PetroleumBrunei will assume the responsibilities of the state's regulatory body, Brunei's Oil and Gas Authority, which will be dissolved when PetroleumBrunei's new board of directors meet later this month, the company said.

PetroleumBrunei said the state-owned company will start using production-sharing contracts this year as the new model for oil and gas exploration and production in the Sultanate. Production-sharing arrangements avoid tax and royalty payments required under concession contracts, the company said.