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ENERGY SECTOR
Department of Energy
His Majesty Sultan Haji Hassanal
Bolkiah Mu’izzaddin Waddaulah ibni
Al-Marhum Sultan Haji Omar ‘Ali
Saifuddien Sa’adul Khairi Waddien,
Sultan and Yang Di-Pertuan of Brunei
Darussalam commanded for the
formation of the Department of
Energy at the Prime Minister’s Office
effective May 21, 2022.
With the main goal to support the
national agenda for a dynamic and
sustainable economy, the department
contributes to the development of the
country’s energy sector including oil
and gas, power sector and renewable
energy.
Petroleum Authority of
Brunei Darussalam
The Petroleum Authority of Brunei
Darussalam (PABD) Order 2019
commenced on December 31, 2019,
and allows for the formation of the
PABD, its Board andmatters connected
to the operations, functions and
duties.
The PABD is a statutory body tasked 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 the 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. The statutory body will also
serve as a technical resource to the
government on petroleum matters.
Energy Sector
Developments
The energy sector accounted for 58.8
per cent of the country’s total gross
domestic product (GDP) in 2021,
according to data released by the
Department of Economic Planning
and Statistics, Ministry of Finance
and Economy (MoFE). The oil and gas
upstream sector accounted for 49.6
per cent, whereas the downstream
sector for petroleum refining and
chemical products and power sector
contributed 8.4 per cent.
The energy sector is a key engine
for the growth and socio-economic
development of Brunei, said Minister
at the Prime Minister’s Office and
Minister of Defence II Yang Berhormat
Pehin Datu Lailaraja Major General
(Rtd) Dato Paduka Seri Haji Awang
Halbi bin Haji Mohd Yussof in a keynote
address at the opening of the ‘Energy
Security and Energy Transition: Today
and Tomorrow’ exhibition launched on
June 15, 2022 as part of the series of
events for Energy Week in conjunction
with the Brunei Mid-Year Conference
and Exhibition 2022 (Brunei MYCE
2022).
Within the ASEAN region, he also cited
a forecast from the International Energy
Agency that projects primary energy
demand to increase by more than two
thirds by 2040, while electricity demand is
projected to grow 250 per cent.
Towards this end, the Department of
Energy places great emphasis on three
main areas in meeting the country’s
energy security needs.
“The first is, managing our hydrocarbon
resource effectively and sustainably to
ensure our oil and gas sector remains
stable
and
sustainable.
Second,
diversifying the country’s energy mix by
promoting the use of renewable energy
and encouraging the efficient andprudent
use of energy.
And third, improving
energy services that are reliable and safe
to the public as well as to all sectors of the
country.”
On energy transition, he emphasised
that future growth in the energy sector
must take into account issues on
decarbonisation and the climate change
agenda. Therefore, the country is pacing
its energy sector growth with the energy
transition agenda in mind towards a low-
carbon future. Brunei committed to a net-
zero target by 2050during the 2021 United
Nations Climate Change Conference.
“In this context, natural gas, the cleanest
form of fossil fuel, stands out as the most
important transition fuel to support this
move. Brunei Darussalam as a major
liquefied natural gas (LNG) exporter will
continue to develop its gas resources and
promote natural gas in the global energy
transition,” he added.