Bahrain - Oil and Gas Bahrain-Oil-and-Gas
Overview
Despite the success of economic diversification, the oil and gas sector remains a strong component of Bahrain’s economy. As a small non-OPEC Gulf oil producer with approximately 124.6 million barrels of proven reserves, Bahrain receives it oil revenues from two fields: the onshore Bahrain field and the offshore Abu Safah field, which is shares with Saudi Arabia. The Government of Bahrain announced in April 2018 its biggest oil and gas discovery since the 1930s, representing a significant boost to Bahrain’s economic outlook. The extensive tight oil and deep gas field discovered off the west coast of the Kingdom is estimated to contain some 80 billion barrels of tight oil resources in shale. The 2,000 sq. km. Khalij al Bahrain field, which could begin production by 2023, is mainly composed of shale oil and natural gas in quantities far exceeding Bahrain’s current reserves.The Government of Bahrain launched an energy fund in 2018 that seeks to raise $1 billion from local, regional, and international investors to develop the Kingdom's energy assets. The fund will invest in a range of energy projects across the downstream, mid-stream, and upstream sectors, including developments in the newly discovered oil and gas fields.
Opportunities
- Bahrain reached an agreement with U.S. firm Halliburton to drill two appraisal wells that will enable the Kingdom to evaluate the commercial viability of Bahrain’s new oil fields.
- Bahrain is carrying out a modernization of the Bahrain Petroleum Company (BAPCO) refinery with TechnipFMC. The expansion will boost BAPCO’s processing capacity to 360,000 barrels per day (bpd) from 267,000 bpd. BAPCO has also announced the creation of the Bahrain Gasoline Blending joint venture with a UK-based Greenergy to establish a regional gasoline-blending hub.
- Bahrain LNG, jointly owned by Bahrain’s National Oil and Gas Holding Company (Noga Holding) and a consortium consisting of Teekay LNG Partners, Gulf Investment Corporation (GIC) and Samsung C&T (Samsung), has commenced the construction of Bahrain’s first LNG import terminal. The terminal will be located offshore approximately four kilometers east of the onshore receiving facility at the Khalifa Bin Salman port. The project is being developed to supplement local gas production in Bahrain and ensure capacity to meet peak seasonal gas demand and industrial growth. The project will have a capacity of 800 million standard cubic feet per day and an expected funding requirement of $900 million.
- Bahrain National Gas Expansion Co. (BNGEC) has awarded a contract to an affiliate of Japan’s JGC Corporation to build additional gas pipelines and storage tanks in an expansion project at BNGEC’s and Bahrain National Gas Co.'s (Banagas) shared gas processing plant. The plant will process 350 million cubic feet of additional associated gas. The project will also involve the installation of a new pipeline system to transport gas from the compressor stations to the new gas processing train; a pipeline system to return residue gas for reinjection, and an additional 21km butane pipeline to its Sitra facility.
- Bahrain has a well-developed aluminum industry with downstream aluminum manufacturing occupying a significant share of the secondary sector in the economy. There are several investment opportunities in the downstream aluminum value chain, including opportunities to manufacture and supply components for the GCC Railway network.
Web Resources
www.bahrainedb.comwww.oxfordbusinessgroup.com
www.cnbc.com/2018/05/08/bahrain-discovery-of-80-billion-barrels-of-oil.html
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