A US$25-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.
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, 14 hectares have been allocated at Salambigar Industrial site for the threading plant. 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”.
He said that in the second phase of the project, Brunei may consider exporting the products regionally.