Through its subsidiary PB Logistics Sdn Bhd, the Brunei National Petroleum Company Sdn Bhd (PetroleumBRUNEI) yesterday entered a joint venture agreement with Kokuka Sangyo (KSK) and ITOCHU Corporation (ITOCHU) to form a company for the Brunei Methanol Tanker Project.

The signing ceremony took place at PetroleumBRUNEI office in the presence of the Chief Guest, Minister of Energy Pehin Orang Kaya Seri Utama Dato Seri Setia Awg Hj Yahya Begawan Mudim Dato Paduka Hj Bakar who is also Chairman of PetroleumBRUNEI,

Also present was Minister of Finance 11 Pehin Orang Kaya Laila Setia Dato Seri Setia Awg Hj Abd Rahman Hj Ibrahim in his capacity as the Deputy Chairman of PetroleumBRUNEI.

Signing on behalf Of PB Logistics Sdn Bhd was CEO of PetroleumBRUNEI Hj Mohd Ja’afar Hj Awg Bakar while KSK and ITOCHU was represented by KSK President Mr Hiroaki Yoshikawa and General Manager Organic Chemicals Department, ITOCHU Mr Keita Ishii, signing on behalf of respective companies.

The Brunei Methanol Tanker project is the ‘first direct spin-off resulting from the Brunei Methanol Company (BMC) where PB Logistics Sdn Bhd is the sole local and majority shareholder in this project owing a 50% share while KSK a subsidiary of Mitsubishi Gas Chemical Company holds a 30% share and ITOCHU holds 20%.

The joint venture’s main business will be to transport methanol produced by BMC to its customers where PB Logistics and KSK have acquired a newly built dedicated chemical tanker from Ningbo Dongfang Shipyard in China to do it.

To be operated by KSK one, it is commissioned in 2010, the vessel is 5500 metric tonnes of deadweight in size while the crew manning it will initially comprise KSK and Bruneian crew in order to expedite skills and knowledge transfer and at the same time Bruneians will also have the opportunity to work on other KSK vessels in order to gain more work exposure.

Agreements will shortly be signed with MGC, offtaker of the Brunei-producea methanol from BMC, to be the chaterer of the vessel and with regards to the Bruneian content of the Brunei Methanol Project, Hj Mohd Jaafar in his speech highlighted that it will increase the number of ocean-going vessels flying Brunei flags from eight to nine, thus increasing the activity of Brunei vessels in international waters.

“This project marks a significant milestone as it diversifies the scope of Brunei’s shipping industry from only LNG to now include Methanol shipping. This means local job opportunities for crew manning of the vessel, Hj Mohd Jaafar observed.

He added that in addition to this steps have been taken to ensure that transfer of skills and technology are completed within seven years so that the ship management can be handed over to a local company.

“Financing and insurance coverage will be provided by local institutions in order to help liquidity and’ensure revenue to the country is maximized. Opportunities within the Brunei Methanol Tanker Project will provide these local institutions with additional business scope. There will also be opportunities to gain experience in financing and insuring technical projects of this nature.”

PetroleumBRUNEI will continue to explore other opportunities arising from the Brunei Darussalam methanol project.

Mr Ishii meanwhile in his speech expressed said: `Brunei Methanol is aiming to begin commercial operations in 2010 and has already started the plant construction. We are confident that our new company could make big contribution in methanol logistics, and achieve win-win relations with each other.”

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