Brunei Darussalam  Country Outlook

GASEX 2010 Taipei
Zainal Abidin Ali President Brunei Energy Association

Brunei Facts & Figures

Land area Rainforest Population Capital Climate Languages Main export partners Oil & LNG

~5,800 sq km Covers ~ 70% ~400,000 Bandar Seri Begawan Tropical Malay, English, Chinese Japan, South Korea, Australia >90% of Exports

Economic Snapshot of Brunei
• • • GDP/capita among the highest in world. Over 50% of GDP from oil and gas. Brunei is the fourth‐largest exporter of  LNG in the Asia‐Pacific region behind  Indonesia, Malaysia, and Australia.  Overseas investment supplements  income from domestic production. Labour force of  ~200,000  (agriculture  ~5%, industry ~60%, services ~35%). Low unemployment rate ~2%. Main industries petroleum, petroleum  refining, liquefied natural gas,  construction. Diversifying the economy.

• • • •

Exports by Destination
Oil Exports
Singapore Japan 2% 2% Others Thailand 2% 4% China 7% New Zealand 11%

LNG Exports

Korea 22%

Korea 10%

Spot Sales 5%

Australia 19% Indonesia 15% India 16%
Japan 85%

Brunei Darussalam Acreage

CA1 CA2

Petroleum Brunei
• Brunei National Petroleum Company Sendirian Berhad (“PetroleumBRUNEI”) created in 2002.  • Incorporated on 14 January 2002 as a ‘Private  Limited Company’, wholly Government‐owned. • Tasked to look after the nation’s commercial  interests in the oil and gas industry. • Holds the rights to five designated petroleum  exploration blocks. • Entered into a joint venture agreement with  Mitsubishi Gas Chemical Company and ITOCHU  Corporation on 21 November 2005 to develop a  world‐class methanol plant in Brunei. • Has set up several wholly‐owned subsidiaries in  order to better manage its other investments in  the oil and gas value chain, both locally and  internationally.

Brunei Shell Petroleum

80 years partnership between Brunei Government & Shell ~40 years reliable gas supplier to BLNG Delivering >90% of Brunei exports Technological excellence Staff ~ 3500 people
7

Brunei LNG
• BLNG facility first of its type in  Asia Pacific and is now in its 36th  year of production. • Produced over 5000 ‘B’ class  cargoes since 1973. • BLNG long‐term supplier to Japan  (91%) and Korea (9%) with  exceptional reputation for  delivery and reliability. • BSP supplies 87% of gas to BLNG. • Ongoing asset restoration  programme to position the plant  for a further 20 years of supply  from 2013.

Total E&P Borneo (Block B Joint Venture)
• Venture between Total 37.5%, Shell  Deepwater Borneo 35%, local partner  27.5%, operated by Total. • Active in Brunei in the 1980s,  discovered  oil and gas in three of the  four wells drilled since 1987. • Producing 13% of total BLNG volumes.

Hydrocarbon Value Chain in Brunei

GAS

BBJV (Total/SDB)

12%

7 B Class Tankers

88%

1A Class = 1.66B

Domestic gas

OIL

Oil

3rd Parties (incl Shell)

Refined Products

Oil and Gas Production (primarily BSP)

Infrastructure in Place to Support Oil and Gas Industry

Champion hub

Fleet of modern helicopters

Tender Assist drilling from Bugan

T201 land rig drilling

Marine Construction Yard

Made in Brunei

SCOT terminal

Refinery

Top Safety Performers in Shell Upstream

13

Strong Environmental Focus
BSP Assets are ISO 140001 certified Shell CEO Environment Award Marine and coral surveys Heart of Borneo

14

Technological Excellence
Conventional

Snake Wells First drilled in Brunei Complex horizontal paths Reduces cost / improves recovery Smart Fields BSP is forerunner within Shell 58% of Smart Wells of the Shell Group. Real-time monitoring Remote operations Improves production & recovery

Snake

Production Optimisation Collaboration Centre (POCC) Integrated way of working using advanced technology Better identification, tracking and execution of opportunities Significant oil production monitored in real time

Secondary Recovery

Tertiary Recovery
Piloting & Simulation Modelling Logistics & HSE Chemical Disposal/Re-Injection Emulsion Breaking

Chemical Supply & Manufacture Chemical Formulation
Conventional

Injection QA/QC

Chemical Metering

Precipitation Vertical Injection Conformance Reservoir Surveillance

Scale Inhibition

Chemical Adsorption/ Retention Injectivity

Oil and Gas and Related Industry in Brunei
• Sungai Liang Industrial Park 
– Major development in the western of Brunei. – 271 hectare site developed to be a world class petrochemical hub.  – First major investment is the USD450 million Brunei Methanol plant.

• Brunei Methanol Company
– Joint venture between Petroleum Brunei and two leading Japanese  companies, Mitsubishi Chemical Holdings and Itochu Corporation.  – Methanol agreement signed in 2007. – Plant will give output of 2,500t of methanol per day (850,000t annually). – Officially launched by His Majesty Sultan Hassanal Bolkiah on 25 May 2010. – Officially producing in July 2010.

Brunei Darussalam ‐ Summary
• Politically and  economically stable. • Dependable supplier of  oil and gas for the region. • At the forefront of  technology. • Growth potential in  petroleum sector and  through diversification.

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