APEC EWG 40 BRUNEI DARUSSALAM Short-Term Energy Security Initiative Measures 1 km Brunei Darussalam In Brief 1. 2. 3. 4. 5. 6. 7. 8. Total Land Area: 5769 square kilometers Population: Around 390,000. Population growth averages at 2.2% Main Domestic Transportation: Land vehicles/Boats Person per private car: 2.09 Refinery No: 1 Production: Around 13,000 Bpd Electricity Generation: Mainly using gas. Solar Energy Project for R&D 2 OIL AND GAS: ENERGY RESOURCES OF BRUNEI DARUSSALAM: 2009 1. Petroleum Mining Agreements: Concessions and Production Sharing Agreements 2. Currently two producers: Brunei Shell Petroleum and Block B Joint Venture 3. PSC Holders: Exploration Stage both offshore/onshore 4. Brunei crude oil production : Around 170,000 barrels/day 5. Brunei natural gas production : 33 million m3/day 5. Oil and gas are the main energy resources and income of Brunei Darussalam. • Oil and gas sector accounts for 60 percent of Brunei’s Gross Domestic Product (GDP) and 90 percent of its revenue. 3 OIL AND GAS: ENERGY RESOURCES OF BRUNEI DARUSSALAM: 2009 6. Crude oil usage • 7. Natural Gas usage • 8. LNG (82%); Power Generation (10%); Methanol (<1%) & Operators own-used (7%) Source of petroleum products supply • 9. Export : 90%; Refinery’s Feedstock: 10% Local (84%) & non-local (16%) Petroleum usage by sector • Transportation (78.1%); Residential & Commercial (4.0%), Industry (16.4%), Agriculture (0.01%), Power Generation (1.4%). 4 OIL AND GAS: SOME OF THE CHALLENGES 1. 2. 3. 4. 5. No More Easy Oil and Gas High Number of Matured portfolios Prospects in Deeper and Further Horizons Challenging structures – HPHT Reservoirs Refinery:a. b. c. d. 6. Operational limitation Competing product requirements Importation of products Storage capacity for petroleum products Power Generation:a. b. c. Fast increase in demand High dependency on gas as fuel Plant efficiency vs. Combined Cycle 5 ENERGY SECURITY: SHORT TERM INITIATIVES A. Petroleum Products 1. Country Wide Stock (Strategic Stock) • Directed oil company to stock petroleum products for domestic requirement on operational basis • Expanding petroleum products storage capacity 2. Supply Side Management • Locally Source Establish a robust Supply & Operations Plan but more flexible lead-time • Non-locally Source (Importation of products) Secure ‘firm’ contract with reliable supplier/s and establish alternative sources, for contingency 3. Demand Side Management • Directives on Sales of Petroleum Products - 5 directives issued to slow down demand growth • Monthly update on Demand & Production Plan 6 ENERGY SECURITY: SHORT TERM INITIATIVES B. Gas-fuelled Power Generations 1. Continue to develop energy related infrastructure to ensure the efficiency and reliability. 2. New generating facilities are designed with higher thermal. new combined cycle power plant - improve the power generation efficiency at least by 30% from where it is today. 7 ENERGY SECURITY: LONG TERM INITIATIVES 1. National Oil Stockpiling 2. Reduction of National Energy Intensity • national quantitative target on the reduction of national energy intensity at 25 percent by 2030 with 2005 as the base year. • To be in-line with the pledges by APEC leaders in the 2007 Sydney Declaration. 3. Expanding exploration and developing new oil and gas fields 4. Maximize economic utilization of existing facilities such as expanding & upgrading existing Refinery or building a new large scale Refinery 5. Leveraging energy technologies 6. Ensuring a secured and reliable power supply to meet the growing demand (locally and non-locally source (power imports)) 7. Continuous efforts in improving in energy efficiency in power generations 8. Developing new and renewable sources of energy. 9. Fostering regional/international energy cooperation 8