China-Brunei joint venture inks crude oil supply, products distribution deals with local companies

Updated: September 20, 2019 Source: Xinhua News Agency
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Hengyi Industries Sdn Bhd, a joint petrochemical venture between China and Brunei, on Wednesday inked commercial agreements with Brunei Shell Petroleum Company (BSP) and Brunei Shell Marketing Company (BSM) for the supply of crude oil to Hengyi and selling of fuel products in Brunei market.

Hengyi Industries is a joint venture between China's Zhejiang Hengyi Group and Damai Holdings, a wholly-owned subsidiary under the Brunei government's Strategic Development Capital Fund. They own 70 percent and 30 percent of the shares respectively.

Farida Talib, BSP's commercial director, said in her speech at the signing ceremony that the new commercial agreements would allow for improvements within the domestic oil and gas value chain with BSP supplying crude oil to Hengyi's oil refinery and petrochemical project at Pulau Muara Besar (PMB), a 955-hectare industrial park on an island at the Brunei Bay.

Hengyi in return will supply refined fuel products to BSM for distribution to the local market. BSM said this will meet domestic product demand, support downstream retail and industrial development in Brunei and enable significant associated economic benefits.

Chen Liancai, CEO of Hengyi Industries, also highlighted that the agreements serve another milestone for Hengyi Industries' petrochemical project.

Chen said that Hengyi will purchase part of its needed crude oil from BSP, and supply petroleum products to BSM including gasoline, diesel and jet oil. Hengyi will also work closely with BSJV (Brunei Shell Joint Ventures) companies to ensure smooth transition and supply of petroleum products to the domestic market from the current refinery to its new refinery at PMB.

"As a company with a strong sense of corporate social responsibility, Hengyi Industries is committed to meeting local demand for petroleum products. We also invest heavily in upgrading the quality of fuel products from Euro 2 to Euro 5, which is a giant leap forward aiming to better preserve the environment for Brunei," he stated.

"Hengyi will not only be able to meet the domestic market demand but also help drive export to international market and improve trade balance. With this we look to align ourselves with the Brunei national aspiration and contribute towards developing and diversifying Brunei economy."

He said there are also plenty of spinoff opportunities that will be generated not only within the oil and gas industry, but also across other supporting industries such as shipping, engineering services, catering and others that will generate direct and indirect employment opportunities for the Bruneians.

Editor: 曹家宁