History Of Oil and Gas Industry in Brunei

HISTORY OF OIL ANG GAS INDUSTRY IN BRUNEI by Yusri@2009

• 1899 - For the first time in Brunei history, oil well was drilled. It reached a depth of 850 feet below the Earth surface, unfortunately, this site ( found through floating oil seepage at Sungai Berkunchi)  contained no oil.

• The easiest way to find oil field location in this era was by drilling well near the oil seepages spot besides a confirmation from Geology analysis.
• It was not until 12 years after the first drilling, oil exploration was continued. British Borneo Petroleum Syndicate Limited made a Geological survey and drilled 4 wells at Bukit Puan and Belait anticline near Labi between year 1912 – 1917 but found no oil.
  
  
  
• Singapore Consortium, the Shanghai Langkat Company was awarded right to explore small area of Jerudong and made 5 explorations on oil and gas. One of the drilled well containing oil but it has no commercial value.
  
  
• Later Nederlandsche Koloniale Petroleum Maatschppij (A Dutch Company) made its first drill in Belait district
  
  
• In the earliest 1920's Shell Exploration staff in Miri began to work further afield in Brunei and drilled a total of 8 wells but all were found to be dry holes. The Shell Group Company also introduced modern survey technique in a low relief with little Geology yield results.
  
  
• British Malayan Petroleum Company, Shell subsidiary was formed in year 1922. Their first drilled well named Labi 5 found to be dried but later they found a well that produced gas at high pressure but was abandoned in 1931.
  
  
• In 1926 while Mariott and Cocaharine who worked for British Malayan Petroleum in Miri were on the journey to Swiss Geophysict in Tali they stopped at Sungei Seria and smell oil fumes. This was the first evident towards oil exploration in Seria.
  
  
• In 1928, during the oil exploration at Padang Berawa, hundreds of gas seepage containing Methane and Ethane were reported, which indicates a high possibility of oil and Gas field downward. A gravity method indicates two indistinct gravity lines and oil showing in shallow core holes.
  
  
• British Malayan Company was then began the oil exploration in Seria
  • The ineffective cable tools equipments were used to punch hole into the ground using the pulley system.
    
    
  • After few feet hole were made, the bit were pull out and replaced with bailer (open tube with valve at the bottom) to remove the smashed rock and others.
    
    
  • The technology used during that years were not so discourage, tough and slow
    
    
  • Wall collapse and salt water flooding the well from higher sands caused the operation getting harder and more challenging.
    
    
  • Since the oil drilling via cable tools equipment was so slow, the operation which started in July 1928 and witnesses by Pengiran Jaya Negara pengiran Haji Abu Bakar was extended to year 1929.
    
    
  • The oil and gas strike for the first time from a commercial valued reservoir to the well at depth of 974 feet. Later, the name Padang Berawa disappeared and replaced with name Seria.
    
    
• During these earliest year, Brunei had a very poor country development which indirectly slowing down the oil and gas industry
  
  
  • Transportation was so difficult,
    
    
    • Beach sides were used for land transportation
      • Sometimes affected by the water tidal.
      • Sometimes vehicle get bogged while using the road
        
        
    • Small rowing boat was used as a ferry to cross river but only available at certain time.
      
      
  • Wild water animals especially giant Crocodile make the place to be insecure
  • Stone were unavailable in this country and need to be imported from Niah which was a very far away.
  • Padang Berawa (Sungai Seria) is a swamp
    • Walking around this muddy area was very difficult like climbing
    • Water is a major problem here; the only available water supply was from the hidden depth roots with sour taste and red in colour.
    • The place is submerged by water during rainy season
      
      
• By 1938 – Road between Kuala Belait and Seria were developed, transportation become easy and cheaper

• February 1955 , first Seria Gas Plant was completed and ready for operation:
  • To process about 100 tons of Seria Crude oil each day.
  • To produce sufficient gasoline and fuel for country use. To deal with 3.2 million cubic metres of natural gas per day.
    
    
  • The underneath pressure became lower after oil was pumped out of the reservoir. Gas was injected to the fluid to 'reduce' its weight {specific gravity) therefore able to reach the surface.
    
    
  • 1933 – 1^st offshore well was drilled from a single well platform connected to the shore by narrow boardwalk and the next few years encourage the development of deviated drilling or directional drilling which enable the hole to be 'bent' in any desired direction.
    
    
  • 1950s : decision was made that, it is more economic and undemanding to built a platform in the offshore to extract the oil/gas underneath sea compare if it was extracted via deviated well
    
    
  • 1957 : BMPC which required a major rule in Sultanate was reform to Brunei Shell Petroleum sendirian Berhad, BSP which is share by ratio of 50:50 ; Brunei Government and Royal Dutch
    
    
• 1959 : High deviation well of angle 54⁰ was implemented succesfully,
  • 1963 : First offshore oil well – South west Ampa, this reservoirs hold more than half of Brunei Darussalam's total gas reserves and gas production from the field accounts for 60 per cent of Brunei Production in year company's total production.
    
    
    • 1972:  Brunei Liquefied Natural Gas (LNG) plant opened this year and it is the 4th largest LNG plants in the world by that time
      
      
  • 1979 – Oil production was at the peak, over 250,000 barrels per day. Since then it has been deliberately cut back to extend the life of oil reserves and improve recovery rates
    
    
  • 2001 - His Royal Highness The Crown Prince Pengiran Muda Haji Al-Muhtadee Billah officially launches the opening up of new offshore Blocks J and K (10,000 sq.km total area) and in year 2005 : PetroleumBRUNEI launches the onshore Block L and M (5,264 sq.km)
    
    
  • 2002 - The incorporated of 100% government owned Oil Exploration and Production company - Brunei National Petroleum Company Sdn Bhd (PetroleumBRUNEI)
    
    
  • Gas Chemicals Company Inc., PetroleumBRUNEI and ITOCHU Corporation) is building the country's first methanol plant which is expected to operate by 2010.
    
    
• Year 2000 estimation , Brunei reserve for oil is 1.4BBbbl and LNG at 13.8 Trillion scf
  
  
  • 2009 : BSP has spans more than 200 land and offshore structures linked by over 2,000km of pipeline, recovering oil and gas from 4,700 reservoirs and producing through 750 wells and within this 80 years, BSP has produce 6 billion barrel of oil
  • To date : A lot of advanced Technology has been brought to the country: such as fish hook wells to reach subsea reservoir, snake wells that weave several kilometers underground pockets of oil and gas and smart technologies which allows to monitor and control the operation , in real time from a comfort place in the office

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References:

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  G.C.Harper, 1975, The Discovery and Development Of The Seria Oilfield,
• OOI Keat Gin, 2004, South East Asia, A Historical Encyclopedia, From Angkor Wat to West Timor, ISBN 1-57607-770-5, Google Book, page 276-277, http://books.google.com.bn/books?id=QKgraWbb7yoC&lpg=PP1&hl=en&pg=PR4#v=onepage&q=&f=false
• Petroleum Brunei, News and Event, PB Website, retrieved on 14^th October 2009, http://www.pb.com.bn/news.asp
• Borneo Bulletin dated Apr 18^th 2009, Ultra Modern Platform For New Oil Field,Brunei FM, retrieved on 29^th October 2009, http://news.brunei.fm/2009/04/18/ultra-modern-platform-for-new-oil-field/
  

(this is my assignment report for Dr Teh - Visitng lecturer from MOE@2009)