Bahrain to Boost Refining, Build Pipe to Saudi Arabia

November 28, 2007
Manama, Bahrain

Kicking off the two-day Stocexpo Middle East Conference, Bahrain Oil and Gas Affairs Minister and National Oil and Gas Authority (NOGA) Chairman, Dr. Abdulhussain Mirza, said Bahrain is considering a plan to increase refining capacity and develop a new pipeline link with Saudi Arabia. It was the first time the conference for storage terminal operators was held in Bahrain. More than 150 industry leaders and 46 exhibitors attended.

Dr. Mirza said NOGA was studying expanded production at Bahrain's refinery, including new pipelines to import crude from Saudi Arabia and replacing refinery units, adding, "the authority has also initiated two major campaigns during this year to receive bids from international oil companies for exploration of offshore petroleum resources and for enhancing reserves and recovery from the Bahrain offshore field."

The Middle East supplies over 60 percent of the world’s oil and over 40 percent of its natural gas. Refining has become a highly profitable endeavor in recent years. Dr. Mirza said the region has begun significant energy investments to meet growing demand. In addition to talks with Saudi Aramco to build a pipeline, Bahrain is investing $1.1 billion to upgrade refinery assets to reduce the sulphur content in diesel fuel it processes. Under the plan, by 2015, export capacity of the Bahrain refinery would increase to 11.9m barrels a day.

Organizers chose Bahrain to host Stocexpo because of its nearness to Saudi Arabia, Kuwait and other Middle East states that are key producers in the oil and gas sector. Bahrain was also recently named “the most attractive market in the Middle East and North Africa (MENA) region,” in a report published by Citi that went on to identify the MENA region as opportune for foreign investment. The report pointed to market reforms that have made “these markets both attractive for global investors and increasingly investible."

“Despite limited natural oil reserves, Bahrain continues to shine as a center of business in the Middle East. We have carved out a niche in the refining business to complement our leadership in financial services and aluminum, among others,” noted Bahrain Ambassador to the United States, Dr. Naser Al Belooshi. “The Citi report only highlights what many already know: Bahrain is ripe for investment.”

For more information, please contact the Office of the Economic Representative via e-mail info@bahraingateway.org or by telephone at (202) 537-7810.