Who Owns Shell Oil? Brunei's Sovereign Wealth Fund

Brunei Shell Petroleum (BSP) is a joint venture between the Government of Brunei and Shell, which has been present in the country for over 90 years. The British Malayan Petroleum Company (BMP), owned by Royal Dutch Shell, discovered commercial amounts of oil in Brunei in 1929. BSP is the largest oil and gas company in Brunei and contributes around 90% of the country's oil and gas revenues. It is not clear, however, whether Brunei owns Shell Oil.

Brunei Shell Petroleum (BSP) is the largest oil producer in Brunei

Brunei Shell Petroleum (BSP) is a joint venture between the Government of Brunei and Shell. The British Malayan Petroleum Company (BMPC), owned by Royal Dutch Shell, first found commercial amounts of oil in 1929. Since then, BSP has become the largest oil and gas company in the Sultanate, employing a diverse and highly qualified workforce of around 4,000 people and more than 20,000 contractors.

As the backbone of Brunei's economy, BSP plays a crucial role in supporting the country's growth and development. The company's core activities include exploring, producing, and exporting oil and gas from onshore and offshore fields for domestic use and international markets. These operations are supported by skilled professionals in various functions, including technical roles such as Petrophysicists and Petroleum Engineers, as well as corporate roles in Legal, Contracting, Procurement, Aviation, and Marine Specialisations.

BSP's contribution to Brunei's oil and gas revenues is significant, accounting for around 90% of the total. The company's history in the country dates back to the discovery of the Seria field in 1929, marking the beginning of a long-standing partnership between Brunei Darussalam and Royal Dutch Shell.

Over the years, BSP has not only been a major economic driver but also a key contributor to the nation's export earnings. The company's commitment to sustainability, as reflected in its "Sustainably Powering Brunei" mission, further underscores its dedication to the country's long-term prosperity.

In summary, Brunei Shell Petroleum (BSP) stands as the largest oil producer in Brunei, shaping the country's economy and energy sector with its substantial contributions to oil and gas revenues and exports.

Brunei's oil and gas industry has fuelled the country's growth and development

Brunei's oil and gas industry has been the dominant force in the country's economy for the past 90 years. From the first well discovery in Ayer Berkunchi in 1899 to the establishment of the Petroleum Authority of Brunei Darussalam in 2019, the industry has fuelled the country's growth and development.

The history of the oil industry in Brunei began in 1899 when the first exploration well was drilled near the capital, Brunei Town. This was followed by the discovery of the Seria field in the Belait District in 1929 and a series of commercial discoveries, leading to Brunei's first oil export in 1932. Brunei Shell Petroleum (BSP) is the largest oil producer in the country, contributing around 90% to Brunei's oil and gas revenues.

Over the last decade, Brunei has made significant investments in expanding its downstream industries, diversifying its product portfolio in the oil and gas value chain. The energy sector is the main contributor to the country's growth, with a 64.7% share of GDP in 2022.

To sustain long-term production, the government and oil and gas operators work collaboratively. The establishment of the Petroleum Authority of Brunei Darussalam, the regulatory body for the industry, marks a significant milestone in its development. The authority's long-term vision is to establish a progressive and resilient industry that can adapt to the changing market and secure the country's future.

Brunei continues to maximise the potential of its mature oil and gas fields while also undertaking further exploration and development activities. The country aims to ensure that locals are highly educated and technically skilled to meet the industry's needs.

In recent years, Brunei has discovered 42 million barrels of oil equivalent, and the government plans to boost production by drilling more exploration wells offshore and offering more blocks to attract new operators. The country hopes to achieve its ambitious output growth targets by leveraging new offshore developments, marginal fields, and enhanced oil recovery techniques.

The oil and gas industry in Brunei has a bright future, with plans to further expand and diversify its product portfolio. The country's economy is heavily reliant on this sector, and the government is taking the necessary steps to ensure its long-term sustainability.

Shell plc is a British multinational oil and gas company

Shell was formed in April 1907 through the merger of the Royal Dutch Petroleum Company of the Netherlands and The "Shell" Transport and Trading Company of the United Kingdom. The combined company rapidly became the leading competitor of the American Standard Oil and by 1920, Shell was the largest producer of oil in the world. Shell has operations in over 99 countries, produces around 3.7 million barrels of oil equivalent per day and has around 44,000 service stations worldwide. The company is vertically integrated and is active in every area of the oil and gas industry, including exploration, production, refining, transport, distribution and marketing, petrochemicals, power generation, and trading.

Shell USA, its principal subsidiary in the United States, is one of its largest businesses. Shell holds 44% of Raízen, a publicly-listed joint venture with Cosan, which is the third-largest Brazil-based energy company. In addition to the main Shell brand, the company also owns the Jiffy Lube, Pennzoil and Quaker State brands.

In January 2022, the firm merged its A and B shares, moved its headquarters to London, and changed its legal name to Shell plc. This followed a period from 2005 to 2022 when the company had its headquarters in The Hague, its registered office in London, and operated as a dual-listed company, with the British and Dutch companies maintaining their legal existence and separate listings but operating as a single-unit partnership.

Brunei Shell Petroleum is a joint venture between the Government of Brunei and Shell

Brunei Shell Petroleum (BSP) is a joint venture between the Government of Brunei and Shell. The British Malayan Petroleum Company (BMPC), owned by Royal Dutch Shell, first found commercial amounts of oil in Brunei in 1929. Since then, Shell has been present in Brunei for more than 90 years, with its activities mainly carried out by non-Shell-operated joint-venture companies.

The discovery of oil in Seria, Brunei, in 1929, was made by a Shell company called Sarawak Oilfields Limited, and the oil production was operated by another Shell company called British Malayan Petroleum Company Limited. The Brunei Shell Petroleum Company Limited did not operate until 1957. BSP is the largest oil and gas company in Brunei, a sector that contributes 90% of government revenue. It is also the largest oil producer in Brunei and contributes around 90% to Brunei's oil and gas revenues.

The history of the oil industry in Brunei began in 1899 when the first exploration well was drilled near the capital, Brunei Town, now known as Bandar Seri Begawan. The drilling went down as deep as 850 feet, but no oil was discovered. In 1913, Royal Dutch Shell started operations in Brunei after discovering the Miri field in Sarawak, Malaysia. By 1918, all other companies had pulled out except Royal Dutch Shell, which continued to search and found some accumulation of oil and gas in Labi, Belait in 1924. The find was too small to be commercialized.

In 1925, the search shifted to the Seria, Belait coastal strip in the west of the state. In 1929, the first commercial find was made at Seria, Belait by the British Malayan Petroleum Company, owned by Royal Dutch Shell. This discovery turned Brunei into one of the world's richest places, as government revenues began to rise rapidly. Brunei's vast reserves of petroleum and gas have fueled the nation's economy since the 1930s.

Over the last decade, Brunei has made substantial investments in the expansion of its downstream industries to diversify its product portfolio in the oil and gas value chain. The energy sector is the main contributor to the country's growth, with 64.7% of the country's GDP in 2022.

Shell has been present in Brunei for more than 90 years

Shell has been present in Brunei for over 90 years, with its activities mainly carried out by non-Shell-operated joint-venture companies. The British-Dutch company first entered the Southeast Asian country in the early 20th century, initially discovering the first oil well in Borneo in 1910, in Miri, Sarawak. In 1914, following this discovery, Shell built Borneo's first oil refinery and laid a submarine pipeline in Miri.

In Brunei, Shell's operations are primarily conducted through joint ventures with local partners. Brunei Shell Petroleum (BSP) is a notable example of such partnerships, playing a significant role in the country's energy sector. BSP is a joint venture between the Government of Brunei and Shell, with the latter holding a 50% stake. It is the largest oil and gas company in Brunei, contributing around 90% of the government's revenue from the industry. BSP's activities include exploration and production, and the operation of refineries and logistics networks.

The history of oil exploration in Brunei is closely tied to Shell's involvement. The discovery of the Seria field in the Belait District in 1929 by the British Malayan Petroleum Company (BMPC), owned by Royal Dutch Shell, marked the beginning of commercial oil exploration in the country. This discovery was followed by a series of commercial finds, leading to Brunei's first oil export in 1932.

Over the years, Shell's presence in Brunei has evolved, and the company has continued to play a significant role in the country's energy sector. Shell's operations in Brunei are focused on exploration and production, with the company investing in the development of new fields and the optimisation of existing ones. Shell's expertise and investment have contributed to the growth and diversification of Brunei's energy sector, enhancing its position as a key contributor to the country's economy.

In recent years, Brunei has been taking steps towards maximising the potential of its mature oil and gas fields while also exploring new opportunities. The establishment of the Petroleum Authority of Brunei Darussalam in 2019 marked a significant milestone in the country's efforts to further develop its oil and gas industry. This regulatory body aims to establish a progressive and resilient industry that can adapt to the changing market demands and secure the country's future.

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