Rosy Future With Black Gold

Brunei heading for oil & gas boom

Bandar Seri Begawan - There seems no way for Brunei to go now but down, down, down. Deep down, in fact.

And down, into the bowels of the earth is where the oil-rich sultanate appears heading for with all haste at the moment.

There is good reason because that is where black gold - oil and gas - the nation's lifeblood, wait to be explored.

According to the increasing number of international oil and gas people now making a beeline for the Sultanate, there could soon be an oil boom in the offing here soon.

Local businessmen welcome the prospect of injecting much needed fresh life into the current general slump.

As part of the oil activity, various seismic surveys have been conducted in various parts of the country and drilling taken place.

Optimism rides high among oil circles as millions of dollars are poured into the various concessions.

AED Oil has confirmed that the onshore exploration well, Lukut-1 in Block L, Brunei, has been successfully spudded recently.

The Lukut-1 well is part of the first phase of an exploration programme in Brunei and is the first well to be drilled for Brunei National Petroleum Company (PetroleumBRUNEI).

It is also the first well to be drilled onshore in Brunei's Block L in over 24 years.

A number of other companies have lined up to do likewise.

Economists have praised Brunei's vision and the subsequent effort to diversify its economy.

However they also suggest the need to look for oil and gas. That will ensure the country's immediate survival. Meanwhile they are encouraged that a strong economic foundation is built with the oil surplus.

But oil and gas could run out one day and disaster would loom, they warn.

However they recognise that developing other sustainable industries would take time. But the dilemma here is that there are no immediate industries to fall back on for now, economists say. Therefore producing more oil is vital for the moment.

So to be realistic, world financial bodies and others have urged intensive search for mineral fuels to build Brunei's infrastructure, to educate its people and to grow its 350,000 population to tidy things over.

With this in mind Brunei seems to have begun an oil search of unprecedented proportions, observers here noted.

Prospects seem encouraging and wells sunk offshore and on land indicate new discoveries, oil businessmen here say.

The International Monetary Fund (IMF) in a recent report on Brunei's longer term growth said that it would depend on the country's hydrocarbon reserves expansion.

The recovery of the global economy and oil prices, and success in diversifying the economic base, are other factors. -- Courtesy of Brudirect's News