UK's Upland Signs MoU on Brunei Exploration
London-listed Upland Resources has signed a memorandum of understanding with Bruneian oil and gas industry services provider Viddacom on joint evaluation of oil and gas opportunities in Brunei, it said on August 27.
The pair will form a 60:40 joint venture led by Upland to assess and pursue licence interests in the country. Under the agreement, they will work exclusively together for up to five years. Upland will bring its technical subsurface expertise while Viddacom will leverage its regional oil and gas logistics operations, and its contacts in the petroleum sector.
Upland has upstream assets in the UK and Tunisia, and is looking to build up a portfolio of upstream projects in proven, mature basins in southeast Asia and north Africa. Viddacom supplies chemicals for drilling, drilling rental tools, casing accessories and wellhead and wellhead lubricants. Its customers include Brunei Shell, Brunei, Petronas and Total.
Brunei holds 1.1bn barrels of proven oil equivalent reserves, according to Upland. Amid declining production rates, the government is eager to attract investment to recover more oil and gas from licence areas previously overlooked as marginal, the company said.