The discovery of oil

The Discovery Of Oil

•  The discovery of a large oil-field was at Seria in 1929.¢The independent Sultanate of Brunei Darussalam in North-West Borneo has been a leader in oilfield technology almost since the start of the oil business.
• Geology surveys were difficult to conduct in the flat coastal swamp area near Seria in the mid 1920s, so the early explorers used the relatively new-fangled method of gravity surveying.
• After a core-drilling campaign in the late 1920s, the Seria Field discovery well was drilled in 1929, flowing oil and gas from a depth of 288 metres (945 feet).

 Oil Exploration

 

• Oil exploration in Brunei began in 1899.
• It was during the oil seepage which has discovered at Ayer Berkunchi near Kampung Kasat in Brunei District.
• In 1911, the British Borneo Petroleum Syndicate Limited (BBPS) carried out a geological survey for oil researching.
• By 1918, all other companies had pulled out except for Royal Dutch Shell, which continued to search and found some accumulation of oil and gas in Labi, Belait in 1924.
• A total of 18 oil wells were explored but it was too small to be commercialised
• It was abandoned by Royal Dutch Shell and then they moved to Seria

 The discovery of oil in seria

 

The Discovery of oil can be traced to a story about two men. Which is F.F Marriot and T.G Cochrane, who unexpectedly smelled oil there and immediately informed the geophysicist. It took place in the year late 1926. It made the growth of Seria town.

 

BMPC’s Administration And Welfare Programmes

  

• The British Malayan Petroleum Company (BMPC) Was formed on 20 July 1922.
• It belonged to the Royal Dutch Shell.
• The BMPC had to pay oil royalties to the government and they also had to provide all the services in Seria and the Belait District necessary for its development.

• The BMPC made provision for public and welfare services such as law and order, medical facilities, education, recreation, communication and others 

Development of oil industry

 

• The oil industry was been rebuilt after the Japanese Occupation

• In 1955, the $14 million gas plant was completed

• In 1954, survey & exploration work both on land & offshore were carried out by Brunei Shell Petroleum Company (BSPC)
• By 1956, oil production in Seria increased.
•  In 1963, a major oil & gas field was discovered at discovery at South West Ampa. With this discovery, Liquefied Natural Gas (LNG) became important
•  The development of oil & gas fields has actively since 1964 & oil production has steadily increased.

 The effects

• The discovery of oil had made Brunei become the wealthiest countries. 

• It contributed to state the revenue with a steady source of income

• It also provided the means for the country’s debts to be paid off by in 1936.

• Enabled the Brunei Government to further social and welfare services

• The revenue also lessened the impact of the Great Depression on Brunei 

 

DoneBy-Mohammad.Muinnuddin@Masiang Bin Mohd.Taip