Brunei Shell Petroleum Company Sdn Bhd (BSP) is an enduring partnership between the govern- ment of 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 and Royal Dutch Shell plc that reaches back almost 90 years.
BSP explores and produces oil and gas from onshore and offshore fields for both domestic consumption and export to international markets. It is a dynamic company supported by a talented workforce and is home to a number of technological world firsts, such as the design and use of fishhook wells and snake wells. To date, the company has produced more than seven billion barrels of oil equivalent. BSP puts safety and environmental protection at the heart of everything it does and contributes back to the community through social investment programmes aligned with the country’s development plans and Brunei Vision 2035.
Oil was first discovered in Brunei in 1910, with the first commercial oil production in country starting in 1929 from the onshore Seria field. This marked the start of BSP’s extensive operations in the country and gave birth to Brunei’s now renowned oil and gas industry.
BSP is among the largest energy companies in Asia, exploring, developing and producing crude oil and natural gas from offshore and onshore assets. They supply around 310,000 barrels of oil and gas equiv- alent (crude oil and natural gas combined) every day to countries such as Australia, Indonesia, Japan and Korea.
More than 200 offshore structures are linked by over 5,000 kilometres of pipelines which produce oil and gas from more than 4,500 individual reser- voirs produced by more than 800 wells. BSP’s vast production capabilities contribute to around 90 per cent of Brunei’s oil and gas revenues, over half of the country’s Gross Domestic Product (GDP) and 90 per cent of total export earnings.
There are also 4,100 employees working directly for BSP, of which nearly 90 per cent are Bruneian, and an extended workforce of more than 20,000 busi- ness partners.
BSP is working on innovatively growing its portfolio, with many development projects being implemented to meet the growing regional oil and gas demand.
BSP uses technology and innovation to continue to unlock more value for Brunei both now and in the future. BSP is a recognised global centre of excellence in the use of “Smart Well/Field” oil and gas technologies in Shell, and across the industry as it pioneered “Smart” technologies which are now standard in all BSP operations.
One notable milestone in the oil and gas sector was an exciting new exploration success achieved by BSP. On April 13, 2017, it announced its first significant onshore discov- ery in 37 years with its Layang-Layang Well in the Lumut area.
The Layang-Layang discovery is the first of its kind as it confirms a new geological concept called a Shale diapir trap which was interpreted from seismic data and Brunei field outcrop studies. A Shale diapir is a large cavity injected with Shale under high subsurface pressure, and had never previously been considered as a valid hydrocar- bon trapping mechanism.
According to a statement from BSP, what makes this dis- covery particularly remarkable is the application of new, advanced seismic processing technology to existing older data. This new technology enabled the successful geolog- ical thinking and safe drilling of the Layang-Layang Well.
“What is even more meaningful is that this is a well in the Seria Field – which is Brunei’s first and oldest oil field, discovered in 1929. Even though it is more than 80 years old, it is a gift that keeps on giving. Seria was the birth of the oil and gas industry in Brunei and will continue fuel- ling Brunei’s future for generations to come,” reads the statement.
Further exploration is expected to lead to more onshore oil and gas developments in the future as well as open up more opportunities for Brunei in the downstream sector.
Safety is the number one priority at BSP, making sure that everyone who works for BSP goes home safely, back to their loved ones, every single day. As of November 29, 2017, BSP celebrated one year with no Loss Time Injury (LTI) which means no fatalities or permanent disabilities or time lost from work was recorded for 365 days and that everyone working for BSP did indeed go home safely. The focus on safety is intense with employees having daily dialogue within their teams on recognising hazards and how to safely carry out their work.
One of BSP’s top strategic priorities is People and Country; this means creating jobs for the nation, developing people inside and outside of BSP and helping to grow Bruneian businesses to become internationally competitive in sup- port of realising Brunei Vision 2035.
In BSP, the participation of local business partners in more complex activities, in addition to the traditional basic ser- vices, is growing. For example, in the marine sphere, the majority of the business is executed by local companies and in BSP’s growing Decommissioning and Restoration activity a locally owned Flux rig is delivering the onshore well aban- donment programme.
As part of BSP’s 10 flagship projects already implemented, some of BSP’s foreign business partners have moved business into Brunei with BSP’s support. Last year, the Oil Country Tubular Goods (OCTG) Pipes Threading Plant with Nippon Steel & Sumitomo Metal Corporation opened, cre- ating jobs and development opportunities for Bruneians.
Furthermore, over 5,100 additional jobs have also been cre- ated through third party contractors. BSP works with service companies and suppliers with a workforce ranging from 19,000 – 20,000. BSP has also awarded 60 Small Medium Enterprises (SMEs) their first contract in the last three years further strengthening their support to local businesses.
Another notable event took place in May 2017, where leaders from 10 major oil and gas operators in Brunei signed a pact to demonstrate their commit- ment to uphold integrity in business.
The Energy Industry Business Integrity Pact con- sists of 10 essential principles the companies shall incorporate to ensure appropriate internal controls are in place to assess, prevent, detect and monitor integrity and compliance risks in the course of their operations. By agreeing to this pact, the industry is conveying its zero tolerance message that any com- pany lacking integrity and transparency will not have the opportunity to do business with any of the oil and gas operators in Brunei.
The event saw established oil and gas companies in the country signing the pact, including Brunei Shell Petroleum Co Sdn Bhd (BSP), Brunei LNG Sdn Bhd, Brunei Shell Marketing Sdn Bhd, Brunei Gas Carriers Sdn Bhd, Hengyi Industries Sdn Bhd, Shell Deepwater Borneo, Brunei National Petroleum Co Sdn Bhd (PetroleumBRUNEI), Brunei Methanol Company Sdn Bhd, Petronas Carigali Brunei Ltd and Total E&P Borneo BV.
The companies pledged and committed to the fol- lowing 10 summarised principles:
1. Prohibition of bribery and facilitation payments in business activities;
2. Code of conduct in place and principles dissem- inated to staff and contractors;
3. Consistent consequence management for viola- tions of the code and principles;
4. Visible training programmes and communica- tion in place;
5. Disclosure and avoidance of conflicts of interest;
6. Avoidance of gifts and hospitality which can lead to perceived influence or conflicts;
7. Governance and internal controls/policies in place;
8. Raising concerns, whistle-blowing mechanisms and speaking up free of retaliation; investiga- tions conducted impartially, fairly and in timely fashion;
9. Full collaboration with the ACB;
10. Refraining from doing business with those who demonstrate poor integrity and ethical practices.
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