Energy
From The Report: Brunei Darussalam 2013
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Dominated by hydrocarbons, the energy sector in Brunei Darussalam has seen production begin to falter in the past five years and, therefore, is now awaiting the results of exploration and development programmes being carried out by international oil companies. There remains a high degree of optimism that these efforts will bear fruit, with the government setting ambitious production targets over the next two decades. In the interim, the government faces the threat of revenue erosion from its biggest source of income. However, despite this pause, there continues to be significant activity in the energy industry. In many respects, the sector remains outward facing; the country leans heavily on hydrocarbons for export revenue. As such, the government is pushing hard to maximise output, a strategy that involves bolstering production from existing fields and ramping up the search for new ones.

This chapter contains interviews with Pehin Dato Yasmin Umar, Minister of Energy; Dato Matsatejo Sokiaw, Managing Director and CEO, Brunei National Petroleum Company; and Qui Jianlin, Chairman, Zhejiang Hengyi Group, as well as and a dialogue with Yves Grosjean, General Manager, Total E&P Deep and Offshore Borneo; and Ken Marnoch, Managing Director, Brunei Shell Petroleum.

Articles from this Chapter

Overview

Drill deep: As oil extraction evolves, so do diversification plans
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Dominated by hydrocarbons, the energy sector in Brunei Darussalam has seen production begin to falter in the past five years and, therefore, is now awaiting the results of exploration and development programmes being carried out by international oil companies. There remains a high degree of optimism that these efforts will bear fruit, with the government setting ambitious production targets over the next two decades. In the interim, the government faces the threat of revenue erosion from its…

Interview

OBG talks to Pehin Dato Yasmin Umar, Minister of Energy
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Interview: Pehin Dato Yasmin Umar What is the outlook for liquid natural gas (LNG)? PEHIN DATO YASMIN UMAR: The global LNG market is opening up, with increased investment in LNG infrastructure, abundant gas resources and LNG’s reputation for being a clean source of energy. This is true for countries throughout Asia, including ASEAN member states. The growth in LNG can only mean good things for an LNG exporter like Brunei Darussalam, as this will result in many more opportunities for export. The…

Interview

OBG talks to Yves Grosjean, General Manager, Total E&P Deep and Offshore Borneo, and Ken Marnoch, Managing Director, Brunei Shell Petroleum (BSP)
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Interview: Yves Grosjean,Ken Marnoch What potential is there for Brunei Darussalam to increase oil and gas production in the medium term? YVES GROSJEAN: The potential for increasing production in the medium term for us is mainly represented by the Maharaja Lela South Project. It is about developing several new reservoir compartments discovered by Total, extending in depth to over 5500 metres measured from the sea surface. It is very high pressure and at this depth the limits of technology…

Interview

OBG talks to Dato Matsatejo Sokiaw, Managing Director and CEO, Brunei National Petroleum Company (PetroleumBRUNEI)
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Interview: Dato Matsatejo Sokiaw Brunei Darussalam is aiming to double oil and gas production by 2030. What opportunities can foreign energy players and local service companies look forward to in the medium term? DATO MATSATEJO SOKIAW: Doubling production will attract significant investment in both exploration and production development. We have started exploration in new commercial areas and this will continue for a few years. It may take at least another five years from exploration success to…

Analysis

Go with the flow: LNG sales remain strong, although the market may be set for a shake-up
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Since the inception of Brunei LNG in 1972, a joint venture between the government (50%), Shell International (25%) and Mitsubishi Corporation (25%), Brunei Darussalam has developed an extensive and integrated liquefied natural gas (LNG) supply chain geared towards serving the export markets of Japan and South Korea. However, with these contracts up for renegotiation in 2012 and 2013 and the LNG market set to undergo a dramatic shift in the next 10 years, the Sultanate may need to reassess its…

Analysis

Keeping it close: Ensuring the sector has a local impact remains a state priority
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With the energy sector playing such a prominent role in the economy, the government is keen to make sure it has an increasingly positive impact locally in terms of both employment and revenue generation. OUTLINING THE PLAN: Under the Brunei Vision 2035, the Energy Department at the Prime Minister’s Office (EDPMO) has laid out a number of ambitions and targets for increasing local participation in the oil and gas sector. By 2035 the government hopes to create 50,000 jobs in the energy sector,…

Analysis

Going green: The state looks to make its industries more environmentally friendly
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Though abroad it might be best known for its substantial hydrocarbons reserves, at home Brunei Darussalam’s authorities are also turning their attention to renewable energy sources and efficiency drives in a bid to “green” the economic growth. Conscious of its regional environmental commitments, the Sultanate is likely to witness substantial investment in renewable energy technologies during the coming years. BIG NUMBERS: Brunei Darussalam may not be a huge consumer of hydrocarbons in…

Analysis

At the peak: Steps are being taken to improve efficiency and reduce the power bill
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In an attempt to improve efficiencies and reduce the power bill currently facing the government, Brunei Darussalam’s utilities sector is seeing several new investments. While the current generation capacity is enough to meet consumption, the government is keen to improve efficiencies and make power generation and distribution in the country more cost-effective. ROOM TO GROW: In 2011 Brunei Darussalam had an installed capacity of 894 MW (this increased to 916 MW in the first quarter of 2012).…

Interview

OBG talks to Qiu Jianlin, Chairman, Zhejiang Hengyi Group
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Interview: Qiu Jianlin Hengyi’s Pulau Muara Besar Petrochemicals Project is the largest overseas venture for a private Chinese firm. Why did you choose Brunei Darussalam? QIU JIANLIN: We conducted a thorough site selection process for our overseas refinery and integrated aromatics project. We visited several potential countries, but in the end we chose Brunei Darussalam based on the following reasons. First, risk management is our top priority when choosing the site for such a big proposal. Politically…

Analysis

Shale of the century?: Debate over the unconventional hydrocarbon’s future continues
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Cheap, plentiful energy has long been a precondition of the industrial age. In recent years, however, conventional reserves of fossil fuels have been steadily dwindling. With renewables not yet sufficiently developed to end our dependence on these resources, the world seemed to face a stark choice: return to more hazardous and polluting sources such as nuclear and coal, or accept dramatically higher energy prices, and the consequent constraint on economic activity. In the past five years though,…