Brunei Darussalam

Basic Facts:

Government: Islamic absolute monarchy

GDP: $ 14,97 billion

GDP Composition: 0,7 % Agriculture, 74,1 % Industry, 25.3 % Services

GDP Growth rate: – 1,9 %

Budget Revenues: $ 6,889 billion

Budget Expenditures: $ 4 billion (2008 est.)

Natural resources: Oil and natural gas.

Industry Product: petroleum, petroleum refining, liquefied natural gas, construction

Maps: Click on the maps to enlarge:



Extractive industries: brief overview

Brunei is important to world energy markets because it exports nearly 180,000 barrels per day of oil, is a large liquefied natural gas producer (third largest in Asia), and because of its location to vital sea lanes, through the South China Sea, linking the Indian and Pacific Oceans. Brunei’s economy is based heavily upon proceeds from exports of crude oil and natural gas, with revenues from the hydrocarbons sector accounting for 67% of gross domestic product (GDP), around 80%-90% of export earnings, and 75%-90% of government revenues. Per capita GDP places Brunei among the World Bank’s high-income non-OECD group of countries, with substantial income from overseas investment supplementing income from domestic sources.[1] Along with Singapore, Brunei demonstrated a stable and developed economic condition that encourage the country to actively support most of economic cooperations in ASEAN. Brunei has a small well-to-do economy that encompasses a mixture of foreign and domestic entrepreneurship, government regulation, welfare measures and village tradition.

Brunei Darussalam existing and potential oil and gas reserves lie within the economy northern landmass and extend offshore to the outer limits of its exclusive economic zone (EEZ). Most of them are located in scattered sites around 70 kilometers offshores. In 2007, crude oil and condensate production averaged 194 thousand barrels per day (Mbbl/D). Gas production was around 34 million cubic meters a day, most of which was exported to the major markets of Japan and South Korea as liquefied natural gas (LNG).[2] An important milestone for Bruinei Darussalam was the signing of new Production Sharing Agreement for the oil and gas blocks: offshore Block J and Block K in 2003, and onshore Block L and Block M in 2006. These blocks are considered important for the economy to be able to maintain and extend oil and gas production in the future. The awarding of Block J and Block K by the government has been disputed by Malaysia because of overlapping sovereignty claims for the offshore area included in those two blocks. The two economies have been negotiating to resolve this conflict and an important milestone was achieved when a Letter of Exchange was signed on this matter by both economies early 2009. Block J and K are located in the deepwater of Brunei Exclusive Economic Zone (EEZ), about 100 km northwest of the coast of Brunei. Block J was awarded to a consortium made up of Total, BHP Billiton and Amerada Hess and Block K was awarded to a consortium made up of Shell Group, ConocoPhillips and Mitsubishi Corporation. Block L lies in eastern onshore Brunei Darussalam. PetroleumBRUNEI and the Block L consortium signed the Production Sharing Agreement on 28 August 2006. The current consortium members are: Nations Petroleum (SE Asia) Limited (50%) as the operator, Kulczyik Oil Ventures (40%) and QAF Brunei Sdn Bhd (10%).

Brunei Darussalam implements a five-year economic development plan known as the National Development Plan. Under the plan, energy policy is directed towards efforts to strengthen and expand the oil and gas industry. In line with this plan, the economy has also launched a long-term development plan, the Brunei Vision 2035. The plan states that economy major goal for the next three decades is economic diversification, along with strengthening of the oil and gas sector.[3]

Government body: Energy Division of the Prime Minister Office headed by the Minister of Energy, Brunei Oil and Gas Authority (BOGA), Department of Electrical Services.

National company: Brunei Shell Petroleum (jointly owned by the government and Royal Dutch Shell), Loon Brunei Limited (Loon) and QAF Brunei Sdn Bhd (QAF), and Brunei National Petroleum Company Bhd (PetroleumBRUNEI). Petroleum BRUNEI is given designated Areas for which the company has the right to negotiate, conclude and administer petroleum sharing agreements. Currently, PetroleumBRUNEI designated Areas are the onshore Block L and Block M and the offshore Block J and Block K.[4]

External company: Total, BHP Billiton and Amerada Hess, Shell Group, ConocoPhillips and Mitsubishi Corporation, ChinaOil USA (Macao) Co. Ltd (now known as China Sino Oil Co. Ltd), Valiant International Petroleum Ltd (now known as Triton Borneo Ltd) and Jana Corporation Sdn Bhd

Current condition:

No. Category Production


Contribution to GDP (real growth rate)
1. Oil 175,200 bbl/day (est. 2008) 15 thousand barrels per day (2008)
2. Gas 12.25 billion cubic metres (2007)
3. Coal 0 0
4. Minerals
* Note: production of crude oil (including lease condensate), natural gas plant liquid and other liquids, and refinery processing gain (loss)

[1] Accessed from, 6 July 2010, 20.00 WIB
[2] Asia Pacific Energy Research Centre (APREC) and The Institute of Energy Economics Japan, APEC Energy Overview 2009, March 2010, p.12

[3] Ibid., p. 13.

[4] Ibid., p. 14.