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Hengyi Industries, Brunei's Damai enter new JV

(Xinhua) Updated: 2014-02-26 16:22

BANDAR SERI BEGAWAN - Petrochemical giant Hengyi Industries Sdn Bhd (Hengyi) from China announced here Tuesday that the company and Hongkong Tianyi International Holding Company Limited had entered into a Joint Venture Agreement with Damai Holdings Limited, a wholly owned subsidiary of Strategic Development Capital Fund (SDCF), a Brunei government trust sub- fund to undertake the Oil Refinery and Aromatics Cracker Plant Project at Pulau Muara Besar.

Hongkong Tianyi International Holding Company Limited, a wholly owned subsidiary of Zhejiang Hengyi Petrochemical Co Ltd will hold 70 percent equity stake in the joint venture whilst Damai Holdings Ltd will hold the remaining 30 percent. The parties will conduct the project through Hengyi Industries as the joint venture company.

"Hengyi Industries is delighted to join forces with Damai Holdings Limited as our equity partner. This joint venture agreement fits the investment strategy of Hengyi Petrochemical Co Ltd and marks a significant milestone in the development of the petrochemical project at Pulau Muara Besar," remarked Mr Qiu Jian Lin, chairman of Hengyi Petrochemical Co Ltd.

"Our commitment in the Pulau Muara Besar project in Brunei Darussalam has given potential partners in the petrochemical industry much confidence in Hengyi Industries as a responsible and competent operator. The signing of the Joint Venture Agreement with Damai Holdings Limited is a testament to that confidence,"he added.

Hengyi Industries is planning the investment, construction, operations and maintenance of an Integrated Oil Refinery and Aromatics Cracker plant on Pulau Muara Besar. The investment for Phase 1 of the project is expected to amount to approximately $4 billion, creating about 780 job opportunities in the country.

The construction for Phase 1 is scheduled to begin as soon as possible once all conditions for construction are satisfied. Upon completion of Phase 1, the facility will be able to produce petroleum products such as gasoline, diesel, Jet A-1 fuel and petrochemical products such as paraxylene and benzene, which would contribute in extending the value chain of the oil and gas sector in Brunei.

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