NEW OIL & GAS DISCOVERY IN BAHRAIN

Introduction 

Bahrain is small non-OPEC Gulf oil producer, with estimated 124.6 million barrels of proven reserves, enjoying its current oil revenues from two fields: the onshore Bahrain field and the offshore Abu Safah field, which is shared jointly with Saudi Arabia. The Kingdom’s crude oil production has been on a declining trend. According to the annual reports of regulator National Oil & Gas Authority, the Bahrain onshore field registered an average 44,234 barrels of oil per day in 2017 while Abu Safah field, 152,913 barrels of oil per day.

 

Recent Development

The Higher Committee for Natural Resources and Economic Security of the Kingdom of Bahrain announced the discovery of a new tight oil (shale oil) and deep gas resource in the Khaleej Al Bahrain Basin, located off the west coast of the Kingdom, spread across 2,000 square kilometres in shallow Gulf waters. Seismic studies conducted by US upstream consultancy DeGolyer & MacNaughton on behalf of the state-owned energy operator National Oil & Gas Holding (NOGAHOLDING) has estimated reserves of 81.5 billion barrels of light oil and 13.7 trillion cubic feet of tight gas.

For the past several years, NOGAHOLDING through its subsidiaries has been developing multiple projects to strengthen the country’s downstream capabilities. The projects are as follows;

 

Project / Company

 

Description of the Project

 

Estimated Project Cost

BAPCO Modernisation

Programme / BAPCO

Refinery upgrade, including capacity increase from 267,000 bpd to 380,000 bpd US$5.7 billion
New AB Pipeline / NOGAHOLDING Construction of a new pipeline between Saudi Arabia and Bahrain, capable of supplying 400,000 bpd of Arabian crude oil to the Sitra Refinery US$330 million
Bahrain LNG Import

Terminal / Bahrain LNG

Construction of an LNG receiving and regasification terminal in Bahrain with a capacity of 800 mscfd US$991 million
Bahrain Gas Plant Project / Tawseah Construction of a new gas processing facility and related facilities US$645 million
Refuelling Infrastructure

Project / BAC Jet Fuel

Constructing a new fuel storage facility at Bahrain International Airport and related facilities US$80 million
Aromatics Complex /  Aromatics Petchem Construction of an aromatics complex US$2.4 billion
Bahrain Field Expansion

Project / Tatweer

Drilling of three new gas wells, debottlenecking five existing gas wells and the construction of a new non- associated gas dehydration facility US$130 million

 

The current largest significant discovery since 1932 has provided Bahrain with an opportunity to turn the country’s fortune in becoming a major oil and gas producer ofthe region.

 

Conclusion

Moving forward, Malaysian companies serving the oil and gas upstream and downstream segments are encouraged to closely monitor the development and establish partnership for foreseeable opportunities within the medium term perspective.

 

For any enquiry, please contact MATRADE Dubai at dubai@matrade.gov.my

 

Disclaimer

While every effort has been taken to ensure that the contents of the article (MATRADE’S Insight) are accurate and current, MATRADE cannot be held responsible for any inclusion, omission or error and is not liable for any loss or dispute arising from the use of the information provided.