PetroliumBRUNEI, JBIC Ink Procject Finance MoU
By Sonia K.

Bandar Seri Begawan - Brunei National Petroleum Company Sdn Bhd (PetroleumBRUNEI) yesterday signed a Memorandum of Understanding for cooperation on Project Finance knowledge transfer with Japan Bank for International Cooperation (JBIC).

On hand to witness the signing ceremony as guest of honour was Pehin Dato Seri Setia Hj Abdul Rahman bin Hj Ibrahim, Minister of Finance II and Deputy Chairman of the Board of Directors of PetroleumBRUNEI. The ceremony was held at the Civil Service Institute in Rimba Gadong.

Signing the MoU on behalf of PetroleumBRUNEI was its Chief Executive Officer, Hj Mohd Jaafar bin Hj Awang Bakar, while JBIC was represented by Senior Executive Director Mr Junichi Kondo.

As part of the MoU, JBIC will share its experiences in project finance with PetroleumBRUNEI through occasional workshops and exchange of information.

Hj Mohd Jaafar in his speech said the event signified the close relationship between Brunei's national oil company and Japan's governmental financial institution.

"The relationship between PetroleumBRUNEI and JBIC resulted from the Brunei Methanol Project of which PetroleumBRUNEI, Mitsubishi Gas Chemical Company Inc. and Itochu Corporation are shareholders," he said.

"The joint-venture company, Brunei Methanol Company Sdn Bhd, are in discussions with JBIC on project financing for this project.

"It is understood that JBIC will start its full scale due diligence on the project in the very near future," added Hj Mohd Jaafar.

"All parties are committed towards making a Final Investment Decision by next year. This project is something we hold very close to our heart - it is part of our nation's pursuit for further industrial development and it will be the first gas-based petrochemical plant in Brunei," he added.

The CEO of PetroleumBRUNEI also said that PetroleumBRUNEI values this opportunity as a mechanism for capacity building of its officers, to further strengthen the knowledge on Project Finance.

"Capacity building is one of the key aspects in future investments that the company will undertake - be it in upstream or downstream of the Oil and Gas industry," he said, adding that PetroleumBRUNEI believes the success of the Company lies with its personnel and is therefore committed to investing in their development.

The Senior Executive Director of JBIC, Mr Junichi Kondo, in his opening remarks said, "With the sight set on even stronger ties between our two countries, the governments of Brunei and Japan have launched preparation work for the signing of an Economic Partnership Agreement (EPA), thus beginning a new and exciting year for our bilateral relationship. The Brunei Methanol Project has been conceived as part of such government efforts.

"Having received an application for JBIC's project finance to this methanol project from PetroleumBRUNEI, Mitsubishi Gas Chemical and Itochu Corporation, JBIC recognises the great significance of this project not only as a first major step towards the new relations between our two countries, but a key project that is conducive to the diversification of industry in Brunei," he added.

The signing was then followed by a half-day seminar on Project Finance by JBIC. -- Courtesy of Borneo Bulletin

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