Sunday, May 19, 2024
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Brunei to maintain oil, gas output at 300kboe/d

Adib Noor

The Department of Energy under the Prime Minister’s Office (PMO), aims to maintain the production of oil and gas at 300 thousand barrels of oil equivalent per day (300kboe/d) in the medium term and will increase to the level of approximately 350kboe/d in the long term.

This was shared by Minister at the Prime Minister’s Office and Minister of Defence II Yang Berhormat Pehin Datu Lailaraja Major General (Rtd) Dato Paduka Seri Haji Awang Halbi bin Haji Mohd Yussof during the 19th Legislative Council (LegCo) session yesterday.

The minister stated that the Department of Energy has a strategic plan that requires the development of resources in the deep ocean and an increase in exploration activities.

It is expected that the ministry has to spend nearly BND 20 billion in the next five years to finance development and operational programmes.

The minister said it will be an increase of approximately 15 per cent compared to the last five years.

The minister also shared that one of the many efforts to maximise the production of oil and gas in the country includes cooperating with OPEC+ countries to stabilise the oil market which will benefit both the producers and consumers in the long run.

“Alhamdulillah, OPEC+’s efforts have been successful in restoring oil prices to a reasonable level and guarantee oil supply in the future.

A stable oil price at a reasonable level also has a more significant impact on the national income.

The country’s net income from the upstream oil and gas sector last year was the highest since 2014,” said the minister.

It was also shared that the Department of Energy under the PMO will cooperate with the Ministry of Finance and Economy and the Brunei Economic Development Board (BEDB) in supporting the growth of the downstream sector by maximising the value chain of the downstream sector by developing projects with downstream derivative elements that use petrochemical products as ‘feedstock’.

The minister shared that the second phase requires an investment of approximately USD9 billion and is expected to start operating in 2027 or 2028.