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In Brunei, Covid is threatening to halt Shell's oil and gas production


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Brunei Shell Petroleum has implemented precautions to prevent oil and gas production disruptions in the country after a large number of Covid-19 infections were discovered at offshore platforms in the Champion field, the country's largest source of hydrocarbons.

 

The recent increase in Covid-19 infections is especially worrying because it is the first big epidemic in Brunei since the first active case was reported in March 2020.
Furthermore, “the number of instances recorded from the Champion field cluster is particularly bad for Brunei, given the field accounts for practically all of its crude oil production and, as a result, its crude oil exports,” Fitch Solutions analysts wrote in a research.

 

“It is still too early to determine the impacts of restrictive measures on (upstream) operations,” Brunei's Minister of Finance and Economy Dato Seri Setia Dr Awang Haji Mohd Admin Liew said during a press conference on Tuesday, according to the Borneo Bulletin.
According to Energy Voice, the minister was answering to a reporter's query, and his "response was wobbly and not convincing."

 

Worryingly, Fitch Solutions reported on August 31 that a significant number of new infections have been reported from locations in Brunei that are directly or indirectly linked to oil and gas operations, including the headquarters of major oil companies such as TotalEnergies and Shell.

 

“Lab findings are awaited to see if the recent outbreak is caused by the more contagious Delta version of the coronavirus.
While Shell, the world's largest oil and gas company, has stated that operations at the Champion field are unaffected, further escalation in the domestic situation would leave the IOC with little choice but to reduce operations and implement social distancing rules to prevent the virus from spreading, according to Fitch.

 

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