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THE ENERGY SECTOR
Ministry of Energy
As the country works towards achieving Brunei
Vision 2035, each sector in Brunei Darussalam
has a significant role to fulfil. This includes
the energy sector, particularly the oil and gas
industry, which has contributed tremendously to
the country’s growth over the past nine decades.
Effective November 19, 2019, the Ministry of
Energy, Manpower and Industry was restructured
and renamed Ministry of Energy to focus on
energy matters.
The ministry’s core roles include: responsibility
for prudent exploitation of hydrocarbon
resources; grow and diversify downstream
industry; strengthen sustainable energy efforts
through the implementation of renewable,
alternative and energy efficiency initiatives; and
supply of reliable, safe, efficient and affordable
energy to the nation.
Petroleum Authority of Brunei
Darussalam
The Petroleum Authority of Brunei Darussalam
(PABD) Order 2019 was introduced on December
31, 2019 to allow for the formation of PABD, its
board and matters connected to the operations,
functions and duties.
PABD is a statutory body tasked by the Ministry
of Energy to undertake regulation and monitoring
of operations and infrastructure in the upstream,
midstream and downstream oil and gas sector,
and act as custodian of petroleum data in Brunei
Darussalam.
The establishment of PABD serves as an
important milestone in the development of the
oil and gas sector in Brunei by contributing to
a more conducive business environment for
the industry. The consolidation of operational
regulatory functions of the oil and gas sector
into a single entity is intended to streamline
operations and provide clarity to businesses and
potential investors for growth and diversification
of the oil and gas industry. PABD also serves
as a technical resource for the government on
petroleum matters.
Energy sector developments
Since the discovery of oil in 1929, the oil and
gas industry has grown to become the largest
and most mature economic sector in Brunei
Darussalam.
In 2019, the oil and gas sector accounted for
nearly 60 per cent of the country’s gross domestic
product (GDP) and 90 per cent of exports. The
Ministry of Energy has played a pivotal role in
developing oil and gas as the country’s main
source of revenue. In recent years, the oil
and gas industry has seen major milestones
particularly in the expansion and diversification
of its downstream sector.
The most significant downstream project
development in recent times is the full
commercial operation of the Pulau Muara Besar
(PMB) Refinery and Petrochemical Plant in
November 2019.
The PMB Refinery and Petrochemical Plant is
the largest foreign direct investment project in
Brunei Darussalam, with the capacity to refine
175,000 barrels per day of crude oil per year and
generate eight million tonnes of petroleum and
petrochemical products per year.
On May 15, 2020, Hengyi Industries Sdn Bhd, as
the operator of the refinery and petrochemical
plant, started its first supply of petroleum
products for the domestic market as a part of its
commercial agreement signed with Brunei Shell
Marketing Company Sdn Bhd (BSM).