Brunei’s economy has been dominated by the oil and gas upstream and downstream industries for the past 90 years. From the first well discovery in Ayer Berkunchi in 1899 to the establishment of Petroleum Authority of Brunei Darussalam in 2019 – Brunei Darussalam’s oil and gas industry has long fueled the growth and development of the country.
The history of the oil industry in Brunei began in 1899 when the first exploration well was drilled near the capital, Brunei Town. It was then followed by the discovery of the Seria field in the Belait District in 1929 and a series of commercial discoveries that culminated in Brunei’s first oil export in 1932. Brunei Shell Petroleum (BSP) is the largest oil producer in Brunei and contributes around 90 per cent to Brunei’s oil and gas revenues.
Over the last decade, Brunei Darussalam has made substantial investments in the expansion of its downstream industries to diversify its product portfolio in the oil and gas value-chain. This trend is set to continue in the future, paving the way for growing demand for new skills and technology.
Brunei has set out a long-term vision for the country and eight strategic objectives have been set by the Department of Energy at the Prime Minister’s Office under their Strategic Plan 2020 – 2025 focusing on the growth and development of the country’s energy sector.
Brunei Darussalam continues to maximise the potential of its mature oil and gas fields, and undertake further exploration and development activities, as well as ensuring locals are highly educated and technically skilled to meet the industry needs. To sustain the country’s long term production, collaborative efforts between the Government and oil and gas operators are key towards materializing potential activities.
The oil and gas industry is the main contributor to the Country’s growth with 49.6% share of the country’s GDP in 2021.
Petroleum Authority of Brunei Darussalam is the regulatory body for the oil and gas industry in Brunei. Its long-term vision for the industry revolves around establishing a progressive and resilient industry that is perceptive to the ever-changing market, capable of enhancing the value created to secure the future of the country.
To attain this vision, the key strategic objectives set by the Department of Energy at the Prime Minister’s Office to propel forward are:
Strategic Objective 1
Diversification of Energy Sector To Increase Resilience From Global Oil Market Uncertainty
Strategic Objective 2
Effective and Sustainable Hydrocarbon Resource Management.
Strategic Objective 7
Robust and Conducive Regulatory Framework and Safety Standards for the Oil, Gas, Power and Other Energy Sectors.
1899
- First exploration well, Ayer Berkunchi, drilled
1912 – 1914
- Belait wells drilled (BL-1, BL-2, BL-3, BL-4)
- BL-2 the first discovery well (non-commercial)
1921
- Electricity supply established to first customer
1929
- First commercial oil discovery, Seria field (Padang Berawa)
1932
- Export of oil to neigbouring states
1953
- First diesel-powered generator start operation
1954
- First marine 2D Seismic Acquisition
1955
- Seria gas plant commissioned
1956
- First offshore Exploration well, Ampa-1
1957
- Peak production of onshore fields
1959
- Gadong diesel engine power station commissioned
- Shell Marketing Company of Borneo Limited established (the forerunner of Brunei Shell Marketing Company Sdn Bhd)
1963
- First onshore and offshore petroleum agreements signed
- First offshore field discovery, South West Ampa
1966
- Temburong diesel engine power station commissioned
1967
- Brunei LNG Sdn Bhd established
1969
- Second offshore field discovery, Fairley
1970
- Champion field discovery
1972
- First LNG Cargo to Japan
- Seria Crude Oil terminal established
1975
- Magpie field discovery
1976
- First gas-fired power station installed in Gadong
1979
- Onshore field discovery, Rasau
1982
- Petroleum Unit of the Prime Minister’s Office established
1983
- The Brunei Shell Refinery established
1986
- Brunei Shell Tankers Sdn Bhd established
1987
- Lumut Co-Generation Power Station commissioned
1988
- Gannet Field discovery
1989
- Maharaja Lela Field discovery
1991
- Seria oil field Billionth barrel production
1992
- IronDuke Field discovery
- Merpati Field discovery
1994
- LNG export to Republic of Korea begins
1998
- Brunei Gas Carriers Sdn Bhd established
1999
- First gas supply from the Block B Joint Venture (BBJV)
2002
- Brunei National Petroleum Company (PetroleumBRUNEI) established
2003
- First cargo of Brunei’s crude oil shipped to India
2004
- First combined cycle power station constructed
2005
- Installation of Brunei’s first SMART platform in Champion West
- 500th LNG Cargo delivery to Japan
2006
- Brunei Methanol Company established
2007
- Bubut Field discovery
2008
- 200 million of tonnes of LNG delivered
2010
- First Solar plant, Tenaga Suria Brunei commissioned
2012
- Directives on Local Business Development (LBD) for Oil & Gas Industry issued
- New electricity tariff introduced
2014
- Energy White Paper published
- Hengyi Industries Joint Venture Agreement Signed
2017
- Layang-Layang onshore discovery
2018
- Safety, Health and Environment National (SHENA) established
2019
- BSP 90th Anniversary
- Successful trial of first international supply of Hydrogen
- Petroleum Authority of Brunei Darussalam established
2020
- Petroleum Authority of Brunei Darussalam First Anniversary
2021
- BSP Solar Park Launched
- BSP Seria Energy Lab Launched
- Block L Production Sharing Agreement (PSA) Signed
2022
- BFI started commercial production of urea
- First Urea export made by Brunei Fertiliser Industries (BFI)
- Official opening of Buang Sakar Riverine Fuel Station
- Notice to Industry (NTI) on Gas Cap Development Guideline issued to all upstream sectors
- First production for the Egret East Project
- Notice to Industry (NTI) on Downstream Facilities Management Guideline issued to all downstream operators
- Official opening of Batang Duri Retail Station
- Gas Production Agreement (GPA) signed between Block B Joint Venture (BBJV) and PETRONAS
- Notice to Industry (NTI) on Exploration and Production (EP) Data Submission Guideline issued to all upstream operators
90 years of discovery of oil