VidDaCom will become the first local oil and gas service provider to own and operate a Liquid Mud Plant (LMP) supporting Brunei’s upstream oil and gas production by supplying drilling fluids used in well operations.
The LMP will have 23,000 barrels of mud tank capacity, with construction expected to begin in the coming weeks and operations targeted for October this year.
The project was launched during a groundbreaking ceremony yesterday at VidDaCom’s Integrated Supply Base (VISB) at the Brunei Economic Development Board’s (BEDB) Serasa Industrial Site.
VidDaCom will develop the LMP in partnership with SLB, leveraging the global oilfield services company’s technical expertise to build the plant’s mixing systems.
The plant will be able to handle different types of drilling and completion fluids, including oil-based mud, water-based mud, synthetic oil-based mud and brine.
The plant will support upstream oil and gas activity at a time when Brunei’s crude oil production is recovering. Brunei’s crude oil output grew 7.9% in 2025 to 107,000 barrels per day, up from 99,200 in 2024 and 89,400 in 2023, marking a second consecutive year of recovery.
The upcoming LMP is another milestone for local MSMEs in the oil and gas industry, transferring ownership and operation of a specialised service typically led by multinational service companies or major upstream operators.
For VidDaCom, owning its own LMP builds on experience gained from operating another multinational company’s LMP at its integrated supply base, which it took over in 2018. The existing LMP is expected to be phased out once the new facility is operational.
“When we took over, we set up a very long roadmap with a vision to own and operate a mud plant that belongs to a local company,” VidDaCom General Manager Nazri Abdullah said. “It will also be cheaper in the long run for the country.”
VidDaCom’s move into LMP ownership follows its progression as a local provider moving deeper into the oil and gas value chain, especially in well-related services.
VidDaCom was incorporated in 2007 after beginning as VidDa Enterprise in 2003, supplying liquids and chemicals for well services and other oil and gas operations.
Through VISB, the company also operates a private jetty that can berth one vessel, supporting cargo movement, vessel services and other offshore support activities.
The company currently employs 50 people, 84% of whom are Bruneians.
