Cooperation in the oil and gas industry between Bruneian and French companies could stand to benefit both sides significantly, as the two have plenty to offer each other. Mr Benjamin Dupal, the General Manager of the French Oil and Gas Industry Council (GEP APAC), said this yesterday while speaking to the Bulletin in an interview following the first session of meetings at The Empire Hotel and Country Club between nine French companies and around 25 local companies involved in the oil and gas industry. “I think there are opportunities for every oil and gas service company in Brunei, not only the French ones,” said Mr Dupal. “The fact of reality is that if deep sea projects flow, for historic reasons many French companies could possibly provide services to the operators. “So many French oil and gas service companies are involved in deep sea projects all over the world, so obviously if CA1 or CA2 (Brunei’s prospective deepwater offshore blocks) come to stream, regardless of the operator, you will see French oil and gas service companies in Brunei.” GEP APAC is the French oil and Gas Supplier’s Council, and they set up an office in Singapore last September to both promote the services of their 1,300 members and also help them deploy themselves in the region. Speaking about how Bruneian companies in oil and gas could benefit from cooperation with French companies, he said, “France has no oil. Nonetheless it has the second oil and gas supply industry in the world, behind the US. “What does that mean?” he asked rhetorically. “It means that all the oil service companies work for export projects, so they’re very used to working internationally. “I would say the second point is that, in the case of TOTAL, and in the case of other companies too, but TOTAL in particular insists on its contractors to develop local content and to partner with locals on industrial projects,” he continued. “So in that sense I think it would benefit the Sultanate in terms of the transfer of knowledge, the transfer of technology and job creations, and keeping the wealth of oil field developments within the country.” On the flipside, speaking about how French companies could benefit, he said Brunei offers opportunities for the council’s members “as it’s not a very crowded market to date, and the desire of the authorities to develop a local content programme will be translated through promotion of foreign SMEs working in the country, so our members could definitely benefit from that”. Mr Dupal said that for the GEP APAC, Brunei is a key country in the region, and that they hope they can develop strategic ties with the Brunei Economic Development Board (BEDB), PetroleumBrunei, Brunei LNG and eventually the Ministry of Energy at the Prime Minister’s Office to see which areas and what kind of knowledge can be diffused in the Sultanate. “The quality of life in Brunei is very agreeable to everyone. Anyone with a family would love to live here,” he continued. “That is definitely attractive to foreigners who would like to establish themselves in the region.” He described Brunei as being clean, safe and secure, and added that the country has a very interesting geographical position to cater services to the region and it has space. He contrasted Brunei with Singapore to elaborate his point, saying that the latter is also a regional hub for oil and gas services, but that it doesn’t have much space left. “If the industry expands, we’ll need to find places where service providers will be able to establish themselves,” he explained. “The geographical position of Brunei, and the space and atmosphere here will be looked into very carefully.” Sharing his thoughts on how yesterday’s meeting between the companies had gone, he said that it went well, and added that when they came in December 2010 for a similar meeting, out of the 10 French companies involved, two or three had set up or did business in Brunei. “I think we’ve targeted, this time, other companies that will no doubt develop some activity here,” he added. The French Trade Commissioner and Country Director in Singapore and Brunei, Mr Michel Cywinski summed up yesterday’s meetings saying that the morning session began with an exchange of information. The French companies got information on how to invest in Brunei, and Mr Michel described this as being “very important in order to prepare the business-to-business (B2B) meeting”, which was held in the afternoon session. It was also an opportunity for the French companies to present themselves, he said, because many Bruneian companies and suppliers were in attendance, and he reiterated that this helped prepare for the B2B, networking sessions. Speaking on how well the meetings went, he said, “According to the first reaction that I’ve had from the French companies, they are very satisfied with what has transpired between themselves and a number of the local companies because they are in line with each other’s business cores. “They will continue discussions even after leaving Brunei,” he added. “I also understand that for some projects that are ongoing now, they may participate very rapidly in some tenders. “So in some cases they could enter into the market, or at least contribute to give a proposal with some local companies to ongoing tenders,” he added. Mr Michel also mentioned that local content is something that is more important for them this time than it was during the first mission, and that all of the nine companies are convinced that should they have the opportunity, “they will have to do something in Brunei”. “So they are ready either to invest or make a local production or transfer of technology, because it’s really relevant in Brunei and we are also convinced by the BEDB that we are really welcome to invest here,” he added. “So now it’s just a question of doing business. Having business is a question of time, but I’m sure there will be some success for some of these companies in Brunei.” Walid Matta is an Oilfield Chemicals Engineer of French company Recherce Exploitation Produits (REP), and he told the Bulletin that his first impression of the country is very positive, adding that with regards to business, it’s a matter of opportunity. “To make business you need two parties – one offering a service and one willing to buy a service,” he continued. “So even if I’m willing, if I don’t find a counterpart to buy into business, then it’s not going to work, but business comes later.” He added, however, that from first impression things are looking very good, and his company can come back with no problems. “My company is REP, and it specialises in manufacturing and blending specialty chemicals for oilfields, oil, water and gas treatments,” he explained. “They are customised, tailor-made products, meaning that for every application we have one selected, suitable product.” He went on to say that he is representing his company here because they are interested in doing business here, explaining that Brunei as a Southeast Asian market is very interesting. “It’s a growing market and there is a place for new players or new companies to introduce new technologies.” He also said that while they are yet to have a company office in Brunei, they are looking for a local representative. “That’s one of our aims in coming here, aside from the market, is to identify a local representative for the promotion and the development of our chemicals to the local market.” Mashhor Group of Companies was one of the local companies present for the meetings yesterday. Their Business Development Manager (Bandar), Wan Shahin Hairuddin also spoke to the Bulletin. “All the companies coming here are big companies and are very capable in the sector of oil and gas industry,” he said. “As you know Mashhor is very experienced in the oil and gas industry, and we have identified a few companies to pursue if we can work with them in the future for certain projects or maybe even for current projects as well. “These companies from France are very experienced internationally, and we are happy to have them here, and sometimes we need the international experience for us to develop even more, especially in the oil and gas industry.” He said that they do see areas in which they could possibly work together, though he added they are “banking on the future opportunities”, citing engineering design, as well as heat exchanges and marine construction as examples. Wan Shahin went on to describe the B2B meeting as being fruitful because they found prospective companies.
Borneo Bulletin - Danial Norjidi |
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