Potential Investors briefed on Pulau Muara Besar Borneo Bulletin Monday 29 th October 2007

14. Potential Investors briefed on Pulau Muara BesarBorneo BulletinMonday 29th October 2007 Brunei’s Pulau Muara Besar is open for investors to make it into an export processing zone. Part of the development in Pulau Muara Besar will include the export processing zone that will accommodate industries such as Aluminium smelting, halal food distribution, petrochemical, oil refining and warehousing

15. Chinese Company Signs land lease with BEDB for US$4 billion project • Bandar Seri Begawan - China's largest chemical fibre producer, Zhejiang Hengyi, and the Brunei Economic Development Board (BEDB), yesterday inked a land lease agreement for Hengyi's US$4 billion Integrated Refinery and Aromatics Cracker Project that will be located at Pulau Muara Besar. • The Integrated Refinery and Aromatics Cracker Project was initially estimated to be worth US$2.5 bilion in July 2011, when BEDB first announced its endorsement of the project. However, Hengyi's feasibility studies found that the amount of investment for the mega project would be over US$4billion. It is expected to create some 800 direct jobs and many more indirect jobs through spin-off industries. • The project will include the production of petroleum products such as gasoline, diesel and jet A-1 fuel, as well as petrochemicals such as paraxylene and benzene that are mainly used in the textile industry. A portion of the crude oil feedstock will be sourced locally and a portion of the gasoline, diesel and jet A-1 fuel produced will be marketed domestically, according to Hengyi. • The land lease agreement between the BEDB and Hengyi reflects their commitment of the Integrated Refinery and Aromatics Cracker Project and substantiates the 260 hectares of land on Pulau Muara Besar that has been reserved for it. • The agreement was signed by Mr Qui Jian Lin, the Chairman of Hengyi, and Mr Vincent Cheong, the Chief Executive Officer of BEDB. • Following the signing ceremony, Hengyi also held an inauguration of its office located at The Empire Hotel and Country Club, which is a well-established two-level office space. The office, which is capable of accommodating some 80 staff, is an indication of Hengyi's long-term commitment in Brunei. • Hengyi also revealed its blue print for the future development of Pulau Muara Besar, which is envisaged to be the production hub for petrochemical industries in the near future. • "The signing of the land lease agreement and the office inauguration demonstrates Hengyi's commitment to further accelerate progress of the project on Pulau Muara Besar, which will bring substantial social and economic benefits to Brunei Darussalam," Hengyi said in a statement. "The project will create a significant boost in local employment, create growth opportunities for local companies, indirect spin-offs and increased economic activities such as construction and logistics, as well as training and development opportunities in relevant fields." • "(The Integrated Refinery and Aromatics Cracker Project) is a good project for the country because it is a sizeable investment," CEO of BEDB told the Weekend Bulletin. "It will create a substantial amount of job opportunities (and) increase our exports (while at the same time) taking very little out of our raw materials." • Mr Zheng Xianglin, the Ambassador of the People's Republic of China, noted that with the inauguration ceremony yesterday, Hengyi has thus settled down in Brunei and has formally become one of the dynamic members of Brunei's local society. • "I believe all (future) tasks of Hengyi will be responded to with the consistent support of the Brunei Government and communities, and (that the country's) social and economic progress would tremendously benefit from the smooth construction and operation of the Hengyi project on Pulau Muara Besar," he said, adding that the decision to invest in Brunei was a wise move made by Hengyi and its chairman, Mr Qui Jian Lin. • According to the Chinese ambassador, friendly relations between Brunei and China date back many decades, and substantial development in bilateral relation has been achieved since diplomatic relationships were established more than 20 years ago. • Noting that China's top political advisor, Mr Jia Qinglin, the Chairman of the 11th National Committee for the Chinese People's Political Consultative Conference, had just concluded his successful visit to Brunei an hour before yesterday's inauguration ceremony, the Chinese ambassador reaffirmed that the establishment of Hengyi Industries Sdn Bhd was very auspicious. • --Courtesy of Borneo Bulletin April 2012