNEI’s commitment and contribution to the national aspiration of widening the industrial base of the nation’s hydrocarbon resources, PetroleumBRUNEI entered into a joint venture agreement with Mitsubishi Gas Chemical Company Inc. and ITOCHU Corporation on 21 November 2005 to develop a world-class methanol plant in Brunei Darussalam.

 Subsequently Brunei Methanol Company (BMC) was incorporated by the three joint venture partners on 13 March 2006 to manage and develop the Brunei Darussalam Methanol Project. PetroleumBRUNEI (through its subsidiary PB Petrochemical Company Sdn Bhd) has taken a 25% equity interest in BMC to play a direct and active part in this most significant leap in Brunei Darussalam’s industrial development since the 1970’s.

 The project has successfully attracted financing from major banks such as the Japan Bank for International Co-operation.

 The plant is located in Sungai Liang Industrial Park in the Belait District. Mitsubishi Heavy Industries Ltd is responsible for the engineering, procurement and construction of the US$400 million plant.

 The significance of this project to the nation was further highlighted when His Royal Highness The Crown Prince Pengiran Muda Haji Al-Muhtadee Billah officially laid the foundation at the site on 11 February 2008. The plant will commence its full commercial operation in 2010, with a production capacity of 850,000 metric tonnes/year chemical grade AA methanol.

 The methanol plant has contributed to the nation’s economic growth and development through the creation of new opportunities for Small Medium Enterprises (SMEs) and other local businesses.

 BMC is expected to employ approximately 170 people in total. It is targeted that within two years from the start of commercial operation, 90% of the employees will be Bruneians, increasing to 95% after five years.

BRUNEI DARUSSALAM METHANOL TANKER PROJECT

The Joint Venture Agreement to form a company, Brunei Methanol Tanker Sdn Bhd (BMT), for the Brunei Darussalam Methanol Tanker Project was signed on 11 April 2008 between PB Logistics Sdn Bhd (a subsidiary of PetroleumBRUNEI ), Kokuka Sangyo Co. Ltd., (KSK) and Itochu Corporation.

The Brunei Methanol Tanker Project is the first direct spin-off resulting from the Brunei Methanol Project. PB Logistics Sdn Bhd is the sole local and majority shareholder in this project, owning a 50% share.

 KSK, a subsidiary of Mitsubishi Gas Chemical Company (MGC) holds a 30% share while ITOCHU holds 20%.

BMT will own Brunei Darussalam’s first methanol (chemical) tanker to transport methanol from the Brunei Methanol plant to customers in the region. Construction for this 5500 deadweight ton (DWT) tanker started in 2008 in Ningbo Dongfang Shipyard in China.

BMT signed the Facility Agreement with Baiduri Bank on 7 August 2008 to finance the project. 

The keel laying ceremony for BMT’s first tanker took place on 18 December 2008 at the Dongfang Shipyard in China, signifying an important milestone in the project. This was followed by the tanker’s launch on 20 October 2009.

The tanker will next undergo fitting-out and sea trial before its delivery to Brunei Darussalam in the first quarter of 2010.

This tanker will be registered in Brunei Darussalam and hence will contribute to the growth of Brunei Darussalam’s marine industry.  It will be managed by KSK, a shareholder in BMT who has experience in the methanol shipping business.

PB Petrochemical Company Sdn Bhd was incorporated on 4 March 2006 to manage and develop petrochemical businesses and projects for, and on behalf of PetroleumBRUNEI. PB Petrochemical is PetroleumBRUNEI’s nominee shareholder to the Brunei Darussalam Methanol Company Sdn Bhd, holding a 25% share.

PB ExPro Sdn Bhd represents the upstream venture arm for PetroleumBRUNEI and was incorporated on 20 December 2006. PB ExPro focuses on the exploration and production of oil and gas, as well as related peripheral activities to this end.

PB Logistics Sdn Bhd was incorporated on 22 November 2007 to develop, manage and provide transportation, infrastructure and logistic services, supply base and stores, for the oil and gas industry. PB Logistics, together with its joint-venture partners, placed an order for its first methanol tanker in April 2008.

PB Services Sdn Bhd was incorporated on 22 November 2007 to facilitate the provision of critical and asset intensive oilfield services and products ie. FPSO, drilling rigs, supply base storage, for the oil and gas industry generally.  PB Services is currently looking at projects which will provide specialized oilfield services to the upstream exploration and production operations.