Bapco completes financing of modernisation programme

6355919421582148905The Bahrain Petroleum company has announced that its multibillion-dollar refinery modernisation programme has reached a financial close

Estimated to cost more than US$4bn, Bapco aims to boost its refining capacity from 267,000 bpd to 380,000 bpd.

Bahrain’s Prime Minister Prince Khalifa bin Salman Al Khalifa laid the foundation stone for the project in the presence of Prince Salman bin Hamad Al Khalifa, crown prince of Bahrain, deputy supreme commander and first deputy premier, on March 5. Bapco said the expansion is expected to be completed by 2022.

Bahrain, a small non-OPEC Gulf oil producer with approximately 124.6 mmbbl of proven reserves, gets its oil revenue from two fields: the onshore Bahrain field and the offshore Abu Safah field, which is shared with Saudi Arabia.

Around 88 per cent of the crude that Bapco refines comes from neighbouring Saudi Arabia, and the rest comes from the field of Bahrain.

Financing was formally secured on 20 December last year with BNP Paribas, HSBC Middle East and Verus Partners acting as financial advisors to help Bapco meet the conditions required to successfully complete the financing process.

Sheikh Mohammed Khalifa Al Khalifa, Bahraini oil minister, said, “We achieved this by assembling a strong team that worked tirelessly to secure a positive result.”

“Given the size and scale of the programme, this is a mutually beneficial conclusion for a wide variety of partners from across the globe because it means we can provide a wider product offering and meet higher demand from our customers,” he added.

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