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.
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
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|
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.
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.
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