A vacant site outside Bandar Seri Begawan will soon come alive β not with a heartbeat, but with the hum of pumps and the sounds of heavy machinery. There, the first locally-owned Mud Processing Plant (MPP) will emerge: a turning point in Brunei's oil and gas industry.
VidDaCom Sdn Bhd, a local oil and gas services company, will make history as the first fully locally-owned operator of a mud processing plant. The plant, built in an industrial area near the Brunei International Airport, has a 23,000 barrel mud tank capacity β enough to support multiple oil wells simultaneously.
"This is not just a plant. It is proof that locals can master high-tech segments β not just as subcontractors, but as full owners and operators," said the Managing Director of VidDaCom, Awang Haji Mohammad bin Ali, when interviewed at his office last week. He emphasized that this project opens up opportunities for local companies to climb higher in the supply chain.
Strategic cooperation with global giants, not dependence on them
VidDaCom's success is built on strategic cooperation β not dependency. The company collaborates with SLB (Schlumberger), a global oil services giant, and BSP (Brunei Shell Petroleum) as technical partners and main customers. SLB provides the latest drilling fluid technology, while BSP becomes the main buyer of the produced mud.
"We are confident that VidDaCom can become a competitive local supplier. Our technical support ensures that this plant operates according to international safety and quality standards," said a SLB spokesperson from its headquarters in Houston, via a video call.
Drilling mud β or drilling fluid β is not an ordinary substance. It cools the drill bit, carries rock cuttings to the surface, and stabilizes the wellbore during drilling. Delays or failures in the supply of quality mud can halt operations and cause millions of ringgit in losses.
100 workers during construction, 30 permanent workers β all local
The construction of the plant is expected to absorb 100 local workers during the construction phase, and 30 permanent workers when operations begin. VidDaCom is fully committed to local labor, with technical training programs in partnership with SLB. "We don't want Brunei's youth to just run machines. We want them to understand the chemistry behind the mud, so they can design their own formulations," said Haji Mohammad.
Local economist Dr. Zainal bin Haji Sulaiman from Universiti Brunei Darussalam described this move as an important catalyst for the local oil and gas services ecosystem. "For a long time, local companies were limited to supplying small equipment or low-level support services. Now, they are entering strategic segments β where added value, efficiency, and technical control truly matter. This reduces reliance on foreign contractors and strengthens the country's economic resilience."
Not the end of the journey β but a bold beginning
However, the path is not straightforward. The oil and gas industry constantly faces price uncertainty, demand volatility, and operational cost pressures. VidDaCom is aware of these risks. "We don't put all our eggs in one basket. Besides BSP, we have already started discussions with other oil companies active in Brunei waters β including independent operators," explained Haji Mohammad, showing the company's marketing plan.
The project has received full support from the Ministry of Energy and Industry through the local vendor empowerment initiative. Minister of Energy, Dato Seri Setia Haji Matsatejo bin Haji Salleh, previously emphasized that the development of local vendors is not just about contracts β it is about economic sovereignty and the resilience of strategic sectors.
Construction is scheduled to begin in the coming weeks, and the plant is expected to be completed within 18 months. When fully operational, VidDaCom will not only supply drilling mud β it will be a clear proof: local entrepreneurs are not only able to be present, but also able to lead.
"We are no longer spectators. We are players. And we are playing on our own stage β with our own rules, skills, and confidence," said Haji Mohammad, his smile calm but determined.