New Oil And Gas Bonanza To Speed Up Brunei Economy
By Azaraimy HH

Bandar Seri Begawan - The country's economic growth in all sectors is expected to accelerate soon with the increase in drilling activities and production of oil and gas from deepwater areas of Brunei's Exclusive Economic Zone (EEZ).

The Minister of Industry and Primary Resources, Pehin Dato Hj Abdul Rahman, said this Saturday during the annual Oil and Gas Directors' Night, involving Brunei Shell Petroleum Sdn Bhd, Brunei Shell marketing Sdn Bhd, Brunei Shell LNG Sdn Bhd and Brunei Shell Tankers Sdn Bhd.

Though the Sultanate reaped much benefits of the socio-economic development from its oil and gas industry through "concession concept", Pehin Rahman highlighted the government's bold move to choose "Production Sharing" for the new EEZ deepwater areas on offer.

Since the formation of EEZ, the National Brunei Petroleum Sendirian Berhad has held discussions pertaining to productions from Block J and K. The discussions have resulted in a production sharing agreement between Brunei Petroleum and Block J consortium consisting of TotalFinaElf, BHP Biliton and Amerada Hess. The agreement reached early this month was the biggest ever to be signed for the production of the country's oil based on the concept of concession.

Negotiations for Block K are also in the final stages.

The consortium has also agreed to utilise local goods and services in their operations, which the minister believed would boost industries such as hospitality, banking and transportation.

The consortium is also committed to offer and train Bruneians in various fields of work required in the drilling process. It is expected that at the initial stage at least 50 per cent of the labour force will make up of locals and that number is expected to increase depending on the capability of the consortium.

The minister also touched on the government efforts in implementing what he called "strategic projects" by government agencies aimed at stimulating the economy.

The success of Brunei Shell Petroleum in implementing concessions, the minister said, was due to the mutual understanding and cooperation from all the company's shareholders comprising government authorities and the Shell International.

The minister also highlighted on the government's strong trust on the abilities of the Bumiputra and citizens in taking the industry to new heights. (Courtesy of Borneo Bulletin)

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