Time for Brunei to have own rigs, vessels
BY RACHEL THIEN
BELAIT - AFTER decades of operating in the country's oil and gas industry, Bruneian companies should own key assets such as vessels and rigs instead of having to lease them from others, the Energy Minister at the Prime Minister's Office said yesterday.
"Why is it until now we do not have a Bruneian-owned rig?" Pehin Datu Singamanteri Colonel (Rtd) Dato Seri Setia Dr Hj Mohammad Yasmin Hj Umar questioned.
The minister revealed that there are over 70 vessels operating on Brunei waters, but queried how many are actually serviced and maintained in the country.
"Why do they rather go to Labuan, for example? We can build the facilities here because the government is giving land. We also have the Belait shipyard which has facilities," he said.
Although Pehin Dato Hj Mohd Yasmin acknowledged that servicing and maintaining vessels in Labuancould be cheaper due to the dollar exchange, he said, "The question is where do you want to draw the line? How much do you love your industry because when you have a sufficient number of vessels, there is a need to support this industry."
During the announcement of the new Directive No 2- Local Business Development (LBD) Framework inSeria, the minister said the government has requested to Brunei's oil major to increase the time period for some of the contracts.
This is to provide opportunities or incentives for local contractors to invest in better facilities or to own their required assets.
"That is the reason we are asking Brunei Shell to look at extending the contracts to a reasonable length such as from three to five years, where banks who are loaning money to the company will see that they will have the business within the next five years which will pay off for the initial investment," Pehin Dato Hj Mohd Yasmin told journalists.
While presenting opportunities for Bruneian companies to own their own assets in the field which will also provide a platform for them to be able venture onto foreign shores, the minister said there was a need for a change in mindset.
"Why do we have to always lease the ships instead of owning them ourselves? If our companies have their own ships, they do not only have to look at Brunei waters to do work but other countries in the region," he said.
-- Courtesy of The Brunei Times
