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Business / Companies

Hengyi Industries, Brunei sign land lease agreement

(Xinhua) Updated: 2014-01-28 13:26

BANDAR SERI BEGAWAN - Petrochemical giant Hengyi Industries Sdn Bhd (Hengyi) from China and the Brunei Economic Development Board (BEDB) signed a 260-hectare land lease agreement for an integrated oil refinery and aromatics cracker project on Pulau Muara Besar on Monday.

The signing event was witnessed by Dato Haji Ali, deputy minister at the Prime Minister's Office and Chairman of the BEDB. Signing on behalf of Hengyi was Fang Xianshui, general manager of Hengyi Petrochemical Co Ltd, China, while signing on behalf of the BEDB was Haji Abdul Manaf, deputy permanent secretary at the Prime Minister's Office and chief executive officer of the BEDB.

In his remarks, Haji Abdul Manaf said "Hengyi's integrated refinery and petrochemical project will be one of the largest foreign direct investments in Brunei to date. In addition, it will be Brunei's second petrochemical project, thus contributing to the nation's objective of extending the value chain of the oil and gas industry."

The project, he added, will contribute to the nation's economy and provide numerous socio-economic benefits to Brunei such as job opportunities, support local business development and promote technology transfer.

The BEDB, he went on, will be embarking on a number of infrastructure development projects to support Hengyi's commercial operations including the construction of the Pulau Muara Besar bridge, road and utilities. The proposed sea bridge, which will link Pulau Muara Besar to the mainland at Serasa Village, will provide access to the island as well as connectivity for utilities such as water, power and telecommunications.

The investment for Phase 1 of the Hengyi project is expected to amount to some $4 billion, creating about 780 job opportunities. Upon completion, the facility will be able to produce petroleum products such as gasoline, diesel, Jet A-1 fuel and petrochemical products like paraxylene and benzene.

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