BANDAR SERI BEGAWAN, April 13 (Xinhua) -- Brunei has achieved a new success in oil exploration as it made its first significant onshore discovery in 37 years with its Layang-Layang Well in the Lumut area, Brunei's Energy and Industry Department at the Prime Minister's Office (EIDPMO) said on Thursday.
The Layang-Layang oil and gas 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. The achievement was announced in a joint press statement by Brunei Shell Petroleum Company Sdn Bhd (BSP) and EIDPMO.
According to the statement, what makes this discovery particularly remarkable is the application of new, advanced seismic processing technology to existing older data. This new technology enabled the successful geological thinking and safe drilling of the Layang-Layang Well.
"This is a very exciting achievement as it is a clear demonstration of how new technology and cutting-edge techniques in the interpretation of data opens new opportunities," BSP Managing Director Ceri Powell told Xinhua.
The exact volumes of the well are yet to be evaluated but initial calculations indicate that the target of 18 Million Barrels of Oil Equivalent has likely been exceeded. The potential revenues are equivalent to approximately 15 percent of the country's 4 billion U.S. dollars annual budget in 2016.
"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 fuelling Brunei's future for generations to come," said the statement.
Mohammad Yasmin, the Minister of Energy and Industry at the Prime Minister's Office also highlighted, "While the government will continue to press efforts to diversify the economy in other sectors, the oil and gas sector will remain a strong pillar of our economy for years to come, where the government will continue to encourage oil and gas operators in Brunei to produce oil and gas in a sustainable and effective manner."
The Layang-Layang Well was drilled safely at an angle under Lumut area to a depth of 4,319 meter, which is taller than Mount Kinabalu (4,095 meters), the tallest mountain of neighboring Malaysia. According to 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. Enditem
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