East Asia: Facts and Analytics, 2026/2
DOI: 10.24412/2686-7702-2026-2-66-78
URL: PDF
Author
| Pyltsina Elena S. |
| Institute of China and Contemporary Asia of the Russian Academy of Sciences |
| ORCID: 0000-0003-1047-2573 |
| E-mail: pyltsina@iccaras.ru |
Abstract
The oil and gas sector is the backbone of the economy of Brunei, a classic rentier state in Southeast Asia, whose macroeconomic stability depends on the exploitation of its raw material base. The last two decades have been marked by a long-term decline in production due to the natural depletion of the country’s key fields. In response, the government, as part of the Wawasan Vision 2035 strategy, shifted its focus from exporting primary raw materials to developing advanced hydrocarbon processing. The flagship Hengyi Industries complex allows the sultanate to carry out price arbitrage, refining imported heavy oil and maintaining premium exports of its own light raw materials. The article analyzes the geography of foreign hydrocarbon trade and the specifics of a mixed fiscal regime combining production sharing agreements with concession instruments. The author concludes that Brunei is transitioning from the classic rentier model to an industrial economy with advanced processing. Its dependence on the import of raw materials and the stability of sea routes in the South China Sea remains a significant risk for the state. At the same time, the relatively high reserve replacement rate and the launch of new projects allow Brunei to remain the guarantor of energy security in the region.
Keywords
Brunei, ASEAN, rentier state, oil and gas industry, hydrocarbons, energy security
Support
The article was prepared within the framework of the state assignment of the Ministry of Science and Higher Education of the Russian Federation (project No. FMSF-2024-0013 “Realities and prospects for the development of ASEAN countries in the context of regional and global processes”).
Acknowledgments
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For citation
Pyltsina E.S. (2026). Sovremennoye sostoyaniye, problemy i perspektivy razvitiya neftegazovoy promyshlennosti Bruneya [The current state, problems and prospects of development of the oil and gas industry in Brunei]. Vostochnaya Aziya: fakty i analitika [East Asia: Facts and Analytics], 8 (2): 66–78. (In Russian). DOI 10.24412/2686-7702-2026-2-66-78
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Dates
| Received Date: | May 28, 2026 |
| Accepted Date: | Jun 16, 2026 |
| Publication Date: | Jul 1, 2026 |
International License: CC BY 4.0