Answer for Oral Question PL193

QUESTION

Yang Berhormat Dr. Awang Haji Mahali bin Haji Momin

YANG BERHORMAT DR. AWANG HAJI MAHALI BIN HAJI MOMIN asked YANG BERHORMAT MENTERI DI JABATAN PERDANA MENTERI to state how the Government is shifting from reactive approaches such as stockpiling towards proactive scenario planning and risk assessment to strengthen the country’s resilience in facing increasingly complex geopolitical, economic and environmental shocks as well as disruptions to global supply chains.

ANSWER

Yang Berhormat Menteri di Jabatan Perdana Menteri

The Brunei Refinery in Seria (Brunei Shell Refinery – BSR) was closed in 2021 after operating for almost four decades. Since then, work to clear the facilities of hydrocarbons and ensure that the site was in a safe condition has been successfully completed. At present, the site remains within the concession area of Brunei Shell Petroleum Sendirian Berhad (BSP).

To assess the potential reuse of the site, BSP, in collaboration with the Brunei Economic Development Board (BEDB), conducted a comprehensive assessment, including market engagement through a Request for Information (RFI), to evaluate the potential reuse of the site. Based on the findings of the assessment, a decision was made to proceed with the demolition of the refinery facilities.

At present, BSP is developing a contract strategy for the demolition works, including the management of recyclable materials to obtain optimum value. An assessment is also being conducted to identify certain facilities, such as warehouses and workshops, which could potentially be managed separately to improve the efficiency of the decommissioning and site restoration process.

The implementation plan and detailed work schedule are expected to be finalised this year, in 2026. The demolition works are expected to commence in 2027 and take approximately two years to complete.

The BSR site, which covers approximately twelve point six seven (12.67) hectares, has a strategic location due to its proximity to oil and gas infrastructure that remains operational, including the Seria Crude Oil Terminal (SCOT), as well as its access to the main road network in the Seria area. The long-term development potential of the area will be further assessed. Among the options being considered are retaining the site to support the future operational needs of the oil and gas sector or handing it over to the Government for appropriate industrial and economic development.