Shell trying to boost production, longevity<\/p>\n
BANDAR SERI BEGAWAN, Brunei (AP): Shell is using new
\ntechnology in a bid to squeeze more oil from its Brunei fields,
\nand to extend their production life, Brunei Shell Petroleum Co.
\nmanaging director John Darley said Saturday.<\/p>\n
\"We're talking about modest potential for increases,\" Darley
\ntold The Associated Press. \"We're talking in terms of 5 to 10
\npercent, at the moment, in the current year.\"<\/p>\n
This would mean an increase from a current average production
\nlevel of roughly 160,000 barrels per day to a range of 170-
\n180,000, Darley said.<\/p>\n
But he stressed that extending the life of current oil fields
\nwas the crucial concern.<\/p>\n
\"What is important in Brunei is the long-term stability of the
\nproduction levels and the long-term stability of the industry.
\nAnd therefore we really look for longevity,\" he said.<\/p>\n
\"Some of these fields are on decline. What we are looking at
\nis making sure that we reverse the decline and add new reserves
\nto that process,\" he added.<\/p>\n
Oil and natural gas, produced mainly by joint ventures between
\nShell and Brunei's monarchy government, are the Southeast Asian
\ntiny country's lifeblood.<\/p>\n
The industry is a major employer in Brunei. It accounts for
\nmore than 90 percent of exports and half of gross national
\nproduct - the total of all goods and services produced in the
\ncountry.<\/p>\n
Oil and gas have made the quiet sultanate one of the world's
\nrichest countries. But Asia's recent economic crisis, coupled
\nwith the collapse of Brunei's largest private company last year,
\nhit the economy hard.<\/p>\n
Brunei Shell plans to use sophisticated seismic tests to find
\noil, and new horizontal drilling techniques to find reserves that
\nwere once unreachable, Darley said.<\/p>\n
Brunei may also push its offshore drilling operations into
\nmuch deeper water farther off its coast.<\/p>\n
\"There is talk about licensing the deeper offshore areas,\"
\nDarley said.<\/p>\n
Most of Brunei Shell's current offshore wells are in 10 meters
\nto 30 meters (33 feet to 99 feet) of water up to 40 kilometers
\n(24 miles) offshore. New deep-water wells could be as far as 100
\nkilometers (60 miles) offshore in 1,000 meters (3,300 feet) of
\nwater, Darley said.<\/p>\n
Though the government has asked Brunei Shell to help study the
\nproject, others would probably be able to bid for it, he added.<\/p>\n
\"I think the government is quite rightly looking to encourage
\nmore players in the industry,\" Darley said.<\/p>\n
French company Elf Aquitaine and New Zealand's Fletcher Energy
\nare relative newcomers to Brunei's oil and gas industry,
\ndominated by Shell for most of this century.<\/p>\n
Brunei has long been dogged by speculation that its oil
\nreserves could run dry within decades. But improving technology
\ncould keep the industry a cornerstone of the economy \"well into
\nthe next millennium,\" Darley said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/shell-trying-to-boost-production-longevity-1447893297",
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