Currently the oil industry provides 70 per cent of the national income to the Kingdom of Bahrain, and it is the strong intent of the government to create sources of non-oil income. However, this does not detract from the tremendous support given to Bapco by His Majesty the King and the Government of Bahrain, Dr Mustafa Al Sayed, Chief Executive of Bapco, said in his address at the 7th International Conference and Exhibition on Chemistry and Industry yesterday.

Dr Al Sayed focused on the development of these sectors in Saudi Arabia, Qatar, Dubai, Kuwait and Oman and highlighted the sectors that contributed to the success of this industry. He also examined the economic fundamentals of GCC countries.

He pointed out that those countries blessed with oil-rich economies face the challenge of sustainable prosperity, and diversification away from a hydrocarbon-based economy is necessary to achieve this goal.

He focused on Bapco saying that Bahrain is blessed with oil and gas resources, but as the geographic area is small, natural resource reserves are also relatively small. Bapco's strategic direction is 'Striving for Excellence'. "This means we seek out business excellence, and we then implement best practice."

"Bapco is currently in the process of commissioning a $680 million investment to make the cleanest diesel in the world. This will enable the company to diversify our geographic markets, and it is a diversification of our product range that it will make our company more competitive, and reduce sulphur oxide emissions from vehicles," he said.

"Bapco is also making large investments to ensure the development of the Bahrain oil field and an increase in the supply of natural gas. These investments will enable the Bahrain Economic Development Board and the Bahrain Ministry of Industry to continue to attract new businesses, and hence support industrial growth in Bahrain."

Dr Al Sayed said: "Bapco is investing $140 million to remove sulphur from Khuff gas and reduce the sulphur oxide emissions from the Bahrain refinery to that of a refinery in California. Yes, to that of a refinery in California."

By Naila Barakat Business Reporter

© Bahrain Tribune 2007

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