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Can the newly created Brunei National Petroleum Co. (BNPC) succeed as Brunei's national oil champion, following in the footsteps of established Asian heavyweights like Malaysia's Petronas or Thailand's PTT? Or will it go the way of Brunei's ill-fated Amedeo Development Corp., the runaway train of a construction company started by the Sultan of Brunei's younger brother, Prince Jefri, that collapsed in 1998 with debts of $14.5 billion?
One company that will be watching closely is Royal Dutch/Shell, the Anglo-Dutch giant that has acted as the state's proxy national oil firm since 1931. Brunei Shell Petroleum, the 50-50 joint venture between the Brunei government and Shell, is rumored to have run the industry as its own fiefdom while maintaining a haughty distance from the rest of the Shell group -- something that was tolerated simply because Brunei Shell was wildly profitable.
But since its establishment in November, BNPC has taken over the production role held by Brunei Shell, and become the country's...