Brunei Darussalam 

Country Outlook
GASEX 2010 Taipei

Zainal Abidin Ali
President
Brunei Energy Association
Brunei Facts & Figures

ƒ Land area ~5,800 sq km

ƒ Rainforest Covers ~ 70%

ƒ Population ~400,000

ƒ Capital Bandar Seri Begawan

ƒ Climate Tropical

ƒ Languages Malay, English, Chinese

ƒ Main export Japan, South Korea,

partners Australia

ƒ Oil & LNG >90% of Exports

 Economic Snapshot of Brunei

• GDP/capita among the highest in world.
• Over 50% of GDP from oil and gas.
• Brunei is the fourth‐largest exporter of 
LNG in the Asia‐Pacific region behind 
Indonesia, Malaysia, and Australia. 
• Overseas investment supplements 
income from domestic production.
• Labour force of  ~200,000  (agriculture 
~5%, industry ~60%, services ~35%).
• Low unemployment rate ~2%.
• Main industries petroleum, petroleum 
refining, liquefied natural gas, 
construction.
• Diversifying the economy.
 Exports by Destination

Oil Exports LNG Exports

Singapore Japan
2% 2% Others Spot Sales
Thailand 2% Korea 5%
Korea
4% 10%
22%

China
7%

New Zealand
11%

Australia
19%
Indonesia
15% Japan
85%
India
16%
 Brunei Darussalam Acreage

CA1

CA2
 Petroleum Brunei
• Brunei National Petroleum Company Sendirian
Berhad (“PetroleumBRUNEI”) created in 2002. 
• Incorporated on 14 January 2002 as a ‘Private 
Limited Company’, wholly Government‐owned.
• Tasked to look after the nation’s commercial 
interests in the oil and gas industry.
• Holds the rights to five designated petroleum 
exploration blocks.
• Entered into a joint venture agreement with 
Mitsubishi Gas Chemical Company and ITOCHU 
Corporation on 21 November 2005 to develop a 
world‐class methanol plant in Brunei.
• Has set up several wholly‐owned subsidiaries in 
order to better manage its other investments in 
the oil and gas value chain, both locally and 
internationally.
 Brunei Shell Petroleum

ƒ 80 years partnership between Brunei Government & Shell
ƒ ~40 years reliable gas supplier to BLNG
ƒ Delivering >90% of Brunei exports
ƒ Technological excellence
ƒ Staff ~ 3500 people 7
 Brunei LNG
• BLNG facility first of its type in 
Asia Pacific and is now in its 36th 
year of production.
• Produced over 5000 ‘B’ class 
cargoes since 1973.
• BLNG long‐term supplier to Japan 
(91%) and Korea (9%) with 
exceptional reputation for 
delivery and reliability.
• BSP supplies 87% of gas to BLNG.
• Ongoing asset restoration 
programme to position the plant 
for a further 20 years of supply 
from 2013.
 Total E&P Borneo (Block B Joint Venture)

• Venture between Total 37.5%, Shell 
Deepwater Borneo 35%, local partner 
27.5%, operated by Total.
• Active in Brunei in the 1980s, 
discovered  oil and gas in three of the 
four wells drilled since 1987.
• Producing 13% of total BLNG volumes.
 Hydrocarbon Value Chain in Brunei

BBJV
12% 7 B Class Tankers
(Total/SDB)
GAS

88% 1A Class = 1.66B

Domestic
gas
3rd Parties
OIL

(incl Shell)
Oil

Refined Products
Oil and Gas Production (primarily BSP)
Infrastructure in Place to Support Oil and Gas Industry

Champion hub Fleet of modern helicopters

Tender Assist drilling from Bugan T201 land rig drilling

Marine Construction Yard Made in Brunei

SCOT terminal Refinery
Top Safety Performers in Shell Upstream

13
Strong Environmental Focus
ƒ BSP Assets are ISO 140001
certified

ƒ Shell CEO Environment

Award

ƒ Marine and coral surveys

ƒ Heart of Borneo

14
 Technological Excellence
Snake Wells
Conventional
ƒ First drilled in Brunei
ƒ Complex horizontal paths
Snake
ƒ Reduces cost / improves recovery

Smart Fields
ƒ BSP is forerunner within Shell -
58% of Smart Wells of the Shell
Group.
ƒ Real-time monitoring
ƒ Remote operations
ƒ Improves production & recovery

Production Optimisation Collaboration Centre (POCC)

ƒ Integrated way of working using advanced
technology
ƒ Better identification, tracking and execution of
opportunities
ƒ Significant oil production monitored in real time
Secondary Recovery
 Tertiary Recovery

Logistics & HSE

Piloting &
Chemical Supply Chemical
Simulation
& Manufacture Disposal/Re-Injection
Injection Modelling
Emulsion
QA/QC
Chemical Breaking
Formulation
Conventional Chemical
Metering

Precipitation

Vertical Injection
Conformance Scale
Inhibition
Reservoir
Surveillance
Chemical
Adsorption/
Retention

Injectivity
 Oil and Gas and Related Industry in Brunei
• Sungai Liang Industrial Park 
– Major development in the western of Brunei.
– 271 hectare site developed to be a world class petrochemical hub. 
– First major investment is the USD450 million Brunei Methanol plant.

• Brunei Methanol Company
– Joint venture between Petroleum Brunei and two leading Japanese 
companies, Mitsubishi Chemical Holdings and Itochu Corporation. 
– Methanol agreement signed in 2007.
– Plant will give output of 2,500t of methanol per day (850,000t annually).
– Officially launched by His Majesty Sultan Hassanal Bolkiah on 25 May 2010.
– Officially producing in July 2010.
 Brunei Darussalam ‐ Summary

• Politically and 
economically stable.
• Dependable supplier of 
oil and gas for the region.
• At the forefront of 
technology.
• Growth potential in 
petroleum sector and 
through diversification.