Brunei’s oil production will grow over the next five years, supported by output maintenance works at mature assets, according to a new report from BMI research.
The country’s crude oil output contracted by more than seven percent over 2015-2016 and is set to fall by a further four percent this year, BMI said in its report. The research firm expects production to return to a gentle ‘uptrend’ from 2018 though, as stronger prices and risk appetite ‘revive interest in costly enhanced oil recovery programs at mature assets’.
BMI stated that longer-term growth will depend on whether Brunei is able to attract oil majors to invest in exploration.
“Closer cooperation with international oil companies will be crucial to achieving Brunei's aim of boosting exploration,” a BMI spokesperson said in a statement sent to Rigzone.
Brunei's offshore blocks are believed to hold signi?cant below-ground potential, although BMI highlights that much of this remains unproven and only a handful of discoveries have been made to date.