EnQuest Secures Offshore Block C in Brunei, Eyes First Gas by 2029

Brunei's Petroleum Authority (PA) has awarded a production sharing agreement (PSA) for offshore Block C to EnQuest EP BV Limited, a subsidiary of UK-based EnQuest PLC. This agreement marks the first PSA awarded in Brunei in over a decade and is viewed by the PA as a significant step towards revitalizing the nation's upstream oil and gas sector, part of a broader rejuvenation strategy initiated in late 2019.

Shamir Salahudin, Managing Director of the PA, noted that the entry of EnQuest into the market will increase the number of active operators to four, following Hibiscus EP's entry into Block B in 2024. He stated, "We envisage that with more new players entering the industry, we will be able to foster a more competitive and dynamic oil and gas landscape. This will provide ample opportunities for creative and innovative collaboration among industry players."

“We envisage that with more new players entering the industry, we will be able to foster a more competitive and dynamic oil and gas landscape.”Shamir Salahudin, Managing Director, Petroleum Authority of Brunei

The PA's rejuvenation strategy includes additional offshore blocks, with a licensing round for Blocks A and D launched earlier this year. These blocks cover over 4,000 square kilometers and are strategically located near existing infrastructure, including several key fields.

“Our capabilities have seen us develop greenfield projects in the UK ahead of time and budget, while extending field life for fields we took over in the UK and Malaysia.”Ahmed Radzif PM Mustafa Kamal, General Manager for Southeast Asia, EnQuest

EnQuest's General Manager for Southeast Asia, Ahmed Radzif PM Mustafa Kamal, emphasized the company's expertise in managing mature and late-life field operations. He remarked, "Our capabilities have seen us develop greenfield projects in the UK ahead of time and budget, while extending field life for fields we took over in the UK and Malaysia." EnQuest has also expanded its portfolio in Southeast Asia, recently acquiring the Chim Sao and Dua fields in Vietnam and securing two new exploration blocks in Indonesia.

In 2024, Brunei's oil and gas sector averaged just under 100,000 barrels of crude oil and 27.4 million cubic meters of natural gas per day, contributing significantly to the nation's economy. The sector grew by 5.5%, accounting for 46.7% of Brunei's GDP, which stands at BND 20.6 billion (approximately USD 15 billion). The downstream segment of the oil and gas industry has also seen substantial growth, more than doubling its share to over 11% of GDP since 2019, driven by projects such as Hengyi Industries' refinery and petrochemical plant and Brunei Fertilizer Industries' urea production facilities.