Bahrain & Saudi to Negotiate Over Pipeline Project

Bahrain and Saudi Arabia are moving on with plans to build an over 100km pipeline between the two countries. The pipeline costing US$350 million will export crude from Saudi Arabia to Bahrain. Work is expected to begin by the enf of 2009. Bahrain’s Oil Minister Abdulhussain Mirza told local media discussion is underway on the design and the route for the proposed pipeline. Mirza said only after the discussions are completed will a front-end engineering and design (FEED) contractor be appointed. The pipeline will carry around 350,000 bpd of crude between the two countries and replace the existing one that carriesg 230,000 barrels.

"What we are looking at is that the new pipeline will take a different route from the existing line and avoid crowded areas in Bahrain," Mirza, said. "It will help us meet rising local energy demand and utilise our resources better." He said Bahrain expects to steadily increase its own oil production and plans to reach 100,000 bpd in the next 20 years. He said the global economy has now started showing signs of recovery, and oil prices are getting higher, which was a good sign. Mirza also heads up the National Oil and Gas Authority (NOGA).

The regulatory body has signed a production sharing agreement with a joint venture between Occidental Petroleum and Mubadala for the development of the Bahrain oilfield. Over eight drilling units and eight workover rigs will be used to drill some 3600 development wells over 20 years to raise the output of the oilfield. - Gulf Daily, Trade Arabia