Onshore Petroleum Blocks Garner Local, International Interest
By CT Hj Mahmod

Bandar Seri Begawan - Since the start of exploration and production on the Sultanate's biggest onshore Blocks- `L' and `M' late August, quite a number of oil companies - both local and international - have shown keen interest in submitting their bids.

This was revealed by the Acting CEO of Brunei National Petroleum Company Sdn B-hd (PetroleumBRUNEI), Awg Mohammad Reduan bin Hj Mohd Yusof, recently.

"Among those interested were several local companies or local companies in partnership with foreign companies," he said.

"And the number of interested oil companies is growing, as there is a fivemonth timeframe till the January 2006 deadline. However, PetroleumBRUNEI anticipates receiving several more bidding offers before this year is over," he added.

PetroleumBRUNEI, wholly-owned by His Majesty's Government through the Prime Minister Corporation, recently launched the 2,253 sq km Block `L' that lies onshore in the Brunei-Muara District as well as part of the Tutong and Temburong Districts, and the 3,011-squarekilometre Block `M' at the southern part of Belait District. Both blocks cover almost three-quarters of the country's area.

The launching of the two onshore blocks was a milestone itself. But the real milestone, according to Acting CEO, has yet to be achieved when the company will award the successful company.

Once the company announces the award, scheduled early 2006, it will take another three to four years of exploration and production process.

PetroleumBRUNEI is currently reviewing bids that the company has received, where Mohd. Reduan explained there is a lot of work that needs to be done with the technical and commercial considerations to.be looked into in great detail, before announcing any awards to successful bidders.

"As Brunei's own national oil company, PetroleumBRUNEI during their internal analysis of the bids have to factor in the balance between the commercial and non-commercial issues," said Mohd. Reduan.

He added that the key towards meeting this balance is to strike a fair balance between the non-commercial (State) and commercial priorities. On the former, he explained how operators would conduct themselves in terms of whether they will fully utilise the local companies who contribute to the Oil and Gas (0 & G) industry here.

Mohd. Reduan also spoke on the equal opportunities for SMEs (Small Medium Enterprises) to get contracts as well as opportunities to develop themselves in having more exposure in the 0 & G industry. PetroleumBRUNEI views itself as providing greater opportunities to these SMEs who not only deal with the technical aspects but also with those in the supporting industry.

"The companies' work programme will be studied in great detail by PetroleumBRUNEI so as to ascertain the best possible offer in terms of the prospectivity of the area and whether it promises equal benefits on both sides," said the Acting CEO.

"How we evaluate the bid is crucial in terms of the companies' level of expertise and experience, and those who take environmental issue and the community impact into consideration." -- Courtesy of Borneo Bulletin

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