Energy
From The Report: Brunei Darussalam 2014
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Plans to complement domestic production by undertaking international exploration support the Sultanate’s target of reaching an output of 650,000 barrels of oil equivalent per day by 2035. Downstream, the government is investing in development of its petrochemicals sectors. The country today is primarily an exporter of liquefied natural gas, which is shipped to Japan, South Korea and Malaysia, and is a significant oil supplier to the Asia-Pacific region. Its oil and gas output is likely to stabilise in the near to mid-term as investment in both exploration and the development and refurbishment of older fields has significantly accelerated. In the longer run, the country’s success will largely depend on the size of its deepwater resources and how well the government can rally the resources for their exploration and development.

This chapter contains interviews with Pehin Dato Yasmin Umar, Minister of Energy; and Ken Marnoch, Managing Director, Brunei Shell Petroleum; along with a roundtable with Hj Awang Hj Ali, Executive Chairman, Belait Shipping; Supna Karwanamurthi, Managing Director, FLUX O.S.; Mohd Shafie Mohd Yusof, Managing Director, Petrokon Utama; and Amir Osman, Managing Director, PTAS Group.

Articles from this Chapter

Overview

Benefitting from an ideal location to supply Asian markets and a new government strategy
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As a small country with a large endowment of oil and gas, Brunei Darussalam has naturally developed a mostly export-oriented energy sector. Through long relationships with top multinationals, the Sultanate has an established record of applying leading technologies in the exploration, development and processing of its natural resources. The country is today primarily an exporter of liquefied natural gas (LNG), which is shipped to Japan, South Korea and Malaysia, and is a significant oil supplier to…

Analysis

With major investments in a new refinery, downstream prospects are multiplying
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The country has long had big ambitions for the downstream segment of its energy sector, and 2014 was the year when they finally began to take shape. The $10bn oil processing and petrochemicals complex planned by China’s Zhejiang Hengyi in Brunei Darussalam passed a crucial milestone in February 2014 when Hengyi and the Bruneian government formed a joint venture, Hengyi Industries. The deal gave Hengyi a 70% stake and the government 30%, for which it paid BN$300m ($235.4m) through the Strategic…

Interview

OBG talks with Pehin Dato Yasmin Umar, Minister of Energy
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Interview:Pehin Dato Yasmin Umar What steps are being taken to create jobs for locals in the oil and gas sector in accordance with the Local Business Development Framework? PEHIN DATO YASMIN UMAR: The Energy Department at the Prime Minister’s Office (EDPMO) has taken several steps to increase local employment in the sector, including encouraging oil and gas operators to make employment targets central to their contracts, allowing for rollover of local employees from previous to newly awarded…

Analysis

Bruneian energy players stand to benefit from cooperation with other regional players
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With an established reputation as an honest broker and investor in long-term strategic opportunities within South-east Asia, Brunei Darussalam has made a name for itself as a regional player. ASEAN itself has emerged as a major centre for activities in the upstream and downstream segments, with the Philippines, Myanmar, Malaysia and Thailand standing out as the most compelling cases. The Philippines Hopes of a path towards energy independence in the Philippines are gathering pace thanks to encouraging…

Interview

OBG talks to Ken Marnoch, Managing Director, Brunei Shell Petroleum
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Interview:Ken Marnoch How are local oil and gas operators assisting with the national plan for economic diversification? KEN MARNOCH: As the energy sector forms the backbone of the Bruneian economy, it must serve as the starting point for diversification. Oil and gas operators can facilitate this in many areas, both within the energy and in other industries. Promoting education and entrepreneurship is crucial, and we have many initiatives to help support the emergence of local talent that…

Overview

OBG talks to Hj Awang Hj Ali, Executive Chairman, Belait Shipping; Supna Karwanamurthi, Managing Director, FLUX O.S.; Mohd Shafie
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Interview:Hj Awang Hj Ali,Supna Karwanamurthi, Mohd Shafie What impacts has the recent local business development (LBD) framework had on domestic companies in the energy sector? SUPNA KARWANAMURTHI: The recent implementation of the LBD framework by the Energy Department at the Prime Minister’s Office (EDPMO) has been a major success in that it has assisted in eliminating monopolies within the oil and gas industry, thus creating a fair and even playing field for all companies in the sector.…

Analysis

Power up: The government is focused on encouraging more efficient use of power supplies
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As an export-oriented energy producer and a high-income country with a humid climate, Brunei Darussalam has one of the world’s highest rates of energy consumption per capita. According to the International Energy Agency (IEA), annual per capita consumption stood at 9.44 tonnes of oil equivalent in 2011, the sixth-highest amount in the world and about five times the global average. However, most of that energy is consumed in the process of producing oil and gas for export, and the Sultanate’s…

Analysis

Improved technologies are providing new ways to produce hydrocarbon resources
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Like all traditional oil and gas producers, Brunei Darussalam is running an uphill race against time. The giant fields that have been the country’s mainstay since the 1970s or earlier are in decline, and the remaining undeveloped resources are increasingly difficult to reach. They are deeper and in smaller, more scattered reservoirs. In order to stay ahead, the Sultanate must ensure that conditions are welcoming enough for investors for them to utilise the latest technologies in their exploration…