Brunei plans to increase oil and gas output following a recent find

[ASEAN NOW Content Team]

 

According to Brunei's energy minister, Mat Suny bin Mohd Hussein, the country expects to increase oil and gas output following the finding of 42 million barrels of oil equivalent last year. Significantly, the country is relying on new discoveries to counteract a predicted drop in upstream output.

 

According to Brunei's energy minister, Mat Suny bin Mohd Hussein, the country expects to increase oil and gas output following the finding of 42 million barrels of oil equivalent last year. Significantly, the country is relying on new discoveries to counteract a predicted drop in upstream output.

 

The government did not say where the upstream discovery was made.
Although it's more than probable he was talking to Shell's (LSE:RDSA) deepwater discovery in Block CA-1 with its Jagus SubThrust-1X exploration well in Q2 2021.
However, neither the operator nor its partners, Murphy Oil and Petronas, have disclosed any information regarding the discovery.

Brunei's energy minister indicated earlier this month that several additional exploration wells will be drilled offshore this year, and that more blocks will be given to entice new operators to the Southeast Asian nation.

 

Following its success last year, Shell intends to drill another exploratory well in Block CA-1.
Late in January, Murphy Oil announced that the partners were finalising well objective plans and reviewing prospectivity before deciding on a final location.

 

Banking On New Finds To Boost Upstream Production

 

Brunei looks to be relying on new finds to boost dwindling upstream production.
Analysts in the industry, on the other hand, are doubtful.

After Brunei's oil and gas sector was impacted hard by the Covid epidemic, the energy minister told the Legislative Council in early March that the government is aiming for output of 300,000 barrels of oil equivalent per day (boe/d).
Brunei produced about 320,000 barrels of oil equivalent per day in 2020.

 

Brunei's crude production fell to a new low of 97,100 barrels per day in the third quarter of 2021.
Hundreds of COVID-19 cases were discovered at Shell's Champion 7 offshore production facility in August of last year, causing production disruptions in the country's oil and gas sector.

In Q3 2021, Brunei's natural gas production fell to 28.5 million cubic metres per day, down from 30.7 million cubic metres per day in Q3 2020.

 

Brunei's production will drop to around 140,000 boe/d in 2030, according to Rystad Energy forecasts, from over 320,000 boe/d in 2020.
However, the development of Geronggong-Jagus East and the Kelidang cluster, as well as other projects, will boost output to about 350,000 boe/d by 2030, up from 240,000 boe/d in 2025.