Brunei's Record Impresses TOTAL
By Azlan Othman

Bandar Seri Begawan - Oil and gas reserves in the world would begin to decline in the second part of the present century while the present supplies would last 15 to 35 years.

This prediction was made by Mr Louis Heuze the General Manager of TOTAL E&P Deep Offshore Borneo BV, the world's fourth largest Oil and Gas Company in an interview with Weekend Bulletin.

While revealing that the world's peak oil will be reached sometime between 2025 and 2035, Mr. Heuze said that it was time we thought about the future. "Brunei is endowed with excellent assets, to prepare for the future. But the country must begin now," he added.

TOTAL, has been in Brunei for 20 years, represented by TOTAL E&P Borneo BV which is the operator with a 37.5 per cent interest in the offshore Block B while TOTAL E & P Deep Offshore Borneo BV is the operator with a 60 per cent interest in the deep offshore Block J. Referring to the economic benefits of the current surge in oil prices to the country, Mr Heuze said the rise in oil prices increases Brunei's revenue and GDP per capita.

He stressed on the need for people to think about the future and cautioned against the risk of being satisfied with only the revenue from oil and gas.

He said Brunei has a well-balanced standard of living and he could see very positive aspects of the country where the nation made good use of the revenue from oil and gas.

"But we have to ensure that this satisfaction does not contain any risk of complacency based on the revenue from oil and gas. We have to understand that oil and gas are finite resources and we have to think about the future.

"Brunei certainly has additional reserves in oil and gas yet to be found. These are hard to develop like those beneath the deep waters. Like in other places in the world, the easiest reserves have already been found.

"And knowing that it takes at least four, or even six years, to develop oil and gas fields in about 5,000 feet water depth or onshore with high technological problems to solve, it is therefore necessary to encourage as much as and as fast as possible the oil company involved in exploration and production to enhance their exploration.

"Otherwise, we may have earlier than expected decline on the hydrocarbon production in the country," he said.

Asked on whether the oil prices will linger around US$50 dollars per barrel this year, he said it is very difficult to predict. "OPEC has the possibility to stabilise the barrel up to a certain extent. But if political problems arise in a harsh manner in some parts of the world, it may happen that the price would jump within a few weeks," he said.

On TOTAL's view on future opportunities for Brunei within the oil and gas sector, he said there are still potential additional reserves. But we need to have some guarantees on the future economic environment for developing the eventual reserves we may find.

"TOTAL is ever ready to assist entrepreneurs as well as to help develop educational programmes to prepare for a future beyond oil and gas. TOTAL programmes such as these are already being successfully implemented in Angola, Myanmar, etc," he said.

TOTAL's pragmatic approach to sustainable development will allow Bruneians to leverage TOTAL's expertise in strategy, economy, technology and other fields. In Brunei, we certainly can help people to acquire skills and expertise in many fields.

One of the recent sustainable development programmes realised by the branch was the sponsorship of Universiti Brunei Darussalam for their Geoscience programmes, with commitment amounting to nearly half a million Brunei dollars per year over the next three years.

This will help young Bruneians to develop their knowledge in the oil and gas industry, and will allow them to be marketable in any oil and gas industry around the world.

He also said that the branch is keen to participate in preservation of the environment initiatives and other actions regarding biodiversity.

Regarding societal programmes, Mr Heuze was ready to discuss ideas with the Brunei Economic Development Board any proposals it may have that pertain to business activities which may help prepare Brunei for the future.

Heuze said TOTAL's objective in Brunei is not only to produce oil and gas but to integrate themselves in the landscape and to accompany the host country to develop in preparation for extension of oil and gas resources.

Mr Heuze has been in Brunei for the past six weeks. Louis Heuze serves as General Manager for TOTAL E&P Borneo B V, a position he has held since January 2007. He joined Total Exploration and Production in 1973 and has held various positions, with most of his career in the fields of drilling, production and operations management in several affiliates with onshore or offshore activity. -- Courtesy of Borneo Bulletin

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