Overview
Brunei’s economy has been dominated by the oil and gas upstream and downstream industries for more than90 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 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 and new ventures into deep waters economically viable. As a result, companies with this expertise may find new opportunities in Brunei. Other regional discoveries have generated optimism that there may be additional on-shore and off-shore reserves, which may further Brunei’s interest in increasing production.
One of the roles of the Department of Energy is to strengthen sustainable energy efforts through energy efficiency initiatives. The Brunei Darussalam National Council on Climate Change launched the National Climate Change Policy in 2020, with the objective to reduce industrial emissions through zero routine flaring and increase renewable energy usage.
Year | 2019 | 2020 | 2021 | 2022 |
|---|---|---|---|---|
Total Local Production (volume) Oil: Average Oil production (Thousand Barrels / Day)
Gas: Average Natural Gas Production (Thousand Barrels of Oil Equivalent / Day)
|
121
240 |
110
231 |
106.6
213.5 |
92
196 |
Total Exports (US$ Millions) | 6,600.84 | 5,372.5 | 7,975.4 | 11,015.6 |
Total Imports (US$ Millions) | 1,711.4 | 1,936.2 | 4,214.4 | 6,002.4 |
Source: Department of Economic Planning and Statistics, Ministry of Finance and Economy
Leading Sub-Sectors
- Exploration,
- Geophysical surveying and mapping services,
- Drilling operating,
- Operating oil and gas field properties,
- De-commissioning
Opportunities
There are several 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), Brunei’s largest oil and gas company. 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 usually purchased directly from equipment manufacturers, local and international firms compete for oil and gas contracts. Equipment or services from abroad must be supplied through a local agent or distributor or in a 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.
Brunei Government Contacts