BANDAR SERI BEGAWAN – Brunei has signed its first new production sharing agreement in more than a decade, marking a major step in efforts to revitalise the country’s upstream oil and gas sector.
The industry regulator, Petroleum Authority of Brunei Darussalam (PA), awarded production rights in offshore Block C to EnQuest EP BV Ltd, a local subsidiary of London-based EnQuest PLC.
In a statement, EnQuest said it will initially be the sole operator of Block C with the intention to form a 50/50 joint venture company with Brunei Energy Exploration Sdn Bhd. Once the joint venture is established, it will develop the Merpati, Meragi and Juragan gas fields.
“This opportunity aligns with our strategy to diversify our portfolio into gas and expand our presence in South East Asia,” said EnQuest CEO Amjad Bseisu, citing the company’s recent acquisition of assets in Malaysia and Vietnam.
“Our established presence in the region and operating expertise built up in Malaysia and the UK North Sea will be invaluable in supporting this project and future ventures in Brunei Darussalam.”
EnQuest is the second independent oil and gas company to enter Brunei’s market after Hibiscus Petroleum acquired TotalEnergies’ controlling interest in offshore Block B last year for $259 million.
The addition of EnQuest — a firm known for developing mature and late-life field operations — brings the number of active oil and gas operators in the country to four, underlining Brunei’s continued potential as a regional energy player.
“With more new players entering the industry, we will be able to foster a more competitive and dynamic oil and gas landscape,” said PA Managing Director Shamir Salahudin. “This will provide ample opportunities for creative and innovative collaboration among industry players.”
Pre-development activities for Block C are already underway, with first gas production targeted for 2029, he added.
The new agreement comes as PA’s rolls out its broader strategy to revitalise Brunei’s exploration and production activities. Earlier this year, the regulatory body launched a licensing round for offshore Blocks A and D, which have a combined area of over 4,000 square kilometers.
The oil and gas sector remains the foundation of Brunei’s economy, contributing close to half of the sultanate’s BND$20.6 billion GDP in 2024.
Last year, the sector grew by 5.5%, with daily production averaging 99,000 barrels of crude oil and 201,000 barrels of oil equivalent of natural gas.