Threading Plant for OCTG to be built at Salambigar

Thursday, December 5, 2013

Oil Country Tubular Goods

A $32-MILLION facility for an integrated Oil Country Tubular Goods (OCTG) supply and threading plant is set for construction next year following an agreement signed by three parties including Brunei Shell Petroleum Company yesterday.

Signing the agreement with Brunei Shell Petroleum were Nippon Steel and Sumitomo Metal Corporation and Sumitomo Corporation in a ceremony held at The Empire Hotel & Country Club.

OCTG are pipe and tube products used in the petroleum industry, such as drill pipes, pipe casings, and oil pipes.

According to Minister of Energy at the Prime Minister’s Office Yang Berhormat Pehin Datu Singamanteri Col (Rtd) Dato Seri Setia (Dr) Hj Mohammad Yasmin Hj Umar (pictured), who witnessed the signing, 14 hectares have been allocated at Salambigar Industrial site for the threading plant.

He told The Brunei Times that the construction of the plant will begin next year. Operations are expected to begin in 2016.

YB Pehin Dato Hj Mohammad Yasmin also said the agreement was significant as it would make Brunei the “first country in the region to have the technology”.

“I think the key consideration is that they’ve been doing this for the last 40 years...the company (Sumitomo) doesn’t just leave and expand anywhere in the region. But this (the plant in Brunei) is the first one in the region,” he explained.

“This also brings capability to our people. We are creating direct employment of about 150 and 100 will come indirectly from the sub-contractors. So actually we’re not doing just having the facility in Brunei but we are building the Bruneian capacity in terms of technology.”

He said that in the second phase of the project, Brunei may consider exporting the products regionally.

The minister, in his speech during the ceremony, stressed maximising local content in implementing the project.

“The Integrated OCTG Supply and Threading Plant project is such an initiative that will complement the government’s effort on increasing foreign direct investment activities in the oil and gas sector, and in the country. I am also pleased to note that this project will satisfy the government’s local business development policies in the oil and gas sector for an increase in local content and local employment.”

He said that in financing the project, local banks should also be engaged and given the opportunity to participate.

“This would in itself add to the local content component of the project,” said the minister.

The Brunei Times