Industry is almost entirely dependent on oil and natural gas production, and there has been little progress in the government's efforts at diversification. In 2001, Brunei's oil production accounted for only .3% of world total, but it is the third-largest oil producer in Southeast Asia, after Indonesia and Malaysia. Revenues from the petroleum sector account for almost 50% of GDP, although in 2002, overseas investment earnings for the first time exceeded these revenues. Lumut, Brunei has one of the world's largest liquefied natural (LNG) gas plants, operated by Brunei Shell Petroleum (BSP) a 50–50 joint venture partnership between the government and Royal Dutch/Shell. Japan as the major customer under a 20-year contracts, the first in 1972, and the second renewed in 1993. Brunei is the fourth-largest LNG producer in the world, and the third largest producer of natural gas in Southeast Asia. Brunei's second-largest industry, construction, was given a boost in 2001 when the Global Everygreen Corporation, revealed as a government-owned enterprise, announced that it was taking over a number of the projects of the bankrupt Amedeo Development Corporation, such as the Empire Hotel and Country Club, the Berakus Power Station, the DST Corporate Tower, and the Jerudong Marina, with the intention of completing some of them. The construction industry was also stimulated by $1 billion made available by the government for projects under its 8th National Development Plan, announced in late 2001 and early 2002. Local cement production was estimated to have increased 8.1% over the year before in the third quarter of 2002. Other domestic industrial sectors showed little progress, however. In the manufacturing and processing sector, production of garments, were estimated to have declined 4.3% in 2002.
Production of industrial goods included, in 2002, an estimated 10.8 million cu m (380 million cu ft) of LNG and, in 2001, 173,000 barrels of oil per day and 10.3 million tons oil equivalent of natural gas. The small manufacturing sector includes production for the construction sector, sawmills and brick and tile factories. Government support of small-scale projects in food and beverage processing, textiles, furniture making and specialist optics has had limited results. Small commercial enterprise is still carried on mainly by Chinese entrepreneurs. In 1976, the government set up the Economic Development Board to assist new industries by granting tax and import exemptions, and recent efforts are aimed at increasing the employment of the local Malay population in the private sector.
The industrial production growth rate was listed as 4% in 1997.