This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 7/12/2019

 

Overview

Brunei’s economy has been dominated by the oil and gas upstream and downstream industries for the past 80 years. These industries will continue to provide important commercial opportunities for U.S. firms. Brunei’s oil and gas fields produce approximately 127,000 barrels of oil per day (bbl/day) and 243,000 barrels of oil equivalent of natural gas per day. Brunei hopes to increase production in the coming years. New oil extraction technology and the current market price of oil have made extracting oil from mature fields economically viable. As a result, companies with experience in extracting oil from mature fields may find new opportunities in Brunei. Other discoveries in the region have generated optimism that there may be additional on-shore and off-shore reserves which may assist Brunei’s interest in increasing production.

Brunei has set out a long-term vision for the country and the energy sector. With ongoing exploration projects both onshore and offshore, the planned target is to grow production from 400,000 barrels of oil equivalent per day (BOEPD) in 2010 to about 430,000 BOEPD in the next five years. Under the Brunei Vision (Wawasan) 2035, the industry is set to increase sales revenue to US $36.1 billion per year and aims to increase production to 800,000 bbl/day and to more than 650,000 BOEPD by 2035.

The Energy Department at the Prime Minister’s Office published an Energy White Paper (2013) that established a framework for action to help realize the National Vision. The White Paper presented three strategic goals to drive growth in the energy sector:

Strengthen and Grow Oil and Gas Upstream and Downstream Activities

  • Ensure Safe, Secure, Reliable and Efficient Supply and Use of Energy

  • Maximize Economic Spin-off from Energy Industry - Boost Local Content and Secure High Participation of Local Workforce.


Table 6: Brunei Oil Production and Trade

Year

2014

2015

2016

2017

Total Local Production
(volume)
Oil: Average Oil production (Thousand Barrels / Day)

Gas: Average Natural Gas Production (Thousand Barrels of Oil Equivalent / Day)



126.45




231.71



126.78




243.03



121




238



113.2




244.3

Total Exports (US$ Millions)

9,209

6,002.2

 4,424.8

5,116.3

Total Imports (US$ Millions)

342.6

199.9

232.9

271.4

Imports from the U.S.

N/A

N/A

N/A

N/A

Total Market Size

N/A

N/A

N/A

N/A

Source: Department of Economic Planning and Development, Ministry of Finance and Economy
 

Leading Sub-Sectors

  • Exploration,

  • Geophysical surveying and mapping services,

  • Drilling operating,

  • Operating oil and gas field properties,

  • Site preparation


Opportunities
There are a number of upstream opportunities for U.S. companies. U.S. firms are well positioned to provide oil and gas equipment and services through local representatives to Brunei Shell Petroleum (BSP), the largest private company in Brunei. In accordance with Brunei’s Local Business Development framework, BSP gives preference to indigenous companies in their contracting activities. Aside from highly specialized equipment and spare parts sales from the original equipment manufacturers, local and international firms compete for contracts. Equipment or services from abroad must be supplied through a local agent or distributor or in partnership or joint venture with local Brunei companies.

Beyond BSP, Brunei Liquefied Natural Gas (BLNG) is also a major player in the petrochemical industry that may seek equipment and services from U.S. companies. BSP and BLNG practice stringent quality control and suppliers must pass a series of quality tests before they can be registered. Most BSP suppliers are registered representatives or distributors of products and services from various foreign countries. U.S. companies may enter the Brunei market through a joint venture, agency agreement or distributor relationship with local Brunei companies. Many established companies in the oil and gas industry are members of the Brunei Energy Association or the Institute of Engineering and Technology.

On the downstream side, Brunei National Petroleum invested in building Brunei’s first Methanol Plant, with two Japanese companies in 2010. Currently there are implementation plans for a Fertilizer plant and a demo-Hydrogen plant. BSP and the Brunei government are very keen support downstream projects with hope that they will become springboards for further economic diversification in the country.

Web Resources

Brunei Industry Contacts
Brunei Shell Petroleum Co Sdn Bhd 
Brunei LNG Sdn Bhd
Brunei National Petroleum Company Sdn Bhd
Brunei Energy Department White Paper Report

Brunei Government Contacts
Ministry of Energy & Industry

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.