OREANDA-NEWS. July 07, 2011. China's Sinopec Engineering Incorporation and Zhejiang Hengyi Group Co Ltd will develop an oil refinery and aromatics cracker plant in Brunei, the Brunei Economic Development Board said.

The facilities would involve an initial investment of USD 2.5 billion and have a production capacity of about 135,000 barrels a day, the board said according to a report in the Borneo Bulletin.

The first phase of the project would comprise production of petroleum products such as gasoline, diesel, jet A-fuel, paraxylene and benzene, it said.

A further USD 3.5 billion would be invested during the second phase to expand the facilities to include the production of olefins.

A portion of the crude oil and condensate would be used as local feedstock, and a part of the gasoline, diesel and jet A-fuel would be marketed in Brunei to meet growing demand.

No date was given for the project's commencement although a detailed engineering study would be conducted over a 12-month period following the engineering design, the economic board said.