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Brunei's oil kombinat final


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  • 1. Proposal for Brunei’s oil combine;a recommended model enterprise in Japan Course: Independent Study (YLP5020E) Presentation by Ahmad Zamri bin Haji Abdul Razak (MEY11011) School of Government Young Leaders Program National Graduate Institute of Pollcy Studies, Tokyo, Japan Monday, July 2nd, 2012
  • 2. Introduction• Brunei’s future – oil runs out in about 20 years & natural gases depleted in 30 years time• Huge potential with existing oil & gas sector (refineries) but lacks the support of industries & enterprises (SMEs)• Hence, site visits to and nearby Kawasaki industrial area as a case study
  • 3. 5675 sq km 161 km coast lineNW BorneoASEAN 4 main districts total pop: ~400k B-M pop: ~290k Islam, Malay race ~66% Median age grp ~70% 12 ministries
  • 4. Environment:75% rainforestsphased out Brunei’s rainforestschloro home to manyfluorocarbon endangered wildlife(CFC) and species such asconsumption Proboscis monkey,in Jan 2010 Orang Utan & other biodiversity
  • 5. KEY INDUSTRIAL SITESSupport for Investorsthru Brunei IndustrialDevelopmentAuthority(BINA) PMB: 955 ha SPARK: +90haSupport of SMEsthruEntrepreneurial BUT only 29% ofDevelopment SMEs in oil & gasCentre (EDC) sector E.g. PTAS & Brunox
  • 6. oil & gas 2 industries:sector: -oil & gas mining62% of the -manufacturing of LNGnation’s real 2 JVs:GDP in 2010 BSP & BLNG JVs (supporting 2 industries): BGC & BST (shipping) BSM – sole supplier of fuel thruout the nation New industry: BMC set up in SPARK
  • 7. • PTAS is a 100% owned company by locals where the company is to conduct business with the major players like BSP, BLNG among others in the sector through the supply of products from manufacturers of equipment, materials, chemicals, and provide services in the drilling and maintenance related activities• Brunox (Brunei Oxygen) is a joint venture company owned by Air Liquide of France and BOC Gases of UK and locally by QAF Brunei where the activities are the manufacture and supply of industrial gases as well as providing services, training and industry related equipment to customers in Brunei
  • 8. Oil combine• an oil combine (kombinat) is a leading group or association of enterprises clustered by the smaller enterprises (SMEs), whose existence is paramount within the petroleum industry• Japan’s present position of such oil combines can be observed where the refineries’ production of oil and natural gas are then “combined” with the petrochemical industry.
  • 9. JPCA 15 oil kombinats in 9 locations= refineries + petrochemical each major ent. supported by SMEsindustry clustered Kawasaki’s case: 1) close to Tokyo 2) one of the top industrial areas 2 ents.3 major petrochemical products in useful for daily life &Japan: xylene, ethylene & benzene; industries like adhesives,With total exports in 2010 amounted packaging, bottles , fiber,to about 1.4 trillion yen polymers, synthetic rubber
  • 10. KBIC THINK two science hubs visited (above)R&D facilities: 225 enterprises(201 private and 24 academic/others)
  • 11. Kawasaki’s land reclamation projects in the 1940s series of reclamation projects: since 1913 up to Mizue town, completed 1940 before fishing, shipping industries etc… JFE Steel, TOA Oil etc then petroleum, chemicals, steel, machinery industries
  • 12. Kawasaki’s land reclamation projects in the 1960s JX Nippon, Tonen General, Nippon Ukishima town Unicar, petrochemicals Central Glass etc
  • 13. Kawasaki’s land reclamation projects to Present Ajinomoto Logistics etcTowns of ogishima and higashi-ogishima
  • 14. Site visits• various site visits were conducted to and nearby the Kawasaki industrial areas and selected enterprises• Tonen General (oil combine), Shyouei & Nagatsu (plastic molds) and also Kyokuto (die- cast aluminum)
  • 15. Tonen GeneralUkishima Town an integrated petroleum and petrochemical operation (central facility) as feedstock shared between refinery/chemicals and sharing of utilities and offsite facilities surrounded by other industries / enterprises two (2) key plants that produces FCC (92 KBD) and H-OIL (28 KBD), both important conversion FCC processes in petroleum refineries H-OIL – Brunei have refineries but no oil combine (kombinat)
  • 16. Tonen General’s FCC plant visited, 40m high
  • 17. producesolefins, achemicalcompoundsuch asethylene,propylene,butadiene,isobutene andbutane-1,among others which are then used for film, plastic, automobile tyres, acrylic fibres, tubes, for end-use applications in collaboration with other ents. clustered around
  • 18. Shyouei Corporation the “manufacturing” equipments (plastic injection molding machines) used (left)owner demonstratingthe sample of plasticmolds (polycarbonate,acrylic) produced for cardashboard (right)
  • 19. Nagatsu Corporation the “testing” equipments used (left)a sample of highprecision plasticmolds producedfor cameras CEO, sitting on(right) the front left (above)
  • 20. high technology machines usedKBICNagatsu undertaking R&D on nano-level super precision molds (very smallproducts) for hologram devices andcameras (like lens as picture above)
  • 21. Kyokuto Corporation technology with the Chairman, transfer: sitting on the front JVs in China right (left)fabrication process:among manyexamples ofaluminumdie-cast productssupplied as smallerparts for biggermachines of majorcustomers like SMC(right)
  • 22. Conclusion• rather than just to export “natural resources”, Brunei to set up oil combine with a view for “value added” industries to be developed surrounding the long established refineries (possible locations in SPARK & PMB)• with assistance from Government agencies like BINA, EDC, among others, to invite Japanese enterprises with tax and business incentives for development and technology transfers with local SMEs & send Bruneians to Japan (like Kyokuto’s JVs in China)
  • 23. 1. Hybrid cars 2. Renewable energy sources technology photovoltaicdomestic transfer + IT (solar)& exportmarket Vision for Brunei: fabrication process petrochemicals 3. Food products as basic wind packaging building blocks for Brunei Halal possible industries brand eco-tourism Futuristic city- souvenirs offices, homes, cars all run by renewable energy sources
  • 24. • The limitations of the study are:• the key success factors in Japanese petrochemical industry, among others - perhaps on the “technology transfer” aspect - how foreign technology was unraveled and adapted to the local needs in just one decade• another consideration is the huge presence of a neighbouring oil combine (Singapore), hence to set up complementary projects• The challenges ahead for Brunei:• To coordinate understanding and political will amongst the business leaders and the government’s policy makers in the development of such industries in the sector• To generate entrepreneurship mentality and knowledge amongst the people to embark into such businesses• To ensure environmental issues are balanced with the nation’s economic progress