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Oil & Gas Activities & Opportunities
UPSTREAM ACTIVITIES
Concession Areas
The Petroleum Unit acts on behalf of the Government of His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam as a regulatory body prudently monitors and oversees all activities that are carried out by concessionaires holding concession areas in Brunei Darussalam.
Two major concessionaires are currently operating in Brunei Darussalam. They are Brunei Shell Petroleum Company Sdn Bhd (BSP) and Total E&P Deep Offshore Borneo B.V.(Total). Brunei Shell Petroleum Sdn Bhd is a company jointly owned by the Government of His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam and Royal Dutch Shell. Total is the operator for Block B joint venture. Offshore Block B joint venture has its interest shared between the Government of His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam, Total and Shell Deepwater Borneo respectively. Both BSP and Total now operate the 6,319.71 sq.km concession areas.
Production-Sharing Agreement Areas
Block J was awarded to a three-member consortium comprising Total, BHP Billiton and Amerada Hess as its successful bidder. The award was officially announced in 2003. Block K, was awarded to a consortium comprising Shell Deepwater Borneo, Mitsubishi and Conoco-Phillips.
Both onshore Block L and Block M with sizes 2,250 sq.km and 3,010 sq.km respectively were opened for bidding to international oil and gas companies in October 2005. In 2006, Block L was awarded to Loon Energy Inc. and QAF Brunei Sdn Bhd. Block M was awarded to China Oil USA (Macao) Co Ltd (ChinaOil), Valiant International Petroleum Ltd and Jana Corporation Sdn Bhd.
The deepwater and onshore blocks are designated areas of PetroleumBRUNEI, the National Petroleum Company of Brunei Darussalam.
Open Areas
Other open areas that will be made available for future exploration activities include the relinquished areas within the shallow water regions of the Brunei waters and the northern ultra-deepwater areas within the boundaries of the Brunei Exclusive Economic Zone up to and include the 200 nautical miles extent.
Export Destinations
In 2009, 23.5% of Brunei crude oil was exported to Indonesia. This was followed by Australia (17.4%), South Korea (16.4%), India (16.2%), New Zealand (9%), China (7.9%), Thailand (3.4%), Singapore (2.8%), Japan (2.4%), Philippines (0.5%) and Malaysia (0.5%).
DOWNSTREAM ACTIVITIES
Oil Refinery
The Seria Oil Refinery, operated by Brunei Shell Petroleum and situated at the oil town of Seria in the Belait District, has a production capacity of 10,000 bpd each for its Crude Distillation Unit (CDU) and Reformer unit. This refinery produces unleaded motor gasoline, gasoil, Jet A1, and Kerosene.
LNG Plant
Natural gas produced from Brunei oil and gas fields is exported as liquefied natural gas (LNG) to three buyers in Japan namely Tokyo Gas, Tokyo Electric, and Osaka Gas and one buyer from South Korea, Korea Gas Corporation. The LNG is processed at Brunei LNG Sdn. Bhd. Plant at Lumut, Seria. In 2009, LNG exports amounted to 194 ‘B-Class’ cargoes.
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