Your Excellencies,

Distinguished guests,

Ladies & gentlemen

Good morning. I am delighted to be here for the opening ceremony of Offshore Southeast Asia 2002, RLPAsia 2002 and WeldTech Asia 2002. This series of exhibitions and conferences has been a biennial event since 1976 and continues to serves as an excellent platform for the promotion of the oil, gas and petrochemical industries in the region. I understand that it is recognized as one of the premier events for the industry in Asia and this year, attracted more than 800 participating companies from 43 countries.

The oil and gas industry worldwide is growing at a tremendous pace. Worldwide demand is expected to increase by 22 per cent in the next ten years, with Asia spearheading this increase. Spurred by the surge of new oil and gas fields in West Africa and parts of Asia, the industry is undergoing much innovation in deepwater technologies. In the downstream areas, capital expenditure on refining and petrochemical plants is expected to see double-digit growth between now and 2006. These developments represent significant opportunities for businesses which are based in Singapore.

Singapore is well-positioned to capitalize on these opportunities. Our upstream oil and gas industry includes a good base of global equipment manufacturers with an output of close to S$1 billion. We have also gained -leading position in the complex conversion and building of exploration and production platforms. In the downstream area, the sector has also developed rapidly since the 1960s and in 2001 had an output of S$17.5 billion in refining and S$6.7 billion for petrochemicals. These downstream industries operate at close to full capacity and will ramp up with new plants as well as expansion of existing plants. These reflect the significant base of oil and gas related activities here.

Singapore is thus in a strategic and key leadership position in the global oil and gas business. We will continue to respond to meet the future challenges that the oil and gas industry will face, including intensifying global competition, and the need for new technologies and solutions. I see an urgent need for the oil and gas industry in Singapore to build new capabilities, innovate and pioneer new business models, as well as develop new production processes and products. More innovation and R&D is also needed. I believe that the following are some of the key strategies that Singapore and the industry can jointly consider.

With businesses becoming more global and more complex, the ability to enjoy a comprehensive range of capabilities and services from a one-stop business location is an important competitive edge. Today, Singapore has a spectrum of different capabilities and services to support the oil and gas industry in the region. The government will continue to encourage more oil and gas industry players to leverage on the critical mass already here. In addition, Singapore’s pro-business environment will be a good base for companies to site their headquarters overseeing a full range of corporate and business functions, including management, finance, manufacturing, R&D, H. R development and regional technical training.

To support this sector, Singapore has invested in infrastructure development. For example, Jurong Island (Singapore’s chemical island) is undergoing Phase 4 reclamation works. This development will provide an additional 1500 hectares of land for new projects in the oil and gas industry.

To boost our value proposition as a one-stop business location for oil and gas activities, manpower capability is key. Like other industries, the oil and gas industry must deepen its core strengths and, at the same time, develop new capabilities to embrace new market opportunities. EDB has in place several schemes to support companies who are interested in upgrading their manpower capabilities to acquire new competencies. In the downstream oil and gas industry, initiatives such as the Chemical Process Technology Centre (CPTC) has been launched. The CPTC will train some 800 students and 8000 workers every year for the chemical and pharmaceutical sector.. I strongly encourage key industry players, institutes of higher learning and research institutes to collaborate on the development of manpower capabilities and put in place relevant manpower training programmes. I understand that EDB will be holding a roundtable discussion with industry, academia and relevant government agencies on this initiative soon.

Innovation & R&D in Offshore Engineering

With the strong demand for solutions and applications catering to deepwater offshore oil and gas activities, innovation and R&D in materials and controls research for deepwater are important. There are today, platforms looking into such activities, for example the Maritime Port Authority R&D Advisory Panel for Offshore and Marine Technology, as well as the Institute of Chemical Sciences (ICS) for downstream chemical and process R&D.

Industry players can also initiate such efforts. Programmes such as EDB’s Innovation Development Scheme (IDS) and Research Incentive Scheme for Companies (RISC) are in place to support companies pursue innovation and R&D.. I would urge companies to pioneer innovation and R&D out of Singapore for new products, new processes and new solutions.

In conclusion, I would like to congratulate the organizers as well as all participants of OSEA 2002, RLPAsia 2002 and WeldTech Asia 2002 for the successful launch of this year’s exhibition and conference in Singapore. I am confident that this exhibition and conference will provide a good platform for the oil and gas industry to come together, build networks, identify opportunities and develop many good deals. I would like to wish all exhibitors and visitors here an enriching time in Singapore. It is now my pleasure to declare OSEA 2002, RLPAsia 2002 and WeldTech Asia 2002 open. Thank you.