The Scoop quoted Energy Minister Mat Suny Mohd Hussein as saying that Brunei plans to expand production in the upstream and downstream oil and gas sectors after discovering 42 million barrels of oil equivalent at an undisclosed location last year. He announced in a speech on March 2 that drilling would start on several exploration wells this year, adding that several blocks would be tendered to attract new operators to Brunei, adding that the government was targeting daily . The Department of Energy is now planning a $240.8 million budget…
Brunei plans to expand production in the upstream and downstream oil and gas sectors after discovering 42 million barrels of oil equivalent at an undisclosed location last year, exclusive news Quoting Energy Minister Matt Suni Mohd Hussein.
He announced in a speech on March 2 that drilling would start on several exploration wells this year, adding that several blocks would be tendered to attract new operators to Brunei, adding that the government was targeting daily .
The Department of Energy now plans to provide a budget of $240.8 million for the 2022/23 fiscal year, a 20 percent increase from the previous year. The budget includes $43.9 million for development projects and $162.6 million for recurring expenditures.
Brunei’s oil and gas sector hit hard by pandemic
The expansion of Brunei’s oil and gas industry comes after the industry was hit hard by the Covid-19 pandemic, with the country’s crude oil production hitting a record low in the third quarter of 2021, leading to a full-year recession.
despite efforts diversification Brunei’s economy of late is still heavily reliant on oil and gas to spur economic growth, as economists strongly recommend.
However, as the global economy recovers from the pandemic, WTI and Brent both surged to multi-year highs above $110 a barrel as of March 4, and the sector’s performance this year is expected to rise Pretty good. Russia invaded Ukraine.
Facilitate downstream production
The minister said Brunei also hopes to increase the production of polyethylene products in downstream industries to 14.6 million tonnes this year. Driven by the start of operations in 2019 at the China-built Hengyi petrochemical plant, the industry will produce 14.35 million tonnes in 2021, with exports worth an estimated $10.7 billion.
The minister added that the government will prioritize the development of downstream projects in the near future, including the export of urea products, aiming to position Brunei as a leading downstream hub in the Asia-Pacific market.
The energy sector also plans to increase the local workforce to 22,900 this year from 19,050 in 2021, the minister said.
