Bahrain Plans Oil Investment Push

- Bahrain Plans Oil Investment Push

Thursday, May 26, 2011
Knight Ridder/Tribune Business News
by Mandeep Singh, Gulf Daily News, Manama, Bahrain

Bahrain is set to invest more than $20 billion (BD 7.56B) in the oil and gas sector in the next two decades, according to Energy Minister Dr. Abdulhussain Mirza.

He said most would be used as part of a push to try and find lucrative new oil wells and the remainder on upgrading the Bapco refinery.

"Nearly $15B (BD 5.67B) will be used by oil exploration company Tatweer Petroleum at its operations in the Bahrain Field, where it will dig 3,600 new oil wells, while $6B (BD 2.26B) has been earmarked for the development and upgrade of the Bapco refinery," Dr. Mirza told the GDN.

He was speaking on the sidelines of a ceremony to officially inaugurate the new regional offices of primary energy business advisory firm Contax Partners in Seef.

"A process to dig deeper than ever before for natural gas is also well underway as is also the $350 million (BD 132MM) Saudi-Bahraini crude oil pipeline refurbishing project," said Dr. Mirza.

"Plans are being made in such a way that the 55km pipeline will be routed to circumvent residential and populated areas to spaces outside."

Dr. Mirza said a $430m (BD 162MM) lube base oil project, a joint investment venture between National Oil and Gas Authority (Noga) Holding, Bapco and Finland's NESTE Oil Company, is almost complete and would begin operations soon.

"Another project in the offing is the $120m (BD 45.3MM) waste water treatment project between Bapco and Korea's GS Engineering and Construction Company, which will be completed in 2012," he said.

The minister said confidence was fast returning to Bahrain after the recent unrest.

"Contax Partners setting up their regional headquarters in the country is a sure sign of that," he said.

"We are sure this step will prove to be a catalyst for more international players to set up their base in Bahrain."

Dr. Mirza said Noga welcomed foreign investment and played a vital role in attracting them to the energy field and its supporting services.

"Noga also provides support to overcome difficulties in order to boost business growth and investment for the development of Bahrain," he said.

Contax Partners chief executive Filippo Fantechi said the launch of its Bahrain headquarters was another step forward for the company, which has been in the Middle East energy industry for more than 25 years.

"We look forward to take these relationships to new horizons," he said.

Copyright (c) 2011, Gulf Daily News, Manama, Bahrain

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