Reuters: Shell strikes oil again in Brunei's Seria field: “Search for deepwater oil has been halted since 2003 after a territorial dispute with Malaysia.”: Posted 20 December 2005

SINGAPORE (Reuters) - Royal Dutch/Shell (RDSb.L: Quote, Profile, Research) (RDSa.L: Quote, Profile, Research) has struck oil in Brunei's Seria field and plans to drill five more wells there in the next two years, the oil major's local joint venture said on Monday.

Brunei Shell Petroleum Co, a 50-50 joint venture between the Brunei government and the Anglo-Dutch major, said the find was its fifth successive discovery in the Seria Shallow Marine North Flank area.

"More than 100 metres of net oil sands were found. The well will be completed in 2006, to provide early production from the Seria North Flank area," the company said in a statement.

The Seria field produces 25,000 barrels per day (bpd), it said. Brunei Shell did not give an estimate on reserves from the new discovery.

Brunei's crude reserves are estimated at around 1.1 billion barrels, according to BP's annual statistical review. Production peaked over 240,000 bpd in 1979 and has fallen to around 200,000 bpd as Brunei has cut output to extend the life of fields.

Search for deepwater oil has been halted since 2003 after a territorial dispute with Malaysia. 

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