Brunei Darussalam is set to offer two offshore blocks for competitive bidding in 2025, marking its first licensing round in more than a decade. The government aims to revitalize exploration efforts in its mature hydrocarbon sector and attract industry players to unlock new potential.
Strategically located near existing infrastructure and proven oil and gas fields, the offered blocks provide a compelling investment opportunity. Block A spans 1,728 square kilometers, while Block D covers 2,294 square kilometers, with water depths ranging from 10 to 500 meters. Key nearby fields with tie-back potential include Maharaja Lela Jamalulalam (MLJ) on Block B and Ampa, Champion, Fairley, and Iron Duke within the BSP 1 & 2 Offshore Agreement Area.
Industry consultant Welligence described the acreage as part of a prolific basin that has been producing since the 1930s and hosts the giant Seria field, which has yielded over 1 billion barrels of oil. Discovered hydrocarbons could be processed at the Brunei LNG facility in Lumut, which has a 7.2 million tonnes per annum capacity and has been operational since 1969.
Key Highlights of the Licensing Round:
- Extensive data availability: Companies will have access to existing 3D seismic and well data, providing valuable geological insights.
- Diverse petroleum systems: These include structural traps, deltaic shale formations, and Type III terrigenous plant material from the Champion and Baram deltas.
- Revised contract terms: Brunei previously adjusted its production sharing contracts to offer more competitive fiscal terms, including no ring-fencing for oil production, extended exploration terms, and a flexible profit-sharing model for deepwater developments.
The government emphasized its commitment to fostering innovation and collaboration in the sector, stating:
“Brunei Darussalam has a long-standing history as a key oil and gas producer. We invite enthusiastic and innovative players to help unlock the remaining hydrocarbon potential, leveraging proven basins and uncovering new discoveries.”
Interested bidders must register their Expressions of Interest (EOI) by 30 April 2025 via a QR code on the government’s website. Shortlisted companies will be required to purchase the bidding guideline, outlining participation requirements and access to subsurface data. The deadline for final bid submissions and prospectivity reports is 9 January 2026.
Unlike regional neighbors Malaysia and Indonesia, which conduct annual licensing rounds, Brunei’s bid rounds are infrequent. The last offshore licensing opportunity occurred more than 10 years ago, when blocks N, P, and Q were offered. Prior to that, in 2001, Brunei opened bidding for deepwater blocks J and K, along with onshore/shallow-water Block L.
With improved contract terms and promising exploration potential, Brunei’s 2025 licensing round presents a rare and valuable opportunity for international oil and gas companies to secure acreage in one of Southeast Asia’s most resource-rich hydrocarbon provinces.