MANAMA: Mahmood Rafique, Editor: H.E. Shaikh Mohammed bin Khalifa Al Khalifa, Minister of Oil, said the Saudi-Bahrain gas pipeline project will boost the scope of expansion of oil and industrial projects in the Kingdom.
The Minister Oil, who was speaking during an event organised by the US Chamber of Commerce, Bahrain Chapter and discussed the latest developments in the oil sector in the Kingdom of Bahrain in the wake of the COVID-19 pandemic which has had hit hard the global businesses and its economic impact on the local, regional and international economies.
The Minister while highlighting the importance of upgrade of the Bapco Refinery BMP project, which has already completed fifty per cent, said this was one of the largest and ambitious projects in the Kingdom with an estimated cost of US$6 billion and enhancing the capacity to 400,000 barrels.
The Minister praised the good performance and efforts of the executive management of the project to work in the spirit of one team work and keeping the momentum of the project according to the schedule, despite the negative economic effects of the COVID-19 pandemic. “The Bapco project will have a significant and positive impact on revenues and is scheduled to be completed in the third quarter of 2022,” he said.
“The world economy is facing a major challenge in light of the global Corona virus pandemic, which halted the global economic growth and businesses. The COVID-19 affected all the activities of international companies posing a threat to the continuity and survival of these companies in the world markets, stressing the commitment to flexibility, wisdom and good planning at this time that guarantees a better and promising future for the world oil markets,” the Minister said.
HE touched upon the importance of strengthening the role of shared responsibility among all oil producers and standing side by side in order to come up with results and decisions that help this vital industry to survive, continue and prosper.
“The COVID-19 pandemic has led to a decline in demand for oil unlike in the modern era, and these indicators are worrying for the oil industry, which undoubtedly affects the prosperity and growth of oil development projects. The Organization of Petroleum Exporting Countries (OPEC) reached on an agreement during its last meeting by reducing oil production to 10 million barrels per day from May 1, 2020 for an initial period of two months. Hoping that this global pandemic will soon recede and the economy will flourish again.”
The Minister, while referring to investment opportunities in oil blocks (1,2,3,4) in the Kingdom of Bahrain, which is estimated to have an area of 9,000 square kilometers, said he had signed with the Italian company Eni to drill several wells in block 1 and was scheduled to start in April and because of Corona it has been postponed. As all drilling equipment is ready to start drilling. “As for block 4, it is located in the Gulf of Bahrain that was recently discovered, where the drilling of the experimental well was completed and began to flow last year and will be added to the production systems soon.”
The Minister highlighted the importance of cooperation with Halliburton, which provided all its expertise, knowledge and techniques resulting in positive achievements in this field. As two deep gas wells have also been drilled, looking forward to further achievements in the future.
The Minister of Oil also announced the completion and launch of the first LNG jetty consisting of a floating storage unit, a port and a sea barrier, a nearby platform for fumigation of liquefied gas to return to its gas state, underwater pipes to transport gas from the platform to the shore and a land gas delivery facility, as well as a land-based nitrogen production facility. “As Saudi Arabia are establishing a network of gas pipelines to connect Bahrain with the rest of the GCC countries, which will have a positive repercussion on various levels, particularly the expansion of oil and industrial projects in the Kingdom of Bahrain.”
The Minister stressed the Kingdom’s keenness to strengthen cooperation in this field with various entities, organizations and specialized companies to exchange ideas and experiences and see the latest technologies for the development of the oil, gas and energy sector in the Kingdom of Bahrain. The Minister also touched upon the importance of inviting international oil companies to invest in exploration and production in the Kingdom of Bahrain.
