Local Business Development Quadrants

Local Business Development

The BSJV Local Business Development Framework reflects the Energy and Industry Department, Prime Minister's Office Directive No. 2 Local Business Development Framework for the Oil & Gas Industry which was been in effect since 1st February 2012. Click the links below to find out more about EIDPMO's LBD Directives and BSJV's LBD Policy

LBD Requirements

Determines eligible contractors, targets for Local Employment and Local Content under the respective LBD Quadrants.

Highly Specialized

  • ​Open to All Companies
  • Local Employment target = best endeavors
  • Local Content target = best endeavors

Core

  • Open to All Companies
  • Local Employment target = 50-90%
  • Management target > 50% local
  • Local Content target > 50%
  • Maximise and use of local contradictors

Basic

  • Open to Bumiputra companies only
  • Local Employment target > 90%
  • Local Content target > 70%
  • Actively managed by Owners
  • Management target = 100%

Development

  • Open to Local Companies only
  • Local Employment target > 50-90%
  • Local Content target > 70%
  • Actively managed by Owners
  • Management target > 50% local (by January 2013)
  • Maximise use of local sub-contractors

Quadrant Features

Determines how each work category falls under the respective quadrants based on the level of technology involved and Total Authorised Contract Value (ACV) for the overall category. Contract period might impact the allocation of categories e.g. from Highly Specialised to Core if it changes duration from short term to long term.

Highly Specialized

  • ​Total ACV < B$ 10 mil
  • Specialized or proprietary work / equipment (OEM)
  • High level of investment / risk
  • Involves high technology
  • One off or call of basis
  • Limited opportunity for technology transfer

Core

  • ​Total ACV > B$ 10 mil
  • Complex services or high specs material / equipment requiring local services support
  • Very capital intensive
  • Involves high technology
  • Long term requirement
  • Opportunity for technology transfer
  • Opportunity for training of locals

Basic

  • ​Total ACV < B$ 10 mil
  • Small routine services
  • Supply of items for general use and readily available in local market.
  • Low level of investment / financial risk
  • Low technology involvement
  • Low level of technical / management experience
  • Opportunity for "Open Tenders"
  • Opportunity for training of locals

Development

  • ​Total ACV > B$ 10 mil
  • Technical expertise and experience required
  • Complex services and / or resource intensive
  • Equipment after sales support and maintenance / spares
  • Medium level of investment / risk
  • Long term requirement
  • Opportunity for training of local

 Basic

  • Open to companies fully owned by Bumiputra (Brunei citizens belonging to the indigenous groups of the Malay race namely: Belait, Bisayah, Brunei, Dusun, Kedayan, Murut and Tutona) only.
  • Must be actively managed by the Owners / Proprietors
  • Minimum is to be registered under the Business Names Act (Cap 92)
  • Bumiputra companies active in other Quadrants (Development, Core or Highly Specialised) are excluded from the Basic Quadrants.

 Development

  • Open to companies fully owned by Brunei citizens (Subjects of His Majesty the Sultan and Yang Di-Pertuan, holding a Brunei Yellow Identity Card) only.
  • Actively managed by the Owner / Proprietors
  • Must be registered under the Companies Act (Cap 39)

 Core

Open to all companies including Joint Venture Companies and International Companies.

 Highly Specialised

Open to all companies including Joint Venture Companies and International Companies.