Energising The Future
The Barhain Petroleum Company (BAPCO) is a national oil company wholly owned by the Government of Bahrain.
BAPCO is one of the oldest oil and gas company in the Gulf, established in Bahrain by the Standard Oil Company of California in 1929.
First oil was discovered in 1932 and the first refinery was built in 1936 with a capacity of 10,000 b/d which played a strategic role during the second World war.
This refinery was expanded to 250,000 b/d capacity in 1968.
In 1976, the company was incorporated as a national oil company called Bahrain National Oil Company (BANOCO).
In 1981, BAPCO was reactivated as a 60/40 joint venture between Bahrain Government and Caltex from USA.
In 1999, The Bahrain Government merged BANOCO and BAPCO in taking also 100% ownership of the newly BAPCO integrated company.
Today BAPCO is leading operations:
– Upstream with oil and gas onshore and offshore exploration
– Midstream with 54 kilometres pipelines to supply crude oil from Saudi Arabia and 14 million barrels storage capacity with natural gas and refined products marine terminal.
– Downstream with the Sitra refinery still with its 250,000 b/d capacity from which 84% of the crude oil is coming from Saudi Arabia as feedstock.
From its Sitra refinery, BAPCO is selling 8% of its production on the domestic market and exporting the 92% to Middle East, India, the Far East, South East Asia and Africa.
In Barhain, BAPCO supplies the natural gas to the power generation facilities and other industries.
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BAPCO Key Figures
2011 Revenues: $10.22 billion
BAPCO Projects and Business Highlights
Upstream, BAPCO signed production sharing agreements (PSA) with Occidental Petroleum from USA and PTTEP from Thailand to explore new fields onshore and offshore.
BAPCO intends to gather an monetize the flared gas and to develop and implement the enhanced oil recovery (EOR) techniques on the existing fields.
In that perspective, BAPCO signed with Noga a development and production sharing agreement (DPSA)
Midstream, BAPCO is planning a new natural gas import terminal to meet its increasing domestic power consumption and to supply the refinery.
Downstream, the limited oil and gas resources in Bahrain, positions BAPCO refinery at the core of the local economy in exporting most of the refined Saudi crude oil.
Therefore BAPCO is planning to revamp and expand the refinery with additional 100,000 b/d capacity.
Since most of the refined crude oil is already imported from Saudi Arabia, the expansion of the refinery requires to build a new pipeline to increase the supply of crude as feedstock.
This pipeline should be 70 kilometers long to connect Ras Tanura refinery in Saudi Arabia to Sitra in Bahrain.
WorleyParsons is actually completing the front end engineering and design (FEED) work on this connection.
Then BAPCO is planning to call for the tenders of the engineering, procurement and construction (EPC) of the pipeline on the first half 2013.
In parallel, BAPCO completed the feasibility study of the revamping and expansion of refinery.
Now BAPCO is preparing the calls for tender for the FEED contracts of refinery for the second half of 2013.
From the feasibility study, the BAPCO Sitra refinery project should include four packages for FEED contract
– Residue conversion unit
– Hydrocracker and associated units
– Crude units and associated facilities
– Offsites and utilities
The largest package should be the Residue conversion unit due to treat heavy crude oil before refining.
But the most critical package will be the Offsites and utilities as to be integrated into the existing facilities.
In addition BAPCO is planning to appoint an adviser to select the technology that should be tendered mid 2013.
In this context, BAPCO is planning to award the estimated $6.5 billion capital expenditure EPC contracts of the four refinery packages by 2014 in order to run into commercial operations in 2017.
