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74-654: Brunei Shell Petroleum ( BSP ) is a joint venture between the Royal Dutch/Shell Group and government of Brunei , primarily responsible for the exploration and production of oil and liquefied natural gas (LNG). Originally known as the British Malayan Petroleum Company ( BMPC ), it was established in 1922. BSP is crucial to Brunei's economy and political landscape, particularly regarding oil development and resource management . Its establishment and growth were closely tied to

148-1018: A temporary partnership for the purpose of carrying out a particular project, such partnership can also be called a joint venture where the parties are " co-venturers ". The venture can be a business JV (for example, Dow Corning), a project/asset JV intended to pursue one specific project only, or a JV aimed at defining standards or serving as an "industry utility" that provides a narrow set of services to industry participants. Some major joint ventures include United Launch Alliance , Vevo , Hulu , Virgin Media O2 , Penske Truck Leasing , and Owens-Corning . According to Gerard Baynham of Water Street Partners, there has been much negative press about joint ventures, but objective data indicate that they may actually outperform wholly owned and controlled affiliates . He writes, "A different narrative emerged from our recent analysis of U.S. Department of Commerce (DOC) data, collected from more than 20,000 entities. According to

222-439: A 2.2 percent average ROA, while wholly owned and controlled affiliates in the U.S. only realized a 0.7 percent ROA." In European law , the term "joint venture" is an exclusive legal concept, better defined under the rules of company law . In France , the term "joint venture" is variously translated as "association d'entreprises", "entreprise conjointe", "coentreprise" or "entreprise commune". A JV can be brought about in

296-642: A 4.5 kilometres (2.8 mi) dock with stainless steel tubes for gas transportation and a unique water purification system. With the exception of the Gurkha security forces, the enterprise requires a significant amount of finance and employs around 100 individuals. BSM was founded in 1974 to distribute oil and gas products within Brunei and is jointly owned by the government and Shell, with its headquarters located in Bandar Seri Begawan. The company offers

370-526: A company. By its formation, the JV becomes a new entity with the implications that: On the receipt of the Certificate of Incorporation, a company can commence its business. This is a legal area and is fraught with difficulty as the laws of countries differ, particularly on the enforceability of "heads of" or shareholder agreements. For some legal reasons, it may be called a Memorandum of Understanding . It

444-421: A given date forward, from known reservoirs, and under existing economic conditions, operating methods, and government regulations—prior to the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether deterministic or probabilistic methods are used for the estimation. The project to extract the hydrocarbons must have commenced or

518-512: A near-monopoly despite the existence of competing businesses including Jasra-ELF (previously Jasra Jackson), Sunray Borneo Oil Company, Superior Oil , Clark Brunei Oil, and Woods Petroleum. As its interest in the oil and gas industry grew, the Bruneian government purchased a 25% share in BSP in 1973. The government's role in the sector was further cemented in 1985 when this share rose to 50%. BSP

592-419: A new market, particularly emerging market ; to gain scale efficiencies by combining assets and operations; to share risk for major investments or projects; or to access skills and capabilities. Most joint ventures are incorporated, although some, as in the oil and gas industry , are "unincorporated" joint ventures that mimic a corporate entity. With individuals, when two or more persons come together to form

666-496: A principal disadvantage is absence of an interested and influential Chinese party. As of the 3rd Quarter of 2004, WFOEs had replaced EJVs and CJVs as follows: (*)=Financial Vventures by EJVs/CJVs (**)=Approved JVs These enterprises are formed under the Sino-Foreign Investment Act. The capital is composed of value of stock in exchange for the value of the property given to the enterprise. The liability of

740-459: A shipment to Japan, initially managed by BST for three decades. The first four carriers were delivered between October 1972 and October 1975, with a maximum storage capacity of 77,731 cubic metres (2,745,000 cu ft). The seven French-built LNG carriers were Bebatik , Bekalang , Bekulan , Belais , Belanak , Bilis and Bubuk . Once BST was established in 1986, they went on to operate these ships. Brunei Gas Carriers (BGC)

814-458: A variety of products, including gasoline , aviation fuel , diesel oil , lubricants, butane gas cylinders , and certain chemical products like insecticides and detergents. Holding a monopoly on petroleum sales in the state, BSM has experienced significant sales growth, particularly as the number of motor vehicles in Brunei has risen. The company operates 21 petrol stations across the country, all supplied by its network, with fuel prices regulated by

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888-593: Is a joint venture consisting of 25% BSP, 25% Mitsubishi Corporation , and 50% Bruneian government. In a similar vein, the Bruneian government owns 50% of BCG, which was established in 1977 to manage LNG marketing, while BSP and Mitsubishi each control a third. Last but not least, the BST, which was founded in December 1986 and is equally owned by the BSP and the Bruneian government, manages the shipping of LNG to Japan. The history of Bruneian LNG deliveries began in 1972 with

962-476: Is a conglomerate comprising five businesses as of 1997. Exploration and production of oil and LNG are handled by the primary business, BSP. Brunei Shell Marketing, formed in 1974, focuses on selling oil and gas products within Brunei, with ownership equally divided between the Brunei government and BSP. The LNG trade with Japan is the main activity of the other three businesses, Brunei Shell Tankers (BST), Brunei Coldgas (BCG), and Brunei LNG . Established in 1969, BLNG

1036-440: Is a high risk investment and risk assessment is paramount for successful project portfolio management . Exploration risk is a difficult concept and is usually defined by assigning confidence to the presence of the imperative geological factors, as discussed above. This confidence is based on data and/or models and is usually mapped on Common Risk Segment Maps (CRS Maps). High confidence in the presence of imperative geological factors

1110-404: Is a potential trap which geologists believe may contain hydrocarbons. A significant amount of geological, structural and seismic investigation must first be completed to redefine the potential hydrocarbon drill location from a lead to a prospect. Four geological factors have to be present for a prospect to work and if any of them fail neither oil nor gas will be present. Hydrocarbon exploration

1184-404: Is allowed to enter into contracts with appropriate government authorities to acquire land use rights, rent buildings, and receive utility services. In this it is more similar to a CJV than an EJV. WFOEs are expected by PRC to use the most modern technologies and to export at least 50% of their production, with all of the investment is to be wholly provided by the foreign investor and the enterprise

1258-604: Is described below. The EJV Law is between a Chinese partner and a foreign company. It is incorporated in both Chinese (official) and in English (with equal validity), with limited liability. Prior to China's entry into WTO – and thus the WFOEs – EJVs predominated. In the EJV mode, the partners share profits, losses, and risk in equal proportion to their respective contributions to the venture's registered capital. These escalate upwardly in

1332-470: Is done in parallel with other activities in forming a JV. Though dealt with briefly for a shareholders' agreement , some issues must be dealt with here as a preamble to the discussion that follows. There are also many issues which are not in the Articles when a company starts up or never ever present. Also, a JV may elect to stay as a JV alone in a "quasi partnership" to avoid any nonessential disclosure to

1406-606: Is expected to assume some responsibilities from the Petroleum Unit, including determining output levels and granting concession rights. On 20 July 1922, the British Malayan Petroleum Company was established under the Royal Dutch-Shell group and registered as a business in the United Kingdom. The Asiatic Petroleum Company and Shell's Anglo-Saxon Petroleum Company sold oil-prospecting concessions to

1480-477: Is usually coloured green and low confidence coloured red. Therefore, these maps are also called Traffic Light Maps, while the full procedure is often referred to as Play Fairway Analysis (PFA). The aim of such procedures is to force the geologist to objectively assess all different geological factors. Furthermore, it results in simple maps that can be understood by non-geologists and managers to base exploration decisions on. Petroleum resources are typically owned by

1554-470: Is what will happen if the firm is dissolved, if one of the partners dies, or if the firm is sold. Often, the most successful JVs are those with 50:50 partnership with each party having the same number of directors but rotating control over the firm, or rights to appoint the Chairperson and Vice-chair of the company. Sometimes a party may give a separate trusted person to vote in its place proxy vote of

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1628-515: Is within his total control. WFOEs are typically limited liability enterprises. Like with EJVs, but the liability of the directors, managers, advisers, and suppliers depends on the rules which govern the Departments or Ministries which control product liability, worker safety or environmental protection. An advantage the WFOE enjoys over its alternates is enhanced protection of its know-how but

1702-645: The Seria Energy Lab in 2002, the BSP Flagship Solar Plant in 2021, and the Brunei Energy Hub in 2023 are just a few of the community projects that BSP has undertaken and sponsored. The Brunei Shell Joint Venture (BSJV) Scholarship Scheme, established in 1972, has provided educational sponsorships to over 800 students. The scheme aims to identify talented young Bruneians with the qualifications and potential needed to support

1776-507: The Sultan of Brunei 's decisions, as BSP provided essential insights into oil discoveries that influenced the Sultan's stance on joining Malaysia, thereby shaping the country's economic and political independence . Due to a lack of personnel, Brunei does not want to create a state oil corporation; nevertheless, the government does intend to raise its stake in BSP and solidify its influence over

1850-486: The World Trade Organization (WTO) around 2001 has had profound effects on foreign investment. Not being a JV, they are considered here only in comparison or contrast. To implement WTO commitments, China publishes from time to time updated versions of its "Catalogs Investments" (affecting ventures) prohibited, restricted. The WFOE is a Chinese legal person and has to obey all Chinese laws. As such, it

1924-580: The energy industry . The Petroleum Unit, a division of the Prime Minister's Office , plays a crucial role in formulating policies for production, conservation, and pricing, while also overseeing Brunei Shell companies through board participation. In early 1993, a new government body, the Brunei Oil and Gas Authority, was created, headed by the Minister of Finance and Economy . This organisation

1998-450: The "constitution" of a company in these countries. The articles of association regulate the interaction between shareholders and the directors of a company and can be a lengthy document of up to 700,000 or so pages. It deals with the powers relegated by the stockholders to the directors and those withheld by them, requiring the passing of ordinary resolutions , special resolutions and the holding of Extraordinary General Meetings to bring

2072-456: The 1962 Brunei revolt, BSP oil installations were the focus of the TNKU rebels' coordinated attacks on government buildings and police stations around the protectorate and in the oil town of Seria. The BSP traded in earlier, less fruitful concessions in order to get new ones in 1963. About 4,000 square kilometres (1,500 sq mi) of the continental shelf and an extra 680 square kilometres of

2146-922: The Anglo-Saxon Petroleum Company in the Tutong District was renewed in November 1922 under the new name of the BMPC. Later, on 28 July 1923, an agreement was made for the BMPC to acquire the British Borneo Petroleum Syndicate's Belait District properties. The BMPC carried out an aerial reconnaissance on 9 March 1925, and neither the Sarawakian nor Bruneian governments objected to the plan. After encountering difficulties in Labi, BMPC shifted its focus to

2220-460: The Asia-Pacific region. Established in 1998, BGC has successfully transported over 7,000 LNG cargoes to global markets. BGC has successfully completed over 7,000 LNG cargo deliveries, earning a stellar safety record and establishing itself as a dependable player in the global LNG market. In 1969, the government, Shell, and Mitsubishi Corporation formed Brunei LNG as a joint venture. Over time,

2294-632: The BMPC the same year, giving the BMPC broad mining and prospecting rights in Brunei. Shell gained nearly monopolistic control over oil exploration in Borneo as a result of the arrangement, which saw the BMPC pay a royalty of two shillings per ton (or 10% in kind) to the Bruneian government and another shilling to the British Borneo Petroleum Syndicate. In 1922, BMPC began oil exploration in Labi , Brunei, where previous attempts by other companies had failed to yield significant results. The prospecting license of

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2368-459: The DOC data, foreign joint ventures of U.S. companies realized a 5.5 percent average return on assets (ROA), while those companies' wholly owned and controlled affiliates (the vast majority of which are wholly owned) realized a slightly lower 5.2 percent ROA. The same story holds true for investments by foreign companies in the U.S., but the difference is more pronounced. U.S.-based joint ventures realized

2442-540: The Earth). However, most exploration depends on highly sophisticated technology to detect and determine the extent of these deposits using exploration geophysics . Areas thought to contain hydrocarbons are initially subjected to a gravity survey , magnetic survey , passive seismic or regional seismic reflection surveys to detect large-scale features of the sub-surface geology. Features of interest (known as leads ) are subjected to more detailed seismic surveys which work on

2516-640: The Founder at board meetings. Recently, in a major case the Indian Supreme Court has held that Memorandums of Understanding (whose details are not in the articles of association) are "unconstitutional" giving more transparency to undertakings. A JV is not a permanent structure. It can be dissolved when: Joint ventures are risky forms of business partnerships . Literature in business and management has paid attention to different factors of conflict and opportunism in joint ventures, in particular

2590-464: The JV's life, giving the option to the foreign investor, by holding higher equity, obtains a faster rate of return with the concurrent wish of the Chinese partner of a later larger role of maintaining long-term control. The parties in any of the ventures, EJV, CJV or WFOE prepare a feasibility study outlined above. It is a non-binding document – the parties are still free to choose not to proceed with

2664-576: The Seria oil field were included in these new concessions. The sultan of Brunei's decision to refrain from joining Malaysia in 1963 was primarily due to unresolved issues regarding the future of Brunei's oil economy with the Federation of Malaya . The BSP played a role in this decision by informing the Sultan of a significant oil discovery, cautioning that joining Malaysia could jeopardise Brunei's control over its oil resources. In 1966, concerns arose that

2738-508: The Shell agreement, Brunei continued to cover the battalion's expenses, making it more economical for Britain to sustain their presence in Brunei. When oil prices started to decline in 1985, Japanese customers lost faith in Brunei's long-term contract and demanded a review of the agreement. As of 1997, BSP has 10,107 square kilometres of concession land, of which 73% is used for offshore activities. In oil exploration and production, BSP maintains

2812-602: The Sultan might retaliate against British actions by denying concessions to Shell and withdrawing sterling reserves from the Bank of England . During this period, the British government benefited from substantial profits from BSP, while Brunei held significant reserves in London . In 1968, BSP obtained a further offshore concession that included 298 square kilometres close to Labi and 3,735 square kilometres, some of which extended beyond

2886-536: The US) covering know-how and trademarks and supply-of-equipment agreements. The minimum equity is prescribed for investment truncated, where the foreign equity and debt levels are: There are also intermediary levels. The foreign investment in the total project must be at least 25%. No minimum investment is set for the Chinese partner. The timing of investments must be mentioned in the Agreement and failure to invest in

2960-514: The area between the Seria and Bera rivers, where it successfully struck large oil deposits, now known as the Seria oil field , in April 1929. By 1949, BMPC had expanded its exploration efforts to include Brunei Town (now Bandar Seri Begawan ), Tutong , and the areas between Seria and Labi. Offshore exploration began in 1952 as production in Seria and Jerudong stabilised. The Brunei Shell Petroleum

3034-480: The capital. In addition to significantly boosting Brunei's economy through oil production, the BMPC played a crucial role in developing infrastructure in the Belait District , particularly in Seria and Kuala Belait . Like its predecessor, the BSP remains vital to the growth of the Bruneian economy. Shell not only contributes to the nation’s revenue but is also the second-largest employer in Brunei, following

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3108-461: The cases, the status of the formed enterprise is that of a legal Chinese person which can hire labor directly as, for example, a Chinese national contactor. The minimum of the capital is registered at various levels of investment. Other differences from the EJV are to be noted: Convenience and flexibility are the characteristics of this type of investment. It is therefore easier to find co-operative partners and to reach an agreement. With changes in

3182-503: The continental shelf. In order to maintain its position as Brunei's top concessionaire, BSP acquired an extra 3,530 square kilometres of offshore concessions by 1981. In 1975, the Brunei government established a 50-50 shareholding arrangement with the Royal Dutch Shell Group for the exploitation of Brunei's resources. Fears from the British government regarding Brunei's potential withdrawal from this agreement prompted

3256-574: The country's growth. It offers scholarships for students pursuing undergraduate studies after completing their A-levels or the International Baccalaureate Diploma. Citations Sources Joint venture A joint venture ( JV ) is a business entity created by two or more parties, generally characterized by shared ownership , shared returns and risks , and shared governance. Companies typically pursue joint ventures for one of four reasons: to access

3330-622: The death of Mao Zedong in 1976, initiatives in foreign trade began to be applied, and law applicable to foreign direct investment was made clear in 1979, while the first Sino-foreign equity venture took place in 2001. The corpus of the law has improved since then. Companies with foreign partners can carry out manufacturing and sales operations in China and can sell through their own sales network. Foreign-Sino companies have export rights which are not available to wholly Chinese companies, as China desires to import foreign technology by encouraging JVs and

3404-551: The decision to keep the British Gurkha battalion stationed in Brunei until 1983, even after the country gained independence in 1984. The British Ministry of Defence acknowledged that the Gurkhas not only provided essential security for Shell's personnel and installations but also offered valuable training opportunities for British officers. While the Brunei government denied any direct link between defence negotiations and

3478-503: The directors' decision to bear. A Certificate of Incorporation or the Articles of Incorporation is a document required to form a corporation in the U.S. (in actuality, the state where it is incorporated) and in countries following the practice. In the US, the "constitution" is a single document. The Articles of Incorporation is again a regulation of the directors by the stock-holders in

3552-471: The following major ways: In the UK , India , and in many common law countries, a joint-venture (or else a company formed by a group of individuals) must file its memorandum of association with the appropriate authority. This is a statutory document which informs the public of its existence. It may be viewed by the public at the office in which it is filed. Together with the articles of association , it forms

3626-483: The government increased its stake to 50%. The construction and operation of the Lumut LNG facility, which was finished in 1973, was the company's primary objective in order to export LNG to Japan. The facility, which was built with assistance from Brunei Shell, Air Products and Chemicals , and Nippon LNG KK, is an example of transnational cooperation. It was constructed at an estimated cost of B$ 600 million and includes

3700-570: The government of the host country. In the United States, most onshore (land) oil and gas rights (OGM) are owned by private individuals, in which case oil companies must negotiate terms for a lease of these rights with the individual who owns the OGM. Sometimes this is not the same person who owns the land surface. In most nations the government issues licences to explore, develop and produce its oil and gas resources, which are typically administered by

3774-423: The government or the public. Some of the issues in a shareholders' agreement are: There are many features which have to be incorporated into the shareholders' agreement which is quite private to the parties as they start off. Normally, it requires noтуОЧ submission to any authority. The other basic document which must be articulated is the Articles, which is a published document and known to members. This repeats

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3848-748: The government sector. As a result, Brunei is often referred to as a "Shell State" because of its robust economic position and the close relationship between the government and Shell. The Brunei Shell Recreation Club was established in 1946, the Kuala Belalong Fields Studies Centre in 1991, the Billionth Barrel Monument in 1991, the Anduki Recreation Park in 1992, the Outward Bound Brunei Darussalam in 1993,

3922-621: The government to remain low by international standards. High-octane petrol and diesel are imported from Singapore and stored in tanks at the Muara Port , which also supplies oil and petrol to riverine stations along the Brunei River and Temburong River . Additionally, Brunei Shell Marketing provides aviation fuels for the international airport in Bandar Seri Begawan and fuels for the main electricity generating plant located in Gadong , near

3996-567: The indicated time, draws a penalty. Co-operative Joint Ventures (CJVs) are permitted under the Sino-Foreign Co-operative Joint Ventures. Co-operative enterprises are also called Contractual Operative Enterprises. The CJVs may have a limited structure or unlimited – therefore, there are two versions. The limited-liability version is similar to the EJVs in status of permissions – the foreign investor provides

4070-539: The influence of parent control structure, ownership change, and volatile environment. Government procurement regulations, such as the Federal Acquisition Regulation (FAR) in the United States, may specify how joint ventures are to be approached as suppliers or confirm that a joint venture or other form of contractor partnering is seen as a "desirable" arrangement for supplying to government. The FAR states that The Government will recognize

4144-405: The integrity and validity of contractor team arrangements [including joint ventures], provided the arrangements are identified and company relationships are fully disclosed in an offer or, for arrangements entered into after submission of an offer, before the arrangement becomes effective. The Government will not normally require or encourage the dissolution of contractor team arrangements. Under

4218-719: The latest technologies. Under Chinese law, foreign enterprises are divided into several basic categories. Of these, five will be described or mentioned here: three relate to industry and services and two as vehicles for foreign investment. Those five categories of Chinese foreign enterprises are: the Sino-Foreign Equity Joint Ventures (EJVs), Sino-Foreign Co-operative Joint Ventures (CJVs), Wholly Foreign-Owned Enterprises (WFOE), although they do not strictly belong to Joint Ventures, plus foreign investment companies limited by shares (FICLBS), and Investment Companies through Foreign Investors (ICFI). Each category

4292-480: The law, it becomes possible to merge with a Chinese company for a quick start. A foreign investor does not need to set up a new corporation in China. Instead, the investor uses the Chinese partner's business license, under a contractual arrangement. However, under the CJV, the land stays in the possession of the Chinese partner. There is another advantage: the percentage of the CJV owned by each partner can change throughout

4366-562: The main asset of an oil company. Booking is the process by which they are added to the balance sheet. In the United States, booking is done according to a set of rules developed by the Society of Petroleum Engineers (SPE). The reserves of any company listed on the New York Stock Exchange have to be stated to the U.S. Securities and Exchange Commission . Reported reserves may be audited by outside geologists, although this

4440-402: The majority of funds and technology and the Chinese party provides land, buildings, equipment, etc. However, there are no minimum limits on the foreign partner which allows him to be a minority shareholder. The other format of the CJV is similar to a partnership where the parties jointly incur unlimited liability for the debts of the enterprise with no separate legal person being created. In both

4514-519: The new legislation, and Sultan Omar Ali Saifuddien III approved the inclusion of the name "Brunei" in the company's name. Furthermore, given the company's strong ties with the Royal Dutch-Shell Group, it was important to incorporate "Shell" to highlight its connection to the global operations of Royal Dutch-Shell. Its exploration area extended from Seria to Labi, Tutong, and Brunei Town after BSP assumed operations from BMPC. During

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4588-491: The oil ministry. There are several different types of licence. Oil companies often operate in joint ventures to spread the risk; one of the companies in the partnership is designated the operator who actually supervises the work. Resources are hydrocarbons which may or may not be produced in the future. A resource number may be assigned to an undrilled prospect or an unappraised discovery. Appraisal by drilling additional delineation wells or acquiring extra seismic data will confirm

4662-531: The operator must be reasonably certain that it will commence the project within a reasonable time. The term 1P is frequently used to denote proved reserves; 2P is the sum of proved and probable reserves; and 3P the sum of proved, probable, and possible reserves. The best estimate of recovery from committed projects is generally considered to be the 2P sum of proved and probable reserves. Note that these volumes only refer to currently justified projects or those projects already in development. Oil and gas reserves are

4736-427: The principle of the time it takes for reflected sound waves to travel through matter (rock) of varying densities and using the process of depth conversion to create a profile of the substructure. Finally, when a prospect has been identified and evaluated and passes the oil company's selection criteria, an exploration well is drilled in an attempt to conclusively determine the presence or absence of oil or gas. Offshore

4810-474: The project. The feasibility study must cover the fundamental technical and commercial aspects of the project, before the parties can proceed to formalize the necessary legal documentation. The study should contain details referred to earlier under Feasibility Study (submissions by the Chinese partner). There is basic law of the PRC concerning enterprises with sole foreign investment controls, WFOEs. China's entry into

4884-510: The risk can be reduced by using electromagnetic methods Oil exploration is an expensive, high-risk operation. Offshore and remote area exploration is generally only undertaken by very large corporations or national governments. Typical shallow shelf oil wells (e.g. North Sea ) cost US$ 10 – 30 million, while deep water wells can cost up to US$ 100 million plus. Hundreds of smaller companies search for onshore hydrocarbon deposits worldwide, with some wells costing as little as US$ 100,000. A prospect

4958-549: The rules applicable to public procurement in the European Union , public bodies may insist that suppliers intending to provide goods and services through a joint partnership accept joint liability for the execution of the contract. According to a 2003 report of the United Nations Conference on Trade and Development , China was the recipient of US$ 53.5 billion in direct foreign investment, making it

5032-440: The same proportion as the increase in registered capital. The JV contract accompanied by the articles of association for the EJV are the two most fundamental legal documents of the project. The Articles mirror many of the provisions of the JV contract. In case of conflict the JV document has precedence. These documents are prepared at the same time as the feasibility report. There are also the ancillary documents (termed "offsets" in

5106-435: The shareholders agreement as to the number of directors each founder can appoint to the board of directors; whether the board controls or the founders; the taking of decisions by simple majority (50%+1) of those present or a 51% or 75% majority with all directors present (their alternates/ proxy ); the deployment of funds of the firm; extent of debt; the proportion of profit that can be declared as dividends; etc. Also significant

5180-622: The shareholders, including debt, is equal to the number of shares purchased by each partner. Hydrocarbon exploration Hydrocarbon exploration (or oil and gas exploration ) is the search by petroleum geologists and geophysicists for deposits of hydrocarbons , particularly petroleum and natural gas , in the Earth's crust using petroleum geology . Visible surface features such as oil seeps , natural gas seeps , pockmarks (underwater craters caused by escaping gas) provide basic evidence of hydrocarbon generation (be it shallow or deep in

5254-891: The size of the field and lead to project sanction. At this point the relevant government body gives the oil company a production licence which enables the field to be developed. This is also the point at which oil reserves and gas reserves can be formally booked. Oil and gas reserves are defined as volumes that will be commercially recovered in the future. Reserves are separated into three categories: proved, probable, and possible. To be included in any reserves category, all commercial aspects must have been addressed, which includes government consent. Technical issues alone separate proved from unproved categories. All reserve estimates involve some degree of uncertainty. Proved oil and gas reserves are those quantities of oil and gas, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible—from

5328-426: The world's largest recipient of direct foreign investment for the first time, to exceed the US. Also, it approved the establishment of nearly 500,000 foreign-investment enterprises. The US had 45,000 projects by 2004 with an in-place investment of over 48 billion. Until recently, no guidelines existed on how foreign investment was to be handled due to the restrictive nature of China toward foreign investors. Following

5402-537: Was established in 1998, and made its first delivery in 2002. BGC gradually replacing BST with a more modern approach to LNG transportation, including the introduction of the French-built A-Class vessels and opportunities for Bruneian seafarers' development. BGC currently operates four A-Class vessels— Amadi , Amani , Amali , and Arkat —each with capacities between 147,000 m³ and 154,800 m³, consistently delivering LNG to international clients, especially in

5476-488: Was reorganised and registered in Brunei in 1957 following the implementation of the Brunei Companies Enactment on 1 January of that year. On 15 March 1957, it officially took over operations from its sister company, the BMPC. The new name was chosen to reflect the growing scope of oil development, particularly on Brunei’s continental shelf. It was felt that a new company should align with the state under

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