DIRECTIVE 2:

LOCAL BUSINESS DEVELOPMENT FRAMEWORK FOR THE  OIL &  GAS INDUSTRY

1. As  part of the efforts  of the  Government  of  His Majesty the  Sultan  and Yang  DiPertuan of Brunei Darussalam to facilitate the sustainable development of capacities , capabilities , competencies and competitiveness of local contractors I suppliers in supporting the oil and gas industry within Brunei Darussalam and provide a sound foundation for pursuit of opportunities outside Brunei Darussalam, oil & gas, midstream and downstream operators , their contractors , sub-contractors and suppliers operating within the oil and gas industry in Brunei Darussalam shall hereby adopt and undertake the following:

i. The  prioritization  of the use of local goods and  services.

ii. The  formulation  of  a  Local  Business  Development  (LBD) Management System which includes, but not limited to, the  following: 

• Objective
  • Long term strategies
  • Annual  plan of action
    • Key  performance  indicators  (KPI)  &  Targets
    • Local Training  &  Development Program

iii. The formulation of a Local Content Opportunity  Framing  report  for  major projects  I  contracts  I  agreements.   This   document   shall   identify   opportunities to  increase  local  content  and  local  employment  opportunities.

iv. The carrying out of certain activities  in Brunei Darussalam as set and directed   by the Energy Department, Prime Minister's Office  (EDPMO)  from  time  to  time.

v. The prioritization of the  use of local financial  institutions  and local investors  in  the funding  of projects and purchase of  assets.

vi. To produce an LBD Performance Report which includes the number of local employment  and the amount of local  content.

vii. To   provide   a   conducive   environment   for   the   employment   of   locals by implementing measures as  set  and  issued  by the  EDPMO  from  time  to time such  as,  but  not  exclusive  to,  minimum  wage,  career  development plan and employment  security .

viii. To provide a report to the EDPMO on any difficulties or failures to fulfill the LBD requirements set out in this LBD Framework.

ix. Oil and gas, midstream and downstream operators working in the oil and gas industry in Brunei Darussalam  shall adopt  the  LBD Allocation of Contract  (as described in the diagram below and in the attached Appendix 1-111) for their allocation of contracting activities for goods and service

LBD Allocation  of Contract