BSP Seeks Local Businesses Support To Create Better Future

Posted on  04/11/2011  |  Media Centre

FRIDAY, 04 NOVEMBER 2011 07:03

Bandar Seri Begawan – Local business development is a pillar towards creating a sustainable economy for Brunei Darussalam, requiring a strong set of foundation and paradigm shifts, and Brunei Shell Petroleum is devoted towards being at the forefront in continuing to fuel the country’s future.

These were the words of Mr Ken Marnoch, Managing Director of Brunei Shell Petroleum (BSP), speaking during the future flash segment of the Local Business Development Forum 2011, which took place at the Radisson Hotel yesterday.

During the Future Flash segment, Mr Ken Marnoch covered three main areas, namely the global energy outlook, Brunei’s energy outlook, as well as BSP’s future activities, and what this means for Brunei.

Speaking on the global energy outlook, Mr Marnoch said, “Today we are facing three challenges to achieve a more sustainable energy future. First is the rising level of world’s growing population, second, the increasing wealth as more people escape poverty and thirdly, rapid urbanisation.”

“Shell sees global energy demand potentially tripling from 2000 levels to 2050, a4rajectory that the company estimated could be curbed either by policy or by economic shock – however only by about 20 per cent, while supply is on track to increase just 50 per cent.”

To keep pace with demand, the world will need to invest heavily in all energy sources, he said, from oil and natural gas, to biofuels, nuclear power, solar and wind. Citing the International Energy Agency (IEA), Mr Marnoch said that some US$33 trillion of cumulative investment in the global energy supply infrastructure will be needed between 2010 and 2035, and that simultaneously, the world must make the transition to a more sustainable energy system.

Over time, renewable energy sources, like biofuels, wind power and solar energy, will meet a growing share of demand, he continued, saying Shell has projected that by 2050, renewables could supply as much as 30 per cent of the world’s energy, an increase from 13 per cent today.

“Even doing that would be a massive challenge, requiring historically unprecedented growth rates for new forms of energy,” he said. “It would also mean that fossil fuels would still, even in 2050, supply over 60 per cent of global energy, with nuclear accounting for the remainder.”

Shell is advocating for natural gas to fuel power thq future as it will help counter the incremental increase of CO2 emissions with the next 20 years, he added. With regard to Brunei’s energy outlook and BSP’s future activities, the Managing Director said that there are growing energy needs in the country.

“Brunei is already gearing towards diversifying its economic base to realise its vision of Wawasan Brunei 2035′ – to produce well-educated and highly-skilled citizens as measured by the highest international standards, attain high quality of life; and develop a dynamic and sustainable economy with income per capita, within the top 10 in the world.”

He also talked about how Brunei’s Energy White Paper has outlined its three strategic goals, which are to strengthen and grow upstream and downstream activities; ensure secure, reliable and efficient supply and usage of energy in Brunei and to maximise the economic spin-off from the energy sector activities for local business and job opportunities.

“To get there, we need to prepare now and build up the development blocks in terms of human capital, infrastructure, policies and be more innovative in the way we work and think,” he said. “Aligning to this, Brunei Shell Petroleum has been working on its future roadmap and strategy. There will be increasing activities to support the oil and gas industry which would definitely require the support from local business or local supply chain.”

He spoke about what this means for local business and employment opportunities in Brunei Darussalam, saying, “Today the Brunei Shell Joint Venture (BSJV) companies along with our business partners contribute to the about 90 per cent of Brunei’s oil and gas revenues, which in turn accounts for over half of the country’s GDP and 90 per cent of total export earnings.

“Last year, the total spending with Bruneian companies was B$2.8 billion. The breakdown showed that 40 per cent was spent with Bruneian companies and 26 per cent was spent with Bruneian joint ventures. In terms of local employment, 20,000 people are employed directly by companies associated with the BSJV operations and 10,000 are Bruneians.”

Touching on the goals of the Ministry of Energy for employment in its White Paper, that is to create 50,000 employment opportunities by 2035 and see the local content gradually increase to around 80 per cent, he said that this is 5,000 professionals and 35,000 skilled or semi-skilled workers, with five or more Bruneian companies competing regionally, no monopolies and more Bruneian-owned and managed companies.

“These goals are certainly possible. However, they are not going to happen by themselves and just continuing to do what we have done before is also not going to get us there. Local business development must be as fundamental in the way we do business as safety and business integrity – there is simply no alternative.”

Realising the massive potential for further growth in developing local business and the importance of small and medium enterprises or SMEs to support Brunei’s economic activities, Brunei Shell Petroleum has always been at the forefront through a number of its initiatives, detailing its LiveWIRE Brunei programme as an example.

He also stressed the importance for industry to work together with the government in areas such as education.

“How do we align education with the needs of industry and how do we make the great career options we offer more visible when children and parents are discussing their educational choices?” he asked.

“Together we achieve more.”

Courtesy of Borneo Bulletin

Please click here for the original article