Bahrain Banks on Offshore Projects

The Bahraini Oil and Gas Affairs Minister, Mirza, inaugurates the event Despite the uncertainties posed by the global economic crisis, Bahrain is going ahead full-steam with its offshore projects. As part of the strategy, the kingdom’s Oil Ministry has established a joint venture operating company with US major Occidental and the UAE's Mubadala Development Co to drill 3,600 new oil wells over the next 20 years for the Bahrain Oil Field development project, Mirza, who is also the chairman of the National Oil and Gas Authority (NOGA) said. Hea was giving his keynote address at the second Offshore Middle East Conference and Exhibition.

Under the terms of the April agreement, Occidental will hold a 48% interest in the joint venture company, Mubadala 32% and a subsidiary of Noga the remaining 20%. The first well would be drilled early next year. Also, Bahrain has targeted more than doublingo output from the Bahrain oilfield from 33,000 bpd to 75,000 bpd within five years and to a peak of 100,000 bpd thereafter. Gas production from the field is expected to grow to over 2.5 Bscf/d from the current levels of 1.7 Bcf/d, he said. In recent years, the kingdom has stepped up drilling and exploration efforts to try to raise indigenous oil and gas production and has also introduced enhanced recovery techniques to boost its production of heavy oil, he said.

Bahrain's investment in its oil and gas sector did not stop even during the darkest days of the economic slowdown, said, Mirza. He said Bahrain had averted any funding crisis by anticipating the massive slump in oil prices. He said Bapco was also looking at the refinery configuration beyond 2015, to improve its profitability and competitiveness. Mirza added Bahrain was considering the possibility of increasing refinery crude capacity from 265,000 bpd to 400,000 bpd. Bapco has successfully completed the drilling of three gas wells as part of a major US$100 million program to boost natural gas production in Bahrain by an additional 500 Mscf/d, he said. – TradeArabia