Far East: Brunei

FAR EAST

Brunei

In a 50/50 partnership with the government, Brunei Shell Petroleum (BSP) has, until recently, been the sole developer of the country’s hydrocarbons since the onshore Seria field was discovered in the 1920s. Until 1998, it was the only producer of oil and gas; and it now operates 11 oil and gas fields comprising more than 3,000 separate reservoirs. The only other foreign operators now active are Elf, operator of the new Maharaja Lela Jamalulalam (MLJ) field (with partner Fletcher Challenge Energy), and Unocal. The country, through BSP, is a major exporter of LNG from its 1.09-Bcfd gas production (1999); and it exports most of its government-limited 180,000-bpd crude and condensate output (1999), using onshore Seria field output (10,000 bopd) primarily for domestic consumption.

Exploration. More than 175 exploration wells have been drilled in Brunei in the last 100 years, according to BSP’s Managing Director, John Darley, in a comprehensive review published in PetroMin, May / June 1999. Remaining exploration opportunities will likely be found in stratigraphic traps, including deepwater turbidites and deep, HT/HP gas prospects. The only sizeable deepwater find to date is BSP’s Merpati gas-condensate discovery in 1,500-ft water. A new deepwater licensing round has been anticipated for several years, but there is no indication it will happen in the near future.

No license changes were announced in 1999. As of Jan. 1, 2000, Wood Mackenzie notes seven block licenses were active, operated by three companies. BSP operates one onshore and three offshore licenses; Elf operates Block B offshore, including the new MLJ field; Fletcher Challenge and partner Unocal hold interests in Blocks A and C/D.

Only four exploration / appraisal wells were completed last year, half 1998’s total. BSP drilled two noncommercial wildcats on its 1st Offshore Area, Kurisi-1 and Puput 1. And it drilled Iron Duke-21ST1 and Mampak-2 appraisals in 38 and 40-m water depths, both tight-holed. In April 2000, Fletcher Challenge kicked off the first of a reported five-well exploration program on Blocks A and C/D, using the Hakuryu III semi.

Development. Production from the Elf-operated MLJ field started in February 1999 at 105 MMcfd gas and 2,000 bpd liquids. Gas production for the next three years is expected to continue at this rate under the current agreement. Two platforms have been installed (see more detail, World Oil, August 1999) and five development wells have been drilled. Up to 10 were initially planned, but there are no reported plans to add to the existing five. A 53-mi, 22-in. line flows commingled liquid to an Elf-JV onshore processing plant; treated gas is directed to the Lamut LNG plant.

As BSP’s John Darley reported, the company operates 11 oil / gas fields in three operational areas: Offshore West and East, and Land / Coastal. More than 90% of current production comes from offshore, where 600 active wells, 200 structures, 400 pipelines and four manned production complexes offer an extensive infrastructure. Through major studies, BSP plans to move toward a simplified infrastructure, with three (eventually two) manned complexes, and gas compression onshore, just upstream of LNG facilities.

Current goals are to enhance existing fields by 3-D seismic to find undeveloped reserves, and use existing facilities to expand directional / horizontal / slimhole drilling; these facilities will be further utilized by adding well conductors, casing splitters and close-proximity wellheads. Coiled-tubing-deployed electrical submersible pumps and new gravel pack systems are being utilized successfully, along with new completion techniques for horizontal wells. In Ampa field, pipelines are being installed between platforms, and 20 mi of 40-in. line will be laid in 2001 from Ampa 6 to Kuala Belait.

Development drilling on BSP acreage last year concentrated on offshore Magpie, SW Ampa, Iron Duke and Champion fields. A contract was placed for a new gas pipeline and metering station to a new power station at Tutong.