Brunei - Country Commercial Guide
Energy

This is a best prospect industry sector for this country.  Includes a market overview and trade data.

Last published date: 2021-09-26

Overview

Brunei’s economy has been dominated by the oil and gas upstream and downstream industries for the past 90 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 and new ventures into to deep waters economically viable. As a result, companies with this expertise 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 further Brunei’s interest in increasing production.

One of the roles of the Ministry of Energy is to grow and diversify Brunei’s downstream oil and gas sector, as well as strengthen sustainable energy efforts through energy efficiency initiatives. The Brunei Darussalam National Council on Climate Change recently released a National Climate Change Policy, with the objective to reduce industrial emissions through zero routine flaring and increase renewable energy usage.

Table 6: Brunei Oil Production and Trade

Year

2016

2017

2018

2019

Total Local Production

(volume)

Oil: Average Oil production (Thousand Barrels / Day)

 

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

 

 

 

121

 

 

 

 

238

 

 

113.2

 

 

 

 

244.3

 

 

112

 

 

 

 

234

 

 

121

 

 

 

 

240

Total Exports (US$ Millions)

 4,424.8

5,116.3

5,900.3

6,600.84

Total Imports (US$ Millions)

232.9

271.4

270.6

1,711.4

Leading Sub-Sectors

  • Downstream petrochemical manufacturing
  • 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), the largest oil and gas 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 that are 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 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.

In the downstream oil and gas sector, the current activities include the Brunei Methanol Company Sdn Bhd (BMC) methanol plant in operation since 2010 and the multi-billion dollar Pulau Muara Besar (PMB) Refinery and Petrochemical Plant operated by Hengyi Industries Sdn Bhd since the end of 2019.

In the next few years, Brunei is expecting for a fertilizer plant with a production capacity of 1,365,000 MT of urea per year is expected to commence operations at the end of 2021, and will also commence the expansion of the Hengyi Petrochemical Plant.

Brunei Government Contacts

Ministry of Energy