Brunei’s Huge Oil And Gas Potential To Be Further Probed

Brunei is to look further offshore for oil and gas, it was revealed yesterday.

International oil and gas industrialists were given further insights on the future prospects of the nation’s hydrocarbon industry when they were briefed by the Brunei Liquefied Natural Gas (BLNG) Chief Executive Officer, Dato Paduka Haji Hamdillah.

He spoke about the Brunei Liquefied Natural Gas Master Plan, which includes interest in exploration of new areas including the deep waters of Brunei’s Exclusive Economic Zone (EEZ) in the South China Sea.

Brunei launched its first deep sea petroleum exploration areas and opened the 10,000 square kilometre area for competitive bidding for the first time last Monday.

Two new offshore areas, Block J and K, and one onshore site, Block L, are open to petroleum companies for bidding to be submitted at the end of the year.

Potential partners have to assess data required from the Petroleum Unit to identify petroleum potential, which are expected to be high. Bids then will be evaluated and the successful bidder will be offered the block for exploration for eight years.

All physical terms, including profit sharing between the operators and the authority, are detailed in the new petroleum agreement, ‘Production Sharing Contract’ (PSC).

“A 2,500 square kilometre, two dimensional marine seismic survey has been conducted over Brunei’s entire Exclusive Economic Zone to identify new petroleum opportunities.

“From these new studies, it has been revealed that the deepwater areas may have huge possibilities for exploration and development,” said Brunei Oil and Gas Authority Chairman (BOAGA) Pehin Dato Haji Abdul RahmanAbdul Rahman Taib.

A dozen senior representatives from Brunei Shell Petroleum, the New Zealand-based Fletcher Challenge Petroleum Ltd., and the French-based Elf Petroleum, are having a closer look at the new oil deal Brunei is offering.

The government is developing existing hydrocarbon resources and identifying new reserves in a parallel strategy.

This is the first time Brunei ‘s oil venture is being offered to oil and gas companies under a Production Sharing Contract, said Taib, who is also the Minister of Industry and Primary Resources.

Brunei is inviting international players to explore, discover and develop Brunei’s untapped petroleum resources it believes are still in abundance, he said.

Brunei, the third-largest oil producer in Southeast Asia, produces an average 182,000 barrels of oil a day. It is also the world’s fourth largest producer of liquefied natural gas.

Brunei Shell has six offshore oilfield concessions at Champion, Magpie, Iron Duke, South West Ampa, Fairley and Fairley-Baram, and two onshore fields in Seria and Rasau in Kuala Belait.

Jasra Petroleum holds the concession at Maharaja Lela/Jamalulalam Field, 50 kms. offshore Brunei in over 60m water depth.