Nippon Steel Corporation and Sumitomo Corporation have extended their contract with Brunei Shell Petroleum Company, securing a 10-year extension for the supply of oil country tubular goods. The agreement includes local threading services and supply chain management. With a history of over 50 years, the partnership has been crucial in delivering seamless OCTG to Brunei Shell Petroleum. The extension showcases the commitment to local employment and the seamless supply of high-quality products, contributing to Brunei's economy and ensuring a stable energy supply to Japan and other Asian countries.
In a significant development in Brunei, Nippon Steel Corporation and Sumitomo Corporation have inked a revised contract with Brunei Shell Petroleum Company, extending their partnership for another 10 years. The renewed agreement encompasses the supply of oil country tubular goods (OCTG), complete with local threading services and supply chain management.
For more than half a century, Nippon Steel and Sumitomo Corporation have played a pivotal role in delivering seamless OCTG to Brunei Shell Petroleum, a key player in the production of crude oil and natural gas in the region. Since 2014, a strategic contract has been in place, paving the way for the establishment of VAM® BRN SDN BHD—a cutting-edge OCTG threading facility. Jointly owned by Nippon Steel (60%), Sumitomo Corporation (30%), and Vallourec Tubes SAS (10%), VAM® BRN has not only contributed to local employment but has also played a crucial role in the local supply chain of OCTG.
Sumitomo Corporation, in tandem with these efforts, established SC Tubular Solutions (B) Sdn Bhd (SCTSB), a supply chain management company situated alongside VAM® BRN. This dual initiative has not only created local job opportunities but has also facilitated a just-in-time supply service of OCTG with Brunei Shell Petroleum.
The extension of this contract is attributed to the success of Nippon Steel and Sumitomo Corporation's total solutions, combining high-quality product delivery and efficient just-in-time supply chain management. The collaboration has stood the test of time, becoming a cornerstone in Brunei's energy sector.
In a global context, the significance of energy security has been underscored, particularly amid rising geopolitical risks. The partnership between Nippon Steel, Sumitomo Corporation, and Brunei Shell Petroleum is not only vital for the development of Brunei's economy but also contributes to a stable energy supply to Japan and other Asian countries.
As the world transitions towards a carbon-neutral society, the role of natural gas and LNG becomes increasingly crucial. Nippon Steel and Sumitomo Corporation, through this extended partnership, aim to play a significant role in realizing a sustainable energy future while fostering economic development in Brunei.
The renewal of the decades-long contract between Nippon Steel, Sumitomo Corporation, and Brunei Shell Petroleum signifies not only a commitment to a robust and enduring partnership but also a strategic move towards ensuring energy security and economic development. The extension, covering OCTG supply, local threading, and supply chain management, underscores the success of the collaboration's total solutions approach. As the world grapples with energy transitions and geopolitical challenges, this partnership stands as a beacon of stability, contributing to Brunei's economy and ensuring a reliable energy supply to Japan and other Asian nations.