Brunei's economy is heavily reliant on exports of crude oil and natural gas, with the petroleum sector accounting for over half of its GDP. As the third-largest oil producer in Southeast Asia, it produces an average of 180,000 barrels of oil per day, with recent years seeing a production of 127,000 barrels per day (2024) and 93,000 barrels per day (2023). In terms of natural gas, Brunei produces 439,671.75 million cubic feet of natural gas per year, exporting 68% of this amount. As of 2015, Brunei held 9.2 trillion cubic feet of proven natural gas reserves, ranking 35th in the world.
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Brunei's oil and gas exports
Brunei's economy is heavily reliant on exports of crude oil and natural gas, with revenues from the petroleum sector accounting for over half of its GDP. The country is the third-largest oil producer in Southeast Asia, with an average production of about 180,000 barrels per day, though this figure has fluctuated over the years, with a peak of 240,000 barrels per day in 1979. In 2023, oil production stood at 93,000 barrels per day, down from 126,000 barrels per day in 2014. Brunei's oil and gas fields produce approximately 127,000 barrels of oil per day and 243,000 barrels of oil equivalent of natural gas per day. The country hopes to increase production in the coming years with the help of new oil extraction technology.
Brunei holds 9.2 trillion cubic feet of proven gas reserves, ranking 35th in the world, and accounting for about 0.133% of the world's total natural gas reserves. The country produces 439,671.75 million cubic feet of natural gas per year, exporting 68% of its production. In December 2023, Brunei's natural gas exports were reported at 5,502,000 cubic metres, a decrease from 6,170,000 cubic metres in December 2022. The country is the ninth-largest producer of liquefied natural gas in the world, with almost all of its natural gas being liquefied at the Brunei Liquefied Natural Gas (LNG) plant, which is one of the largest LNG plants globally. Over 82% of the LNG produced is sold to Japan under a long-term agreement, with the rest supplied to the Korea Gas Corporation.
Brunei's proven oil and gas reserves are expected to last until at least 2035, and the country is seeking to extend the life of its reserves by cutting back on production and improving recovery rates. The petroleum sector has faced challenges in recent years due to declining oil prices and drops in production caused by maintenance and repair work at major oil wells, resulting in budget deficits. Despite these challenges, the sector continues to be a significant contributor to Brunei's economy, with companies such as Brunei Shell Petroleum, the country's largest oil and gas company, driving commercial opportunities and economic growth.
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Natural gas reserves
Brunei Darussalam holds 9.2 trillion cubic feet (Tcf) of proven natural gas reserves as of 2017, ranking 35th in the world and accounting for about 0.133% of the world's total natural gas reserves. This equates to 0.2223 trillion cubic metres, a figure that has remained unchanged between 2020 and 2021.
In terms of consumption, Brunei Darussalam consumes 138,929 million cubic feet (MMcf) of natural gas per year as of 2017. This places Brunei Darussalam in 66th place in the world for natural gas consumption, accounting for about 0.1% of the world's total consumption. On a per capita basis, this amounts to 321,021 cubic feet of natural gas per capita every year, or 880 cubic feet per capita per day, based on the 2017 population of 432,772 people.
Brunei's natural gas production stood at 439,671.75 MMcf per year as of 2015, ranking 42nd in the world. Of this, 68% was exported (300,884 MMcf in 2015). In December 2023, Brunei's natural gas exports were reported at 5,502,000 cubic metres, a decrease from 6,170,000 cubic metres in December 2022. The data reached an all-time high of 9,810,000 cubic metres in 2006.
According to Brunei's energy minister, Mat Suny bin Mohd Hussein, the country plans to boost oil and gas production following the discovery of 42 million barrels of oil equivalent in 2021. This discovery is expected to reverse a projected decline in upstream output, with several more exploration wells to be drilled offshore and new blocks offered to attract new operators. Brunei's oil and gas sector was hit hard by the COVID-19 pandemic, with crude production plunging to a record low in the third quarter of 2021 due to production disruptions.
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Oil production
Brunei Shell Petroleum (BSP), a joint venture between the Brunei Government and the Royal Dutch/Shell group, is the chief oil and gas production company in the country. It also operates the country's only refinery, which has a distillation capacity of 10,000 barrels per day—enough to satisfy domestic demand for most petroleum products.
The French oil company Elf Aquitaine has also been active in petroleum exploration in Brunei since the 1980s, and its affiliate Elf Petroleum Asia BV has discovered commercially viable quantities of oil and gas in three out of four wells drilled since 1987.
Brunei's oil and gas fields produce approximately 127,000 barrels of oil per day, and the country hopes to increase production in the coming years. New oil extraction technology and the current market price of oil have made it economically viable to extract oil from mature fields and venture into new deep-water drilling.
Brunei's proven oil and gas reserves are expected to last until at least 2035, and deep-sea exploration may find further reserves, although this can be costly. The country's leaders are concerned about the economy's heavy reliance on oil and gas and are working to diversify, although these efforts have had limited success so far.
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Natural gas production
Brunei's economy is heavily reliant on the export of natural gas and oil, with revenues from the petroleum sector accounting for over half of its GDP. In 2015, Brunei produced 439,671.75 million cubic feet (MCF) of natural gas per year, ranking 42nd in the world. The country exports 68% of its natural gas production, with Japan being the main customer. In December 2023, Brunei's natural gas exports were reported at 5,502,000 cubic meters, a decrease from 6,170,000 cubic meters in December 2022.
Brunei holds 9.2 trillion cubic feet (TCF) of proven gas reserves as of 2017, ranking 35th in the world. These reserves are equivalent to 66.2 times the country's annual consumption and are estimated to last for 66 years at current consumption levels. Brunei's natural gas consumption stands at 138,929 MCF per year, ranking 66th in the world. This equates to a per capita consumption of 321,021 cubic feet of natural gas per year, or 880 cubic feet per capita per day.
Brunei Shell Petroleum (BSP), a joint venture between the Brunei Government and the Royal Dutch/Shell group, is the country's primary oil and gas production company. The company also operates the nation's sole refinery, which has a distillation capacity of 10,000 barrels per day, meeting domestic demand for most petroleum products. Other major players in the industry include Elf Petroleum Asia BV, which has discovered commercially viable quantities of oil and gas in the country, and Brunei Liquefied Natural Gas (BLNG), a major player in the petrochemical industry.
Brunei's oil and gas fields produce approximately 127,000 barrels of oil and 243,000 barrels of oil equivalent of natural gas per day. The country aims to increase production in the coming years, with new oil extraction technology and favourable market prices making it economically viable to extract oil from mature fields and venture into deep waters. The government has also launched initiatives to strengthen sustainable energy efforts, such as the National Climate Change Policy, which aims to reduce industrial emissions and increase renewable energy usage.
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Oil exports
Brunei Shell Petroleum (BSP), a joint venture between the Brunei Government and the Royal Dutch/Shell group, is the country's primary oil and gas production company, also operating the nation's sole refinery. The company is the largest employer in Brunei after the government, and its small refinery has a distillation capacity of 10,000 barrels per day, meeting domestic demand for most petroleum products.
In addition to BSP, other major players in the oil industry include Elf Petroleum Asia BV, which has discovered commercially viable quantities of oil and gas in three out of four wells drilled since 1987, and Brunei Liquefied Natural Gas (BLNG), a major player in the petrochemical industry.
Brunei's oil production peaked in 1979 at over 240,000 barrels per day, but has since been deliberately cut back to extend the life of reserves and improve recovery rates. The country's leaders are concerned about the economy's heavy reliance on oil and gas and are working to diversify, with agriculture, forestry, fishing, and banking among its non-petroleum industries.
Despite these efforts, oil and gas still dominate, and fluctuations in production and prices continue to create uncertainty and instability in the economy.
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Frequently asked questions
Brunei exports 68% of its natural gas production, which was 439,671.75 million cubic feet per year as of 2015. This equates to 300,884 million cubic feet in 2015.
Brunei exports almost all of its oil production, which was 127,000 barrels per day in 2023.
As of 2015, Brunei produces 439,671.75 million cubic feet of natural gas per year.
Oil production in Brunei stood at 93,000 barrels per day in 2023.
As of 2017, Brunei consumes 138,929 million cubic feet of natural gas per year.