Brunei Darussalam Energy

A drive is gathering pace in Brunei Darussalam to increase regional cooperation on energy provision as part of a broader bid by Asia’s oil producers to meet rising demand from nearby fast-growing economies.

With solar and biowaste power plants already under development, Brunei Darussalam has demonstrated its willingness to meet the renewable energy goals set by the ASEAN community. A recent agreement with the US could provide an extra boost to these efforts and encourage investors.

While Brunei Darussalam’s Energy Department is pushing for full localisation of human resources in the oil and gas sector, firms say the transient nature of the industry and a lack of experienced locals makes this a challenge.

With a well-stocked energy sector, international buyers are lining up to access Brunei Darussalam’s liquefied natural gas (LNG). It will be up to officials to ensure that a balance is struck between fuelling overseas demand and supplying the local economy, and in particular, the country’s growing petrochemicals industry.

With a radical overhaul of its energy sector planned, Brunei Darussalam is looking to ramp up production at the wellhead while expanding downstream activities through a long-term programme that is intended to quadruple national revenue and boost employment.

Brunei and Malaysia have agreed that joint demarcation and survey activities can begin next year on previously disputed offshore oil and gas blocks. The move draws a clearer picture of the role international companies will play in a development expected to significantly boost the Sultanate’s reserves.