Sumitomo/Nippon Steel has been supplying OCTGs to Brunei Shell Petroleum (BSP) for more than 40 years. With this long-term relationship in place and Brunei Shell Joint Venture companies commitment to LBD, a project was initiated with Sumitomo/Nippon to build and operate a local OCTG threading plant (OCTG LBD Project) in Brunei. 
The aim of this project is to ensure supply of OCTG and importantly maximize opportunities for local employment and facilitate foreign direct investment. The objectives of the OCTG LBD project are to:- Create the first high technology manufacturing facility in Brunei Darussalam with the construction of an OCTG Threading Plant. This will enhance Local Content by:Increase Foreign Direct Investment,Increase Local Employment,Skills & Technology transfer,Increase Local Spend,Create further opportunities via spin off industries. Deliver world class inventory and logistical OCTG management capability in country through an OCTG One Stop Shop (OSS). BSP will outsource OCTG management end to end and pay for installed OCTG only. OSS will manage stock levels to meet BSP's demand. The OCTG's will be stored at the supplier's facility. This adds Business Value by removing all internal BSP OCTG supply chain management costs
This project to create Brunei's first high tech manufacturing facility has only been made possible through excellent collaboration between Shell global, BSP and the Government of Brunei Darussalam. This collaboration culminated in the signing of a long term contract (10+10) with Sumitomo/Nippon steel and BSP in November 2014. | 