Brunei’s Petroleum Authority (PA) has awarded a production sharing agreement (PSA) for offshore Block C to EnQuest EP BV Limited (EnQuest), with first gas production targeted for 2029.
As the first PSA award in Brunei in over a decade, PA described the agreement as a “significant revival” of the nation’s upstream oil and gas sector, part of its rejuvenation strategy, which was developed towards the end of 2019.
“EnQuest BV Ltd will be the second independent oil and gas company entering our industry in Brunei, following Hibiscus EP in Block B in 2024; increasing to four active operators, underscoring Brunei’s hydrocarbon potential,” said PA Managing Director Shamir Salahudin.
“We envisage that with more new players entering the industry, we will be able to foster a more competitive and dynamic oil and gas landscape. This will provide ample opportunities for creative and innovative collaboration among industry players.”
PA’s rejuvenation strategy also includes other offshore blocks.
Earlier this year, PA launched a licensing round for Blocks A and D, which have a combined area of over 4,000 square kilometers and are located near existing infrastructure, including the Ampa, Fairley, Champion, and Maharaja Lela Jamalulalam fields.
EnQuest EP BV Limited is the Brunei-incorporated subsidiary of UK-based EnQuest PLC, which has a growing Southeast Asian portfolio spanning operations in Malaysia, Vietnam, and Indonesia.
PA said that pre-development activities were already underway for Block C, with the PSA expected to create new employment and business opportunities.
EnQuest’s General Manager for Southeast Asia, Ahmed Radzif PM Mustafa Kamal, highlighted the company’s expertise in developing mature and late-life field operations, including those in deepwater.
“Our capabilities have seen us develop greenfield projects in the UK ahead of time and budget, while extending field life for fields we took over in the UK and Malaysia,” he said.
“We are now focused on Southeast Asia, and recently completed the acquisition of the Chim Sao and Dua fields in Vietnam. In Indonesia, we’ve been awarded two new exploration blocks. In Malaysia, we operate two PSCs where we’ve been honoured by Petronas as PSC Operator of the Year for the last two consecutive years.”
In 2024, Brunei’s oil and gas sector averaged just under 100,000 barrels of crude oil and 27.4 million cubic metres of natural gas per day. The overall sector grew by 5.5%, accounting for 46.7% of the country’s BND 20.6 billion GDP.
The value chain of Brunei’s upstream oil and gas sector is increasingly being extended by its downstream segment, which has made significant progress since 2019 — more than doubling its share to over 11% of GDP by 2024.
Outputs from multi-billion-dollar projects — Hengyi Industries’ refinery and petrochemical plant on Pulau Muara Besar, and Brunei Fertilizer Industries’ urea production facilities — have been key drivers behind the sector’s recent progress, complementing earlier downstream outputs from Brunei Methanol Company.
