Southeast Asian countries seek to increase offshore oil production

Malaysia  Brunei have signed an agreement recently. The development operations will be managed by Petronas  the Brunei national integration Secretariat (NUS). The agreement was reached during the visit of Malaysian government prime minister Tan Sri Muhyiddin Yassin to Brunei.

Malaysia  Brunei have signed an agreement recently to develop two offshore fields along the maritime border  to conduct larger exploration operations on the recently discovered ultra-deep oil fields, London reported on April 8, 2021.

The two governments signed an integration agreement to develop the eastern offshore oil fields of gumushut kakap  gerongjagus. The development operations will be managed by Petronas  the Brunei national integration Secretariat (NUS).

The agreement was reached during the visit of Malaysian government prime minister Tan Sri Muhyiddin Yassin to Brunei. This is one of several agreements reached during the official visit of the Prime Minister of Malaysia.

"This landmark agreement is now in force  Petronas believes that both sides can expect the strong momentum of energy industry in both countries to continue to continue to promote long-term economic growth  prosperity in Brunei  Malaysia," said Taufik, President  group chief executive of Petronas

The water depth of gumusut kakap oilfield is 1200 meters,  two ultra-deep water projects can be developed, namely, gumushut  kakap projects. The field consists of 19 subsea wells. The location of the maritime border provides a new development area for the oil industry of the two countries.

Malaysia  Brunei will also sign a memorandum of understanding on transport cooperation to develop their partnerships in the areas of safety, security, intelligent transport systems  logistics. In addition, the two countries may soon reach a modern aviation service agreement  are expected to develop partnerships to increase their natural gas resources.

At the 23rd annual consultations of leaders in Brunei, the leaders of the two countries consolidated their existing commitments in the areas of information  communication technology, agricultural food supply chain  distribution, trade  tourism.

This is  the only oil project launched by Brunei in recent weeks. In late March, the Brunei government announced that it plans to double its oil production in the next five years as it begins exploration  drilling operations in deep water wells by Brunei shell oil.

BSP is preparing to drill deep water exploration wells merbah Deep-1  jagus subthrust-1. Since the discovery of seria oilfield in 1929, BSP has been holding a large number of shares in Brunei oil company, with about 4000 employees  more than 20000 contractors.

"The two exploration wells will be the key test to prove the new oil  gas reserves  develop deep-water oil fields, which further conforms to the Department's strong emphasis on the operators' development of existing deep-water fields in the near to medium term," the Brunei Ministry of energy said in a statement on the development

Brunei government hopes to expand national oil production to 350000 barrels per day by 2025, mainly due to deep water exploitation. This is a significant increase  105100 barrels per day in 2020.

In addition to the severe blow  the epidemic, Brunei's oil industry has been declining since 2006, with negative growth for four consecutive quarters in 2020. However, more investment by BSP  new exploration agreements with Malaysia may allow Brunei oil  gas industry to make a significant development in the next decade.

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Source: International Petroleum Network