Twin Luck Smiles For Brunei’s Flagging Economy
By Ignatius Stephen

Bandar Seri Begawan – With the prospect of Brunei continuing to strike big time, once again fortune smiles on the sultanate with billions of dollars pouring into its coffers.

Now, as good times are due here again, it is a matter of ‘twin luck’ that is destined to carry Brunei out of a situation, which it found itself during the latter part of the last decade when oil prices fell together with the value of liquefied natural gas (LNG).

As the sultanate is dependent on oil and gas for its economic well being, the picture that looked bleak began to change dramatically especially last year as it exported a record 194 shipments of LNG cargo to Japan and South Korea.

In accordance with the then prevailing prices last year, it netted a whooping $2 billion in sales for Brunei.

 “We hope to do even better this year,” Dato Haji Hamdillah Wahab, the Brunei Liquefied Natural Gas (BLNG) chief told Sunday Bulletin. “It is a very challenging target that will require the hard work and inventiveness of the plant’s work force in realising the challenging 2001 annual plan called Total Focus 200,” he added.

The world crude oil price governs the value of LNG. And oil prices, which began to rise two years ago, are still being maintained, which means that Brunei will benefit from both the high oil price and the linked cost of LNG.

Exporting an estimated 200,000 barrels of crude oil a day, Brunei has netted approximately another $2 billion, sources said.

This “twin luck” of oil and gas situation is expected bail Brunei out of its financial doldrums and the signs are that high world energy prices will prevail for some time, ensuring Brunei’s continued financial stability.

“Brunei’s cup was half full but now it will soon overflow with good fortune. A good portion of it will surely find itself into the local economy, igniting the system.

“It is only a matter of time it will trickle down. We only have to wait,” an official commented hopefully, adding it will be up to the government to do this as soon as the appropriate time comes.

 
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