Brunei plans to jump its oil production this year by 11% to 180,000 b/d, its highest level in almost a decade.
Brunei Shell, the country's main producer, is ramping up production as part of a policy of maximizing output and minimizing costs. Brunei Shell is owned equally by Royal Dutch/Shell Group and the Brunei government.
Brunei oil production is expected to average 200,000 b/d in the first half, then probably drop to 160,000 b/d in the second half because of well shut-ins for maintenance. That compares with an average 162,000 b/d in 1991.
The planned increase marks a shift from an earlier policy to maintain a conservative approach to production levels. The government introduced oil conservation measures in 1979.
Production had declined since then, slipping to 175,000 b/d in 1983. The government capped production at 150,000 b/d since 1988 but lifted the ceiling during and after the Persian Gulf crisis. Part of Brunei Shell's rationale is to boost production of associated gas to meet spiraling demand for liquefied natural gas exports.
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