Oil players told to toe the line to earn licence to operate

OIL and gas players must toe the line if they want to secure a licence to operate from the government, the energy minister yesterday warned as he scored Brunei Shell Petroleum Sdn Bhd (BSP) amid allegations of irregularities in the tender process and for not fully contributing to local business development despite its long presence in the Sultanate.

In a speech at the Brunei Shell Vendor Forum, Minister of Energy at the Prime Minister's Office (EDPMO) Pehin Datu Singamanteri Colonel (Rtd) Dato Seri Setia Dr Hj Mohd Yasmin Hj Umar urged oil and gas contractors to strictly observe the government's policies on local business development, business integrity and safety. "They are essentially the ingredients for licence to operate," he said.



"As owners and leaders of your companies, the change must start from you. If you do not show interest, no one else in your companies will also. We want real change. Make those changes now to earn your licence to operate," he said.

To ensure change, he said the government will not only establish legal framework but will go even further by facilitating and creating opportunities.

The minister also said Brunei must maximise economic spin-off from the energy industry, which means ensuring the development of Bruneian businesses in the sector.

He said the government was looking to enact regulatory framework to create conducive environment such as a free trade zone in order to promote investment.

Pehin Dato Hj Mohd Yasmin said the government wants to establish Pulau Muara Besar as a base for energy services hub, pursue specific investment initiatives led by government-linked companies, and lastly, to conduct a comprehensive study on local content development.

The four initiatives are among key policies outlined for maximising economic spin-off from the energy industry.

"The first, maximising local content, is aimed to create 50,000 employment opportunities by 2035. The second of the four key policies, is to ensure the overall percentage of local employment, especially in the energy service sector is maximised," he said.

To ensure the overall percentage of Bruneians employed, the EDPMO will establish an Energy Industry Competency Framework designed to provide the right training and produce the right skills needed by the industry; promote recruitment and training of locals by using the available government human resource development fund; expand the capacity of education and training institution (which includes inviting foreign training providers); and lastly, to conduct a comprehensive study on ways to ensure a more conducive working environment.

Pehin Dato Hj Mohd Yasmin said Brunei must develop truly Bruneian companies, that are not only owned, run and managed by Bruneians, but also employ Bruneians.

"We also have a target for at least five, if not more, Bruneian-owned companies to ... compete regionally. Our initiatives to develop Bruneian companies will focus on capacity building, facilitating access to financing, and a coordinated effort to pursue significant investment opportunities inside and outside Brunei," he said.

The minister told The Brunei Times on the sidelines of the vendor forum at The Empire Hotel & Country Club that he hoped these companies were those in the support services for BSP or other operators.

When asked if PetroleumBRUNEI (PB) would be one of the companies, he said the state oil firm was working "very hard" to establish itself as one of those companies.

"In terms of support services, we want to bring some of our Bruneian companies overseas. Some of them have been given certain concessions in some of the neighbouring (countries)," he said.

He said the fourth key policy involved government's "strict no monopoly" rule.

"We must provide a level playing field for existing and new players to create opportunity for all, and not limited to a few," he said.

The Brunei Times