Brunei's Energy Industry

Brunei: Push for New Discoveries

Brunei’s oil and gas industry has come a long way since the first well was discovered in 1899. The production of hydrocarbons now accounts for around half of the nation’s GDP. The energy industry is overseen by the Petroleum Authority of Brunei Darusallam, which hands out PSCs and ensures participants adhere to policies set down by the state.

Brunei Shell Petroleum is the largest oil producer in the country, accounting for around 90% of oil and gas revenues. A 50:50 joint venture between super-major Shell and the government of Brunei, the integrated energy company BSP has been active in the country since 1929 and operates the 10,000-bopd Brunei Refinery.

New extracting technologies have made the country’s mature fields and deepwater ventures economically viable, and the state is focused on attracting new players into its oil and gas ecosystem. The country’s downstream sector has become equally vibrant with facilities producing LNG, methanol and other petrochemicals. The government has focused on building its petrochemicals capacity as it aims to up production and maximise on the economic potential of its remaining reserves.