Brunei, M'sia join forces in US$3b deal
MALAYSIAN company TRC Synergy has acquired a 26 per cent stake in private-owned Petrobru, and will partially fund the proposed construction of oil refinery and storage facility at Pulau Muara Besar, a project worth an estimated US$3 billion.
The formalisation of shareholding agreement between Petrobru and TRC Energy, a subsidiary of TRC Synergy was inked at the Empire Hotel & Country Club, yesterday.
Zainuddin Dato Seri Paduka Hj Marsal, Petrobru's executive chairman signed on behalf of the company, while Executive Chairman Dato' Sri Sufri Hj Md Zain represented TRC Energy.
The planned refinery will have a preliminary capacity estimate of of 200,000 barrels a day, and a maximum capacity of 500,000 barrels per day, to be built in stages, said Petrobru Chief Executive Officer Mohd Zaman Noordin.
Brunei has 8,600 billion barrels per day of refining capacity at its current facility, which is operated by Brunei Shell Petroleum in Seria, according to the Oil and Gas Journal.
The storage facility is expected to be capable of handling two million cubic metres, while a jetty and berthing capabilities have also been proposed for large crude carriers.
Currently, Petrobru has allocated 480 acres for the refinery and storage facility, but Mohd Zaman said the size may be increased if necessary, pending on the completion of the feasibility study.
The CEO said that the proposed project fulfils the government agenda for the private sector to be an engine for the country's economic growth. "We hope to push the project quicker, but (the MoU signing) is a small step in a long road towards realising this project," he said.
Target markets for the export-oriented oil refinery and storage facility include Vietnam, Indonesia, China and other Asian countries.
TRC's Executive Director Datuk Abdul Aziz Mohamad previously told The Brunei Times that the company looks to benefit from spillover activities from the oil refinery, including infrastructure and property development. "Construction will still be our main earnings contributor in the next two to three years but we can't rely on it. By then, PetroBru will see work in full swing," he said.
courtesy of The Brunei Times
