Brunei Finance Minister II: BFI Fertilizer Plant to Create 1,200 Jobs
BFI fertilizer plant to create 1,200 jobs
August 27, 2017
| Lyna Mohamad |
THE ambitious ammonia and urea plant, set to be established by Brunei Fertilizer Industries (BFI), will create 1,000 jobs in the construction phase and a further 200 jobs during the operational phase. The plant will also generate 600 indirect jobs in the service sector.
This was stated by the Minister at the Prime Minister’s Office and Minister of Finance II Pehin Orang Kaya Laila Setia Dato Seri Setia Awang Haji Abdul Rahman bin Haji Ibrahim in his keynote address at the Engineering, Procurement and Construction (EPC) Agreement signing ceremony yesterday.
All construction activities including infrastructure projects are now geared towards realising and delivering this project on time for production by 2021, he noted.
The signing of this EPC contract, the minister said, is yet another significant achievement to the development of the downstream industry in Brunei Darussalam. Earlier this year, Hengyi Industries also announced their commitment to invest in a crude oil refinery and aromatics cracker complex valued at US$3.445 billion, which will have a significant impact on our economy in the short to medium term.
According to the minister, the conclusion of the extensive negotiations on the EPC contract will firm up Brunei Fertilizer Industries’ commitments and investments in Brunei Darussalam to realise the construction of an ammonia and urea plant with a total investment value of B$1.8 billion, marking another important success and milestone for the industry.
“The government, in addition to these investments, is also actively undergoing negotiations for further investments in the downstream industry sector that will create more value added to the economy.
“For example, if realised, a further estimated investment value of US$11 billion is expected for the downstream industry. All of these are a testament to Brunei Darussalam’s attractiveness as a preferred destination for foreign investments,” the minister said.
He further pointed out that the government remains firm and committed to ensure that our business environment continues to be open, transparent, pro-business and pro-investment so that it will support not only foreign direct investments but also local entrepreneurs at large, as a backbone the nation’s economy.
These, said the minister, will not be achievable without the wise and visionary 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.
“The diversification efforts for Brunei Darussalam have always been a key focus of His Majesty’s Govern-ment. With the blessings of Allah the
Almighty, we are confident that with all these investments, Brunei Darussalam, Insya Allah, will see further tangible results with the creation of more jobs and economic opportunities,” he added.
“Opportunities are abound for MSMEs ranging from catering services, to the provision of complex maintenance contract, packaging, business services, parts supply, general office and building maintenance.
“But, to make this work, all parties must recognise the opportunities and plan forward to ensure our companies and our people are ready and well equipped to be part of this important journey.
“Brunei Darussalam, as a member of Asean, will continue its efforts to diversify its economy, and play an important regional role, in the value chain across our key clusters. We invite more ideas, collaboration and collective work towards making this happen. We also welcome efforts by all parties including our esteemed ambassadors and representatives to work closely with our business people with the hope to increase our mutual trading links to greater heights,”
Extending his gratitude to the FDI Action and Support Centre (FAST), DARe (Darussalam Enterprise) and other relevant government agencies for their crucial support in this project, the minister also acknowledged the role of Brunei Shell Petroleum Co Sdn Bhd (BSP) as the main supplier of natural gas feedstock to the BFI plant.
“It is my hope that all parties will remain committed and focused towards ensuring the continued success of this project and other foreign direct investment projects in Brunei Darussalam,” the minister concluded.
Courtesy of Borneo Bulletin
BFI signs deal to establish world-class fertilizer plant
August 27, 2017
| Lyna Mohamad |
THE Brunei Fertilizer Industries Sdn Bhd (BFI) yesterday signed an agreement with Germany-based worldwide engineering and construction services provider ThyssenKrupp Industrial Solutions AG (tkIS) to set up an ammonia and urea plant.
Located on a 55-hectare site in Sungai Liang Industrial Park, the BFI plant will produce 2,200 metric tonnes per day (mtpd) of ammonia that will be converted into 3,900 mtpd of quality granulated fertilizer (urea).
The plant is expected to start commercial production by the first quarter of 2021.
The signing of the Engineering, Procure-ment and Construction (EPC) Agreement took place at The Empire Hotel & Country Club in the presence of the Minister at the Prime Minister’s Office and Minister of Finance II and Chairman of the Foreign Direct Investment (FDI) and Downstream Industry Steering Committee, Pehin Orang Kaya Laila Setia Dato Seri Setia Awang Haji Abdul Rahman bin Haji Ibrahim.
The signing ceremony began with the recitation of Surah Al-Fatihah followed by the opening remarks by the Minister of Development and Chairman of BFI, Dato Seri Setia Awang Haji Bahrin bin Abdullah.
He noted that the signing will open up many economic opportunities for the country and people, both directly and also through the spin-offs that will be created, as the country presses ahead with its hydrocarbon-related activities, not only to further diversify the country’s hydrocarbon downstreaming strategy but also, and more importantly, to enhance the strategic developmental benefits to the local economy.
The BFI chairman further noted that as urea application is mainly as fertilizers, BFI will leverage on the country’s central geographical location to supply the surrounding agriculturally rich countries to fulfil their fertilizer demand and the export of high-quality urea produced by BFI will have the potential to commercially benefit the country’s export logistic sector.
“Hence, BFI is also expected to catalyse spin-off opportunities for micro, small and medium enterprises such as the area of provision of logistic services or specialised services for plant.”
The coming-on-stream of the project, added the chairman, will also open up further downstreaming activities of exploration such as the potential production of melamine resins that has applications in many industries hence creating further business opportunities for local companies and foreign direct investment.
“All in all, BFI is excited to be signing the EPC agreement with tkIS today, to pave the way for the construction of our own world-class fertilizer plant which will place Brunei Darussalam in the world map as a new and serious player in fertilizer production,” he added.
Additionally, in support of the natural gas requirement of the project, a Memorandum of Agreement (MoA) has also been signed with Brunei Shell Petroleum Co Sdn Bhd (BSP) in commitment to continuously supply a total of 0.5 trillion cubic feet gas over the next 20 years.
With the total investment value of B$1.8 billion, BFI will enable the country to create further value to its natural gas resources by developing downstream industries in the oil and gas sector beyond the existing production of liquefied natural gas (LNG) and methanol while the ammonia and urea produced from BFI will also be able to create further downstream opportunities, including the production of urea formaldehyde and melamine.
These by-products also present potential for spin-off industries, such as in the manufacturing of fibre board, wood furniture, and tableware while further investments in the downstream industry can potentially create a further estimated US$11 billion value.
The further growth of the downstream oil and gas industry is in line with the economic diversification agenda of the country, alongside the development of other priority investment clusters in the Halal industry, technology and creative industries, business services, and tourism.
Meanwhile, Pehin Orang Kaya Laila Setia Dato Seri Setia Awang Haji Abdul Rahman in his keynote address said this investment is expected to generate employment for the local Bruneians, where on top of the 1,200 job opportunities during construction and operational stage, there will be a further 600 indirect job opportunities in the service sectors.
Also in attendance were the Minister of Energy and Industry at the Prime Minister’s Office and Deputy Chairman of FDI and Downstream Industry Steering Committee, Pehin Datu Singamanteri Colonel (Rtd) Dato Seri Setia (Dr) Awang Haji Mohammad Yasmin bin Haji Umar; the Minister of Primary Resources and Tourism, Dato Seri Setia Awang Haji Ali bin Haji Apong; and the Deputy Minister of Finance, Dato Seri Paduka Dr Awang Haji Mohd Amin Liew bin Abdullah.
Courtesy of Borneo Bulletin