Brunei Shell to increase contract values

National 1 minute, 59 seconds

BANDAR SERI BEGAWAN

BRUNEI Shell Petroleum (BSP) yesterday announced there will be an increase in the value of contract opportunities as Brunei Shell Joint Venture (BSJV) companies step up commitment in the exploration and development of the country's hydrocarbon resources.

Encompassing the full spectrum of BSJV companies' business, areas concerned include manpower supply, engineering and maintenance, fabrication and offshore installation work. In 2007 the total value of contracts spent was $1.6 billion, representing a 50 per cent increase from two years ago, according to BSP Managing Director Dr Grahaeme Henderson.

"As part of our continuous improvement efforts, we are progressing steadily with additional measures to enhance the contractor interface, efficiency and ease of doing business with our companies," Henderson told the Brunei Shell Vendor Forum 2008 held at the Empire Hotel and Country Club. About 750 participants representing 450 companies took part in the event, compared to 500 participants representing 300 companies last year.

The forum serves as an avenue for BSJV and government-registered contractors, cooperative bodies and local enterprises keen on participating in the energy sector.

Additional measures that will be undertaken by BSJV companies to ease business with its companies include open tendering and widening participation to non-registered bumiputera companies to bid for its contracts, Henderson said.

Fully automated tendering or e-tendering, as well as an interactive and user-friendly website link will be made available to enable the efficient communication between BSJV companies and their contractors.

"Furthermore, we will be introducing a special coaching scheme to accelerate the development of our bumiputera(local) contractors, particularly the small and medium enterprises. The existing mentoring system, which aims to guide and enhance the international competitiveness of our bumiputera contractors, is being refined," he added. Bumiputera companies were granted close to half a billion dollars of contracts spent in 2007, double the figure in 2005. Henderson said attention will be focused on growing and building the capabilities of bumiputera companies.

Bruneians make up 90 per cent of the workforce in BSJV companies, with 60 per cent occupying management positions. "Working closely with our contractors, we have replicated the Bruneianisation employment and skill development model to build the capabilities of the local business community," said Henderson.

"Today, over 50 per cent of the 7,000 employees hired by our contractors are Bruneians. We are extending this further ...which has resulted in more than 200 Bruneians trained in trades essential for fabrication and maintenance works."

The Brunei Times