VidDaCom will become the first local oil and gas service provider to own and operate a Liquid Mud Plant (LMP), supporting Brunei Shell Petroleum’s (BSP) renewed drive to increase production through expanded drilling activities.
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 mixing systems to produce mud – an essential drilling fluid for wells.
BSP Wells Manager Ian Hamill said BSP is striving to increase production levels, undertaking drilling activity across exploration, onshore and offshore wells, including deepwater opportunities.
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.
“Last year we saw a good increase. We’re hoping to do that again this year. But we really need to grow the business. So we’re looking for partners who will work with us, deliver really cost-competitive wells,” Hamill said in a speech, adding: “The mud forms the key barrier in the well, so it is absolutely crucial from a safety point of view.”
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 company.”
Nazri added that the plant will be able to handle oil-based mud, water-based mud, synthetic oil-based mud and brine, giving VidDaCom capacity to support different well requirements.
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.
The company began in 2003 as VidDa Enterprise, supplying liquids and chemicals used to clean and treat wells through coiled tubing operations.
It was incorporated as VidDaCom (B) Sdn Bhd in 2007, securing BSP contracts that same year to supply well-related products, including downhole equipment and potassium formate.
In 2011, the company received a BSP Managing Director Award after saving BND 800,000 by blending old drilling chemical stock, helping to minimise health, safety, security and environmental hazards while avoiding wastage.
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.
