Brunei inks MoU with Far East Energy to asses coal deposits
Friday, September 14, 2007
It is reported that in an effort to explore potential energy resources in the Sultanate of Brunei, a MoU was recently signed between the government of Brunei and the Far East Energy Pty Ltd from Australia on August 25th 2007 for the assessment of coal deposits in Brunei.
Mr Hj Zolkiflee Hj Abd Karim the Acting Director of the Petroleum Unit signed the MoU on behalf of the Brunei government while Miss Julie Hall chairman signed on behalf of Far East Energy Pty Ltd.
Mr Hj Zolkiflee in his welcoming speech said that the MoU is part of Petroleum Unit's continuing efforts to investigate potential energy resources other than oil and gas in the country. He stated that even though coal is widespread and of reasonable quality in certain places, its true potential has not been subjected to systematic exploration utilizing the current acceptable technology. Hence, to date it has not been possible to map and determine any potentially commercial targets for exploitation. The assessment would initially take a regional approach and thereafter target specific areas for more extensive exploration work under prospecting licenses.
Coal was reportedly found in the country as early as 1837. Coal deposits are known to exist in several areas in the country such as Kianggeh and the Mentiri valley in the Brunei-Mnara district, Labu syncline in Temburong, as well as in some parts of the Belait District. Between 1888 and 1924, Brunei produced about 0.6 million tonnes of coal, most of it coming from the Brooketown Colliery in Muara and some from Buang Tawar area at Pulau Berambangan. Production, however, ceased by 1924 due to the world economic recession and fall in coal prices.
As per report Far East Energy Pty Ltd has extensive experience, technical and managerial expertise in coal exploration, mining and in mineral financing.
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