MALAYSIA HAS PROPOSED TO UNDERTAKE TWO OIL AND GAS (O&G)-RELATED PROJECTS IN BRUNEI

Greater Brunei role in Sabah

BANDAR SERI BEGAWAN September 14, 2011: Malaysia has proposed to undertake two oil and gas (O&G)-related projects in Brunei, Prime Minister Datuk Seri Najib Tun Razak said Tuesday.

One was by Petronas to build a petrochemical complex with BASF in Pulau Muara Besar, involving an investment of about US$1.6 billion, while the other was the development of a fabrication yard by Petronas' subsidiary, Malaysia Marine and Heavy Engineering Holdings Bhd.

Najib said he had told Sultan Hassanal Bolkiah of the proposals when they met yesterday (Monday) and the project would take off if Brunei agreed to it.

"Both projects will have positive impacts on both countries, particularly the job opportunities to be created.

"At the same time, it will show that the top-level decisions we have made are for the good of both countries," he told Malaysian journalists at the end of his visit in conjunction with the annual consultation with the Sultan of Brunei here.

The Prime Minister said the petrochemical complex was expected to create about 650 employment opportunities, and the products were for export markets.

"We need Brunei's agreement and their participation in terms of equity in both ventures," he said.

Meanwhile, Najib said he had also discussed investment opportunities for Brunei in the Sabah tourism sector and hydro power generation in Sarawak.

"Brunei is studying the possibility of their participation in a hydroelectric generation project for Sarawak and Brunei," he said.

On the field of finance, Najib said he had told Sultan Hassanal Bolkiah of Malaysia's desire to see Brunei's involvement in the Malaysian Islamic banking sector.

In principle, Brunei had shown interest to collaborate in this field, he said.

"The details will be announced later. Brunei sees the possibility of it getting involved in the development of Islamic banking in Malaysia because Malaysia is recognised as the world Islamic banking centre," he said.