The residents of these two villages consist of various races and tribes such as Belait, Kedayan, Dusun, Iban and Chinese and adhere to various religions including Islam, Christianity, Buddhism and others.

Six firms, including Royal Dutch Shell, which began operations in 1913 following the discovery of the Miri field in Sarawak, Malaysia, were involved in the oil search.

In 1924, Royal Dutch Shell continued to investigate and discovered some deposit of oil and gas in Labi, all other businesses had left by 1918.

A total of 18 oil wells were investigated during that time, but the discovery was too tiny to be exploited, so Royal Dutch Shell abandoned it and the area was then turned into a settlement.

In the past, the area was a major producer of rubber, rice, beeswax, and jelutong, a soft wood that is perfect for carving and pattern-making.

The head of the Teraja MPK Women's Bureau, Embong Anak Munah, claims that Kampong Teraja has a number of unique wasai (waterfall) fruits in the village's forest that frequently draw visitors and tourists from both domestic and international nations.

Visitors may go jungle hiking to view the stunning flora and fauna in the Teraja region if they're looking for more strenuous activities.

Brunei Shell Petroleum has given the Australian oil company TAP Energy (Borneo) permission to explore for oil at Block M, which covers a 3,100 square kilometres (1,200 sq mi) region primarily in the remote area of Labi and the southern part of the Tutong District.

[8] As of 2009, BGP, a subsidiary of China National Petroleum Corporation (CNPC), has been given the responsibility of carrying out the seismic acquisition project in Block M. Even for seasoned BGPs, the topographic elements of Tap Oil-operated Block M's hills and jungles present a significant obstacle.

[14] The construction works and rig-up preparation for the drilling operations on its first exploratory well are nearly finished in 2010, thanks in part to the efforts of Polyard Petroleum International Group and its subsidiaries, China Sino Oil.

With its main goal being the delineation and evaluation of oil reservoirs close to proven discoveries in the Belait Anticline, the Mawar-1 will be an exploration well in Block M.[15] The Mawar-1 onshore exploratory well in Block M has spudded, according to a report from Tap Oil in August 2010, and it should take about 28 days to drill and analyze it without incident.

Islam was first introduced to the village with the construction of the mosque, and its impact increased when Muslims from Kuala Balai moved to Labi.