km Petroleum Unit Global LNG Summit 17 –18 December 2003 BRUNEI DARUSSALAM Washington D.CSlide 1 GAS INDUSTRY DEVELOPMENT IN BRUNEI DARUSSALAM GAS INDUSTRY.

kmkm

Petroleum Unit Global LNG Summit 17 –18 December 2003

BRUNEI DARUSSALAM Washington D.CSlide 1

GAS

INDUSTRY DEVELOPMENT IN

BRUNEI DARUSSALAM

GAS

INDUSTRY DEVELOPMENT IN

BRUNEI DARUSSALAM

PRESENTATION OUTLINEGAS INDUSTRY DEVELOPMENT IN BRUNEI DARUSSALAM

BRUNEI DARUSSALAM – ABODE OF PEACE

OIL & GAS INDUSTRY CONTRIBUTIONS

KEY PLAYERS IN GAS INDUSTRY

KEY MILESTONES OF GAS INDUSTRY

NATURAL GAS PRODUCTION

NATURAL GAS DEMAND

BRUNEI LNG

GAS INDUSTRY ASPIRATION

OFFERED ACRAEGE

Petroleum Unit Global LNG Summit 17 –18 December 2003

BRUNEI DARUSSALAM Washington D.CSlide 2

BRUNEI DARUSSALAM – ABODE OF PEACE

• Politically & Economically Stable.

• Well-positioned and has proximity to existing & potential Asia-Pacific markets.

• More than 70 years experience in upstream E&P activities.

• More than 30 years in LNG Business.

BRUNEIDARUSSALAM

Petroleum Unit Global LNG Summit 17 –18 December 2003

BRUNEI DARUSSALAM Washington D.CSlide 3

OIL & GAS INDUSTRY CONTRIBUTIONS

• Country revenue

• Direct employment of 3,500 staffs.

• Indirect employment of large part of workforce.

• Local business development.

• Technology development.

• Promotion of technical and HSEQ Standards.

• Promotion of Bruneian interest.

Petroleum Unit Global LNG Summit 17 –18 December 2003

BRUNEI DARUSSALAM Washington D.CSlide 4

KEY PLAYERS IN BRUNEI GAS INDUSTRY

§ Brunei Shell Petroleum (BSP)

§ Block B Joint Venture (BBJV)

§ Brunei LNG (BLNG)

§ Brunei Shell Tankers (BST)

§ Brunei Gas Carrier (BGC)

Petroleum Unit Global LNG Summit 17 –18 December 2003

BRUNEI DARUSSALAM Washington D.CSlide 5

AmpAmp

Muara PortMuara Port

Maharaja LelaMaharaja Lela

FairleyFairleyGannetGannetMagpieMagpie

TaliTali

ChampionChampion

RasauRasau

Offshore facilitiesOffshore facilities

Onshore facilitiesOnshore facilities

Power facilitiesPower facilities

Natural Gas pipelineNatural Gas pipeline

Crude Oil or Condensate

pipeline

Crude Oil or Condensate

pipeline

Terminal( SCOT )Terminal( SCOT )SeriaSeria

BANDAR SERI BEGAWAN

BANDAR SERI BEGAWAN

LumutLumut

GadongBerakasJerudong

GadongBerakasJerudong

Refinery10,000

bpd

Refinery10,000

bpd

BLNGBLNG

OPPOPP

Ampa Fairley Rationalization

Project

Ampa Fairley Rationalization

ProjectIron DukeIron Duke

LumutLumutCPPCPP

PRESENT DAY BRUNEI HC INFRASTRUCTURE

Petroleum Unit Global LNG Summit 17 –18 December 2003

BRUNEI DARUSSALAM Washington D.CSlide 6

EXISTING CONCESSIONS

• Offshore Concessions 8,618 sq km

- Block A & CD (Shell Deepwater Borneo Ltd., NewCo)

- Block B (TotalFinaElf, Shell Deepwater Borneo ltd., NewCo)

- Others (BSP)

• Land concession 2,624 sq km

- BSP

Petroleum Unit Global LNG Summit 17 –18 December 2003

BRUNEI DARUSSALAM Washington D.CSlide 1

NATURAL GAS PRODUCTION

0

5

10

15

20

25

30

35

40

Millio

n Cu

bic M

etre

s/Day

E +06 m3/ d 3. 2 3. 5 5. 4 7 8. 7 10 9. 2 12 20 22 26 30 30 29 26 27 25 24 25 25 26 27 27 28 31 30 30 31 32 32 36

63 64 66 67 68 70 71 72 74 75 76 78 79 80 82 83 85 86 87 89 90 91 93 94 95 97 98 99 01 02 03

2002 - Highest in recorded production history

1999 – Block B Joint Venture start producing & become 2nd gas producer

Petroleum Unit Global LNG Summit 17 –18 December 2003

BRUNEI DARUSSALAM Washington D.CSlide 8

e

r

KEY MILESTONES OF GAS INDUSTRY IN BRUNEI

Seria Field

Brunei LNG Ltd/Cold Gas Trading

19291929

19691969

19721972

19931993

1st LNG cargo

19971997

Japan 1st Contract Extension

19981998

19991999

19861986Brunei Shell Tankers

Long-term contract with KOGAS

Brunei Gas Carrier

BBJV

20022002ABADI - 8th LNG Tanker

1972 – 1st LNG cargo1980 – 1000th LNG cargo1987 – 2000th LNG cargo1993 – 3000th LNG cargo1999 – 4000th LNG cargo

Petroleum Unit Global LNG Summit 17 –18 December 2003

BRUNEI DARUSSALAM Washington D.CSlide 9

GAS DEMAND - 2002

Total Gas Demand = 0.4173 TCF

§ LNG – 0.3533 TCF, 85%

§ Power generation – 0.0396 TCF, 9%

§ Petroleum operator own use – 0.0244 TCF, 6%

Petroleum Unit Global LNG Summit 17 –18 December 2003

BRUNEI DARUSSALAM Washington D.CSlide 10

FUTURE GAS DEMAND

• LNG.

• Power generation.

• Petroleum operator own use.

• Downstream industry.

• LNG plant extension opportunity.

• LNG plant (6th train) expansion opportunity.

Petroleum Unit Global LNG Summit 17 –18 December 2003

BRUNEI DARUSSALAM Washington D.CSlide 11

Inland Demand

0

1

2

3

4

5

6

7

8

9

10

Mln

m3/

d

Notional Ind Proj

Tutong PS add.

Berakas PS

DES

COGEN

Historical Data

Power Generation

INLAND GAS DEMAND

2006 – Downstream projects start

Petroleum Unit Global LNG Summit 17 –18 December 2003

BRUNEI DARUSSALAM Washington D.CSlide 12

EXISTING LNG PLANT – BRUNEI LNG

• First production in 1972.

• Delivered more than 4,000 B Class Cargoes.

• Production capacity 7.2 MTPA

• Five trains with each capacity of processing 5.3 million m3/day of gas.

• Three storage tanks with total capacity of 176,000 m3. • Long term contract with Japan (6.01 MTPA) and Korea (0.7 MTPA).

• Spot sales to Europe and United States.Petroleum Unit Global LNG Summit 17 –18 December 2003

BRUNEI DARUSSALAM Washington D.CSlide 13

BRUNEI LNG EXPORT

-30

20

70

120

170

220

Num

ber o

f Car

goes

('B C

lass

' Equ

ival

ent)

B C l as s E qui val ent C ar go 1 31 77 106 147 164 159 166 167 159 155 157 160 154 153 156 160 159 159 158 159 165 173 186 185 184 176 186 194 200 204 56

72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03

2002 - Highest in recorded

export history

1993 – 1st contract extension

1997 - KOGAS

Petroleum Unit Global LNG Summit 17 –18 December 2003

BRUNEI DARUSSALAM Washington D.CSlide 14

BRUNEI LNG - 2002

2001 – Record: first time 200.3 cargoes delivered

2002 – New Record: 203.5 cargoes delivered

Year 2002 Achievement Deliverable Through:

� More reliable gas supply from gas producers

� Continuous growth of LNG deliveries over the last 4 years

� New outlets: 2 spot cargoes to Spain; 1 spot cargo to U.S.

� No shipping disruptions

Petroleum Unit Global LNG Summit 17 –18 December 2003

BRUNEI DARUSSALAM Washington D.CSlide 15

BRUNEI LNG – 2003 OUTLOOK

Absolute top production compares with previous years.

Stretching gas suppliers; maximum delivery.

Firm plans for 207+ B Class Cargoes.

Petroleum Unit Global LNG Summit 17 –18 December 2003

BRUNEI DARUSSALAM Washington D.CSlide 16

BRUNEI GAS INDUSTRY GROWTH ASPIRATION

BLNG PLANT EXTENSION = Assets Rejuvenation Plan (ARP)

� Maintain current 7.2 million ton / annum capacity

� Gas require: ~ 7.5 TCF

BLNG PLANT EXPANSION – 6th Train

� 6th Train: world scale capacity: 4 million ton per annum

� First cargo delivery: after 2010

� Gas require: ~ 4.2 TCF

Petroleum Unit Global LNG Summit 17 –18 December 2003

BRUNEI DARUSSALAM Washington D.CSlide 17

203320132006 202620200

200

300

LN

G B

-Car

go

/a

EXPANSION4.2 TCF

EXTENSION7.5 TCF

Existing Contracts

210~215

330

BLNG PLANT EXTENSION & EXPANSION

Petroleum Unit Global LNG Summit 17 –18 December 2003

BRUNEI DARUSSALAM Washington D.CSlide 18

RECENT DEEPWATER ACREAGE

…the next deepwater activityand opportunities in Brunei

Petroleum Unit Global LNG Summit 17 –18 December 2003

BRUNEI DARUSSALAM Washington D.CSlide 19

BLOCK KShell (50%)Conoco(25%) Mitsubishi Corp. (25%)

BLOCK JTotalFinaElf (60%)

BHP Billiton (25%)

Amerada Hess (15%)

OUTCOME OF BIDDING ROUND

Petroleum Unit Global LNG Summit 17 –18 December 2003

BRUNEI DARUSSALAM Washington D.CSlide 20

kmkm

GAS INDUSTRY DEVELOPMENT IN BRUNEI DARUSSALAM

THANK YOU

FOR YOUR ATTENTION

THANK YOU

FOR YOUR ATTENTION

Petroleum Unit Global LNG Summit 17 –13 December 2003

BRUNEI DARUSSALAM Washington D.CSlide 1

Petroleum Unit Global LNG Summit 17 –18 December 2003

BRUNEI DARUSSALAM Washington D.CSlide 21