By Yulz.
Saturday, 10. November 2007, 12:09:00
Oil and Gas, Brunei Darussalam, BSP
Bandar Seri Begawan - Brunei Shell Petroleum Company Sdn Bhd (BSP) yesterday announced the discovery of gas in the Bubut structure.
The Bubut structure is located just 7 km from the shoreline and only 15 km from the Brunei LNG (BLNG) plant.
According to BSP, well logs that were run and hydrocarbon samples taken have confirmed the latest gas findings. The exploration well was drilled by the Deep Driller 2 rig in deep, high-pressure sand reservoirs.
As a result of the Bubut discovery, a re-evaluation of the nearby Danau structure, which was drilled in the 1970s will also be implemented. The additional appraisal work will be conducted in both fields to define the full potential.
A development team has been put in-place to prepare an integrated field development proposal for early production directly into the BLNG plant.
The Bubut discovery is considered important in that the Bubut-Danau area as it may very well emerge as a third offshore gas production hub for BSP, supplementing the existing Ampa and Champion gas fields.
Dr Grahaeme Henderson, Managing Director of BSP commenting on the new find said that the latest gas discovery is important to fulfilling the LNG contract.
"You can see the BLNG plant from the exploration rig; the discovery is in shallow waters and close to existing infrastructure and, as such, we are confident of bringing production onstream in the shorter term."
Dr Grahaeme Henderson added, "A critical contribution towards the Bubut success has been the close working between the many teams in BSP, including exploration, drilling and development. Another key contributing factor is the wide-scale programme the company has undertaken to improve overall business performance in the last 18 months".
This programme said the Managing Director addressed all areas that impact BSP bottom-line and has produced overall excellent results and it includes increasing the uptime of drilling rigs, which was also of benefit to this discovery.
BSP is one of the leading oil and gas companies in Asia and has already established an international reputation as a centre of technological excellence in the usage of snake wells, fishhook wells and smart fields.
Last year BSP announced that it has completed its longest snake well in the Champion West Phase 3A field, located some 90 kilometres offshore.
The Snake Well design was created in 2001 by BSP to improve reservoir access and deliverability.
Brunei has also emerged in the global front as one of the leaders in smart field technology after BSP successfully installed one of the world's advanced smart field platforms, the Champion West in 70 m of water off the coast of Brunei.
The company's unmanned Champion West platform is one of the world's most sophisticated and technologically advanced offshore facilities.
Engineers in BSP’s Head Office are able to monitor and improve the performance of the offshore well and facilities through a computer controlled system on the platform that allows remote well testing. -- Courtesy of Borneo Bulletin
By Yulz.
Thursday, 18. October 2007, 01:23:06
Oil and Gas, Brunei Darussalam
Bandar Seri Begawan - The steep rise in oil and gas prices in the world market has stimulated Brunei's economy, increasing revenues and GDP per capita, local analysts said.
Crude oil prices have soared nearly 10 per cent in just eight days to hit an all-time high of nearly US$88 a barrel Tuesday.
Investors have cited rising tensions between Turkey and Kurdish separatists in northern Iraq, steady world energy demand, tight inventories in consumer nations heading into winter and unprecedented weakness in the US dollar as reasons for the spike.
Last year, the oil hit a peak of US$78 per barrel in July 2006 due to global political turmoil and a rise in oil inventory position in the US.
However, two months later the price fell drastically to US$52 per barrel, the lowest in two years.
The fall in oil price coupled with the fall in the US dollar would affect the country's income in local currency value, the 2007/ 2008 Sultanate's budget deliberations heard early this year.
The deliberations highlighted that the changes which occurred within the short period showed the volatility of the world oil prices and its effect on the country's income that rely heavily on the sector.
Hence, such developments give a clearer picture on the need for the nation to give special attention to strengthen the private sector, intensify the economic base and the country's revenue.
In fiscal aspect, the country was able to increase reserves and investments thanks to the high oil price in 2006.
With such volatile oil prices and fall in US currency, the government should continue to practise the fiscal consolidation policy to strengthen the country's finance to be competitive in facing the ever-changing and unpredictable global situation, while at the same time the nation would continue to enjoy balanced and sustainable growth in the long term, analysts said.
Taking into account such volatility and currency exchange, the country's income for 2007/2008 was based on the oil prices in the long term, which was by taking into account the stable world oil prices not influenced by outside factors that exert pressure on world supply and demand, production capacity, especially spiralling exploration costs and a more appropriate Brunei US exchange rate.
Nearly 90 per cent of the government's estimate, $5.7 billion income came from oil and gas.
Meanwhile, the Department of Economic Planning and Development (JPKE) last week stated that the higher average oil and gas prices in first and second quarter of this year would continue to maintain the government's revenue and fiscal surplus balance and overall trade balance surplus with a moderate inflation rate.
The annual national account 2006, published by JPKE, stated that the oil and gas sector improved its performance by growing 5.7 per cent compared to one and 2.6 per cent in 2004 and 2005 respectively. -- Courtesy of Borneo Bulletin