Bahrain O&g Facts and Figurs 2012 en

His Royal Highness
Prince Khalifa bin Salman Al Khalifa

The Prime Minister
His Majesty
King Hamad bin Isa Al Khalifa
The King of the Kingdom of Bahrain
His Royal Highness

Prince Salman bin Hamad Al Khalifa
The Crown Prince & Deputy Supreme
Commander
OIL & GAS / FACTS & FIGURES
2012
2012
2012
Introduction by H.E.The Minister of Energy ...................................................
Oil & Gas Sector Organization Chart .......................................................
National Oil & Gas Authority (NOGA) ....................................................
nogaholding ..................................................................................................
13
Bahrain Petroleum Company (BAPCO) ..................................................
14
Bahrain National Gas Company (BANAGAS) .......................................
22
Bahrain National Gas Expanstion Company ..........................................
26
Gulf Petrochemical Industries Company (GPIC) .....................................
27
Bahrain Aviation Fuelling Co. (BAFCO) ..................................................
36
Bahrain Lube Base Oil Co. .........................................................................
38
Tatweer Petroleum Co. ................................................................................
40
Skaugen Gulf Petchem Carriers Co. .........................................................
43
Oil & Gas Statistics .....................................................................................
46
Oil & Gas Agreements ................................................................................
52
Bahrain and Organization of Arab Petroleum Exporting Countries (OAPEC)
54
Bahrain and Organisation of Petroleum Exporting Countries (OPEC)
57
Bahrain and the International Energy Forum .........................................
59
Contents
2012
2012
I am pleased to present as a reference
document the Oil & Gas Facts and Figures
2012 booklet, which is promptly released by
the National Oil and Gas Authority (NOGA)
every two years. The publication sheds light
on the oil and gas industry in the Kingdom
of Bahrain, incorporating the various
achievements, programmes and projects,
and showcasing the efforts of the NOGA
ofcials in the advancement of this vital
sector, which contributes substantially to the national economy.
This booklet has outlined, through its pages, the numerous achievements
and developments in the oil and gas industry in the Kingdom, including
investment plans and offshore Exploration and Production Sharing
Agreements (EPSA) and projects aimed to develop the Bahrain Oil Field.
It also contains oil statistics, existing relations of cooperation between
the Kingdom of Bahrain and oil organizations, including members of the
Organization of Arab Petroleum Exporting Countries (OAPEC) and other
oil companies afliated to it. The Kingdom of Bahrain had the honour
of chairing the 2011 OAPEC Ministerial Council and its Executive Ofce
session.
The achievements listed in the booklet are testimony of the progress
and advancement witnessed in the prosperous era of His Majesty King
Hamad bin Isa Al Khalifa, the efcient government under Prime Minister
His Royal Highness Prince Khalifa bin Salman Al Khalifa and the many
initiatives of His Royal Highness Prince Salman bin Hamad Al Khalifa,
the Crown Prince and Deputy Supreme Commander. It is also a token of
appreciation for the guidance and constant support of the wise leadership
to the progress and development of this sector.
The outstanding achievements in the oil and gas projects is also due to
the efforts of the NOGA Board of Directors and all employees working
in the sector, who have an important role in supporting the economy
and advancement of our Kingdom, under the foresight of the dedicated
leadership.
Dr. Abdul Hussain bin Ali Mirza
Minister of Energy
Introduction
General view of Gulf Protochemical Industries Company (GPIC)
2012
2012
2012
National Oil and Gas Authority
The National Oil and Gas Authority (NOGA) was established in September 2005
to be in charge of the organization, supervision and development functions of
the oil and gas industry and related industries in the Kingdom of Bahrain.
NOGA is committed to realization of the 2030 economic vision of the Kingdom
of Bahrain and the Authority has formulated its strategic plan for the future
years in conformity with this vision.
NOGA vision seeks to make it the pioneering agency for meeting the oil
and gas requirements needed for the economic growth and upgrading the
standards of living. Raising the standards of living is the target that the wise
political leadership is striving to achieve. Making available the necessary
resources for economic growth is the main vehicle for attaining this important
objective.
The strategic initiatives established by the Authority are intended to achieve
the following strategic objectives:
* Meeting the ever growing demand for energy in the Kingdom.
* Creation of an incubator for skilled workforce and expertise in the oil and
gas in the Kingdom.
* Diversication and development of businesses related to the oil and gas
industry.
* Attaining excellence in the operation and businesses.
2012
The promulgation by His Majesty King Hamad bin Isa Al Khalifa, King of the
Kingdom of Bahrain, of Royal Decree No. 63 for the year 2005 constitutes
an important turning point in the history of oil in the Kingdom of Bahrain,
whereby the responsibilities for the oil sector were identied and concentrated
in one authority, the National Oil and Gas Authority, which is tasked with the
supervisory and regularity duties of the oil and gas sector, conservation of
the Kingdoms oil and gas natural resources, and creation of alternatives in
line with international developments.
The vision has been formulated to enable the Authority to be the pioneering
authority in meeting the oil and gas requirements for sustained economic
growth and enhancement of the standard of living.
In order to implement the tasks and functions assigned to it, the Authority has
charted for itself pivotal values that reect transparency, integrity, respect,
fairness, creativity, professional competence and teamwork.
The purpose of the Royal Decree was to reorganize and streamline the oil
and gas sector in the Kingdom of Bahrain with a view to attaining the highest
standards of efciency and productivity.
During the rst year of its inception, the Authoritys endeavour focused on the
development of the main laws and legislations which regulate its functions
and the operations of its subsectors concerned with the Kingdoms oil and
gas issues, coupled with coordination with many international specialized
companies
for
the
development of the oil
sector.
The
Authoritys
second
year
was
characterized
by
several achievements,
involving exploration
and
production
sharing
agreements
with
international
oil
companies.
offshore Blocks 3 and
4
agreement
was
awarded to Occidental
Company of USA, while
In order to keep pace with the international changes, re-establish the efcacy
of the oil sector and maximize benet from the available opportunities in the
light of globalization and prevailing international economic openness, the
wise political leadership of the Kingdom decided to reorganize and restructure
this vital sector by the establishment of the National Oil and Gas Authority
under Royal Decree No. 63 for the year 2005, which was promulgated on
26 September 2005, to replace three oil authorities, namely the Supreme
council for Oil, the Natural Gas Committee and the Ministry of Oil, and to
directly assume the duties and functions of these authorities.
2012
Block 2 tenders were awarded to PTTEP of Thailand. Furthermore, in the same

year H.R.H. the Prime Minister inaugurated the low sulphur diesel complex
which is considered one of the most important projects for the modernization
and upgrade of the Renery. This coincided with the Kingdoms celebrations
which marked the 75th anniversary of the oil discovery in the Kingdom of
Bahrain, in addition to the formation of nogaholding.
10
The third year witnessed the completion of several regulatory legislations

involving institutional development and introduction of adjustments in the
prices of petroleum products. These adjustments were designed to conserve
the Kingdoms resources and fortify the national economy. The same year
witnessed the implementation of a succession plan involving replacement
of senior leaderships positions and empowerment of women so that they
may assume leading positions in tandem with the structure of the oil and
gas sector. Similarly, the deep gas exploration project was promoted and 20
companies expressed desire to le proposals in addition to the announcement
of Bahrain Field Development project (one of the oldest elds in the region
where production started in 1932).
The development process is intended to promote the elds yield and
maximize its production. During the same year, the rst investment for
nogaholding was made, involving taking a share in the lubricating base
oil production project at a total cost of more than 400 million US dollars.
The fourth year, i.e. 2009, was marked by the promulgation of Law No.
24 which provides for approval of the exploration and production sharing
agreement for development of Bahrain Field, as well as issuance of Law No.
6 on the exploration and production sharing agreement for offshore Block
No. 1 between Bahrain and Occidental , apart from the formation of Bahrain
Lubricating Base Oil Company, a joint venture in which the Government has
a 55% equity and NESTE Oil Company of Finland a 45% share, in addition
to the establishment of the Petroleum Development Company (TATWEER
PETROLEUM) between Occidental Company, MUBADALA of the United Arab
Emirates and nogaholding for the development of Bahrain Field and where
Bahrains participation, represented by the Oil and Gas Holding Company,
amounts to 51% of the company nominal capital.
2012
The year also saw call for proposals for the deep gas project from international
oil companies in order to increase gas production for industrial use.
This year witnessed more cooperation between NOGA and the Supreme
Council for Women (SCW). H.R.H Princess Sabika bint Ibrahim Al Khalifa,
Head of Supreme Council for Women, opened the Princess Sabeeka Park
in (GPIC) and Princess Sabeeka Park in (BAPCO) in Awali. These reect the
interest of H.R.H. in environment and her keenness to encourage Bahraini
women employed in the sector. NOGA also announced the implementation of
the provisions of the (MoU) signed between the NoGA and the SCW in 2008
within the framework of the United Nations Convention on the Elimination of
In its fth year, the initiative of Minister of Energy resulted in a major event in
the oil scene when H.R.H Prince Salman bin Hamad Al Khalifa, the Crown Prince
and Deputy Supreme Commander as well as the President of the Economic
Development Board launched Tatweer Petroleum Company in Jebel Dukhan
near Well No. (1) in January 2010, unveiling the memorial plaque to mark the
occasion. The rst exploration oil well by Tatweer was launched in May.
11
All Forms of Discrimination against Women (CEDAW-1979). NOGA abolished
the distinction in the disbursement of social allowance among workers.
The year saw the launch of the Sulphur Pellets Production Project as part of the
Renery
modernization
programme of BAPCO,
the pilot Carbon dioxide
Recovery Plant of the
GPIC as well as the
signing of $120 million
nancial assistance to
the Bahrain Lube Base
Oil
Project.
Another
important event was the
signing of a $95 million
deal for the installation of
steam turbine generators
in Bahrain Lube Oil
Company (BLOC) with
French company Technip.
2012
In line with the Authoritys strategy in favour of alternative energy, a wind
power project is being implemented in BAPCO in association with a Japanese
company. An energy cooperation agreement is also in place between NOGA
and (UNDP) to study the feasibility of establishing an energy center for the
planning of energy sources in the country.
This year, among the 12 initiatives launched by NOGA for conservation

and optimal utilization of the nations natural resources are the projects to
remove sulfur from the gas renery. The $151 million project is implemented
by BAPCO in cooperation with the Public Commission for the Protection of
Marine Resources, Environment and Wildlife to promote environmental health
within the company and its surroundings.
12
In addition, the year also saw the rst shipment of high-quality diesel to
Singapore, contributing to the reputation of the company and its products on
a global level and increasing national income.
The sixth year saw
major
international
participation
by
the
Kingdom of Bahrain with
a signicant presence
in oil events, attended
by H.E. The Minister of
Energy attended a Special
Ministerial Meeting of
the International Energy
Forum in Riyadh on
February
22,
2011,
held to ratify the nal
document of the forum to continue its role in promoting dialogue between
producers, consumers and promote cooperation between stakeholders in the
energy industry.
This year, NOGA was awarded quality certicate ISO 2008:9001 issued by
DNV Company in recognition of its commitment to implement international
standards in all departments.
Also this year, the Prime
Minister H.R.H Prince
Khalifa bin Salman Al
Khalifa inaugurated the
ship Vision Bahrain on
November 14, 2011, a
project with Skaugen
Gulf Petchem Carriers
(SGPC), H.R.H the Prime
Minister also launched a
Lube Base Oil Project on
November 29, 2011.
2012
nogaholding was established by Royal Decree No. 77 of 2007,

promulgated on August 15, 2007. The company is the investment
and development arm of the National Oil & Gas Authority (NOGA)
and plays a fundamental role in the execution of the strategic plans
of the Authority and stewardship of the governments investment
in 8 Companies: Bahrain Petroleum Company (Bapco), The
Bahrain National Gas Company (Banagas), The Bahrain National
Gas Expansion Co., The Bahrain Aviation Fuelling Company
(Bafco), The Gulf Petrochemical Industries Company (GPIC),
Bahrain Lube Base Oil Company (BLBOC), Tatweer Petroleum and
Skaugen Gulf Petchem Carriers Company (SGPC).
nogaholding is a business focused company that aims to create
shareholder value by the successful management and growth
of a portfolio of the Government of the Kingdom of Bahrains
shareholdings in oil, gas and petrochemical assets. nogaholding
creates value from existing portfolio companies and by enlarging
the portfolio. At the time the company was formed in 2007 the
portfolio comprised 4 companies, In 2008 , one more company
was established wholly owned by nogaholding which is the Bahrain
National Gas Expansion Company. 2009 saw the addition of two
partly owned joint ventures Tatweer Petroleum and BLBOC. In
2010, SGPC a partly owned (35% share) joint venture joined
entered the nogaholding portfolio family.
nogaholding
13
2012
The Bahrain Petroleum Company (BAPCO)
Energising The Nation
14
BAPCO is a unique company, which has never stood still. The rst to
discover oil in the Arabian peninsula in 1932, it started exporting in
1934, and rening in 1936. Since then the company has helped shape
the modern Kingdom of Bahrain, not simply through the generation
of wealth, but also through the development of Bahrains manpower.
Many of this highly skilled and sought-after elite now occupy senior
positions in Government and industry.
More than 80 years after the companys establishment the adventure
continues with new ambitions in exploration, new initiatives in oil and
gas eld development, and new global markets opening up with the
completion of the renerys US$725m Low Sulphur Diesel Plant. The
company can now export ultra low sulphur diesel to those countries
with the most stringent environmental standards.
2012
Bapco (CLOSED COMPANY)

BAPCO, wholly owned by the Government of Bahrain, is engaged
in the oil industry including rening, distribution of petroleum
products and natural gas, sales and exports of crude oil and rened
products.
The company owns a 260,000 barrel-a-day renery, storage facilities
for more than 14 million barrels, a marketing terminal, and a marine
terminal for its petroleum products. 90% of rened products are
exported. BAPCOs prime customers for crude oil and rened products
are based in the Middle East, India, the Far East, South East Asia and
Africa.
REFINING
The Bahrain Renery - one of the
largest in the Middle East and
the oldest in the GCC - renes
over 260,000 barrels of crude
every day. About one-sixth of
this crude originates from the
Bahrain Field, the remainder is
received from Saudi Arabia in
pipelines extending 27 km over
land and a further 27 km under
the sea .
STORAGE
There are more than 170
storage tanks at different sites
with a total capacity of over 14
million barrels.
Environmental protection plays as an important part in the companys

US$1 billion+ investment programme and with the commissioning of
the US$151 million Renery Gas Desulphurisation Plant (RGDP) , the
air quality was further improved.
15
2012
PRODUCTS
LPG Naphtha, Gasoline, Kerosene, Aviation Turbine Fuel, Ultra Low
Sulphur Diesel, Heavy Lube Distillate, Fuel Oil and Asphalt.
MARKETING
BAPCO exports crude oil to world markets and sells petroleum
products locally and internationally. It also supplies and sells aviation
fuel at the Bahrain International Airport through its afliate, The
Bafco, in which the company is a 60% shareholder. The company also
provides the full requirements of natural gas to the power generating
plants and other industries in the country.
16
TRAINING AND DEVELOPMENT

BAPCO is pressing ahead with its ambitious human resource
management programme to ensure that the skills of its workforce
match the technological and business demands of the future. In
addition, its scholarship and sponsorship programmes support more
than 300 students in higher education in Bahrain and abroad.
ENVIRONMENT, HEALTH & SAFETY
Protection of the environment continues to be a major focus of the
companys policy. In line with best practice, BAPCO has created an EHS
policy that integrates the functions of Occupational Health, Industrial
Safety and Environment. A founder member of the Regional Clean
Sea Organisation (RECSO), the company remains at the forefront
of technical expertise in oil spill response. A clearly set out policy, a
range of protective clothing and equipment, full training and strict
2012
OPENING OF GAS DELIVERY SYSTEM TO AL DUR POWER

PLANT
Under the patronage of H.E. Minister of Energy, a ceremony was held
on Wednesday September 14, 2011, to mark the ofcial opening
of Bapcos Gas Delivery System to Al-Dur Power Plant. The project
is envisaged as one of the most important and largest industrial
projects being implemented at the moment in the Kingdom to serve
the southern area of Bahrain and particularly Al-Dur Power Plant. The
ceremony is also in line with Bapcos strategies aimed to enhance the
oil and gas sector and cater for the growing demand for energy in the
future. Bapco which operates an integrated high pressure natural gas
network extending from the farthest southern Bahrain eld to all gas
consumers extended up to the northern part of Bahrain, and being
a government entity, undertook the responsibility and challenge of
constructing gas distribution facilities and a 13.5 kilometer long 20
inch gas pipeline, in record time to supply more than one billion cubic
feet per day of gas to Al-Dur Power Plant as well as future power
stations at the area in a cost of US $ 26 million.
monitoring form BAPCOs ongoing commitment to the prevention

and control of accidents and emergencies. The company has worked
up to 12 million employeehours without lost-time accident. Glimpses
of recent and future Bapco projects & programmes:
17
2012
18
SULPHUR HANDLING
FACILITIES PROJECT (SHFP)
The Sulphur Handling Facilities
(SHF) project was implemented
in 2007 as part of
Bapcos
Strategic Investment Programme
to handle increased liquid sulphur
production from 230MT/day to
500MT/day post Low Sulphur
Diesel Production (LSDP) and
Renery Gas Desulphurisation
Plant (RGDP) Projects.
These
new facilities produce premium
quality pelletised sulphur that
conforms to needs of a rapidly
growing & competitive market.
The new Sulphur Handling
Facilities have enabled Bapco to
replace its aging pelletiser plant
that was at the end of its service
life. The modernisation and replacement of such facilities that no
longer meet Environment, Health and Safety (EHS) regulations is
reective of Bapcos strong commitment to preserving the world
in which we live for future generations. The project has been
implemented on a fast track basis at a total cost of US$37.5 million.
In addition to contributing to the conservation of the environment,
the project has brought in expected returns on investment since
commissioning due to enhanced unit reliability, low operational costs
and favourable market prices.
WASTE WATER TREATMENT PLANT PROJECT (WWTPP)
Bapco, as part of its commitment to environment conservation, is
implementing the construction of a new Waste Water Treatment Plant
(WWTP) at a total cost of US$120 M. This project is being executed
under Bapcos Environmental Strategic Plan and as a requirement of the
General Directorate of Environment and Wildlife Protectorate (EWP).
Also, the syndicate funding Bapcos Strategic Investment Programme
(SIP) required implementation of this environmental project The
new plant will provide secondary treatment to the Renery waste
water that is received from the existing primary treatment facility
(which consists of oil separators followed by Induced Air Flotation
2012
SUCCESSFUL MIGRATION OF IN-LINE BLENDING DISTRIBUTED

CONTROL AND OIL MOVEMENT SYSTEMS
PC&I has successfully upgraded the obsolete rst-release of
Yokogawas Windows-NT based Centum-CS Distributed Control
System (DCS) and Unix based Oil Movement System in the Renery
Tank Farm Control Building. This consisted of upgrading the consoles
to the latest Yokogawa DCS - Centum VP based CS3000 and Windows
2008 Server Enterprise Edition based Oil Movement System.
The project was completed as per the schedule and within the
approved 3 million US$ budget.
The project scope involved the installation of new CS3000 Consoles
in the Control Room, replacement of redundant Central Processing
Units (CPU) along with new Oil Movement Servers in the Renery
units). Currently the efuent from primary treatment facilities meets

EWP requirements after dilution with large cooling water streams
of the Renery. However, with the new EWP regulations in place,
Bapco would like to meet treated efuent discharge standards at the
source itself. The new WWTP is based on a state-ofthe- art 4-stage
membrane bioreactor technology and for its size, it will be a rst of
its kind in any Renery waste water treatment plant worldwide.
19
2012
Tank Farm Control Building and ROP Ofce. Taking advantages of

the advanced features of the CS3000 DCS, the process graphics and
system parameters were also enhanced to provide the operators
with up-to-date information for the smooth running of their day to
day operations.
20
HISTORICAL MILESTONES
1929
1932
1934
1936
BAPCO established by Standard Oil Company of California.

First oil discovery in the Arabian Gulf.
First shipment of crude oil.
The Bahrain Renery - with a capacity of 10,000 barrels per
day - opened.
1945 A-B pipeline laid between Bahrain and Saudi Arabia; then the
worlds longest commercial submarine pipeline
1948 Discovery of natural gas
1968 Bahrain Renery expansion programme completed with 250,000
barrel-a-day capacity
1976 Incorporation of the Bahrain National Oil Company (BANOCO)
1980 Establishment of Supreme Council for Oil under the
chairmanship of H.R.H , the Prime Minister
1980 The Petroleum Marketing Unit is set up in the Ministry
of Development & Industry with the aim of marketing
the Governments 60% share of products from the Bahrain
Renery.
1981 BAPCO reconstituted as a joint venture rening company

owned 60% by the Bahrain Government and 40% by Caltex.
1982 BANOCO assumes full and direct responsibility for production
of oil and gas from Bahrain eld
1985 Incorporation of Bahrain Aviation Fuel Company (BAFCO) in
which BANOCO shares 60%, Caltex 27% and BP 13%
1992 Inauguration of Dar An-Naft (oil meusum) in line with 60 years
of oil discovery
1994 The Bahrain Renery awarded ISO 9002 Certication from
British Standards Institution (BSi)
1997 The Bahrain Government assumes 100% ownership of the
Bahrain Renery
1999 The new BAPCO is formed following the merger between The
Bahrain Petroleum Company B.S.C. and The Bahrain National
Oil Company
2000 Start of petroleum products in-line blending and introduction
of unleaded gasoline to the local market
2001 Kerosene Merox units commissioned as part of the Renery
Modernisation Plan
2002 Launch of new Bapco Strategic Direction
2004 Contract signed to execute Low Sulphur Diesel Production
Project
2005 US$1.1 billion nance secured for investment programme
2007 Start-up of Ultra Low Sulphur Diesel Complex in line with 75
years of oil discovery
2009 Bapco achieves EMS ISO 14001 certication
2012
21
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The Bahrain National Gas Company (BANAGAS)
22
The Bahrain National Gas Company (Banagas) is 75% owned by

nogaholding, 12.5% by Chevron Bahrain and 12.5% by Boubyan
Petrochemical Company, a Kuwaiti company listed on the Kuwait Stock
Exchange, who acquired the Arab Petroleum Investment Corporation
(APICORP) shares in September 2011. The primary objective of the
Company is processing associated gas into marketable products,
propane, butane and naphtha, and supplying residue gas for local
industrial use and providing employment and training opportunities to
Bahraini nationals.
The initial facilities, a processing train, four compressor stations and
storage facilities at Sitra, were ofcially inaugurated on 17th December
1979 and the rst shipment of product made in early 1980. Propane,
butane and naphtha are exported worldwide while the residue gas, mainly
Methane and Ethane, is routed to Aluminum Bahrain, the Bapco renery
and the Riffa power station. Due to a substantial increase in the quantity
of associated gas extracted from the Bahrain Oil Field during subsequent
years, an Expansion Project was launched in 1988 to upgrade plant
processing capacity from 170 to 280 MMSCFD. The Project, which was
implemented by the Government of Bahrain as a sole venture, involved
construction of two additional compressor stations and a new processing
train at the Central Gas Plant. The Project was commissioned in October
1990.
In 2003, another compressor station was constructed as part of the
Project to process additional quantities of associated gas, as well as
propane and butane-rich renery off gas under an agreement with the
Bahrain Petroleum Company. The Bahrain National Gas Expansion was
incorporated in 2008 when the Expansion Project was converted into an
independent company, wholly owned by nogaholding. Banagas operates
and manages the expansion. The Company has been able to achieve
its target of maintaining high standards of occupational safety and
health through regular training and participation of all the workforce in
promoting safety awareness. In addition, adequate procedures have been
introduced to ensure strict
adherence to stringent
safety rules in order
to safeguard life and
property. The Companys
outstanding safety record
has been internationally
recognized by such renown
organizations as the Royal
Society for the Prevention
of Accidents, the Gas
Processors
Association
of America, the National
Safety Council and the
2012
23
2012
24
British Safety Council.

In
2011
Banagas
was awarded OHSAS
18001:2007 certication
,the
internationally
accepted Standard for
occupational health and
safety management. In
1994 the Company was
certies by the British
Standards Institute to
ISO 9002. In 2003 the
Company was certied
to the new standard BS
EN ISO 9001:2000.All
aspects of the companys
operations are included
under the scope of
registration. As part of
its social responsibility
to
the
community,
the Company is also a
major supporter of the
countrys cultural, social
and
sports
activities
such as Bahrain First
ceremony and Banagas
Desert Plants Garden.
In
2012
Banagas
was
awarded
ISO
14001:2004 certication
for
environmental
Management System.
When
the
Company
rst started operations
Bahraini
personnel
represented
48%
of
the
total
workforce.
However, in line with
the Companys policy
to create an efcient
and
highly
skilled
national workforce, vigorous development and training programmes
were implemented. At present the Bahraini workforce exceeds 90%
of the total workforce. The Company provides a wide range benets
to employees, including
interest-free
loans,
medical assistance, life
insurance, a saving plan,
medical insurance as well
as helping employees
to join local clubs and
participate in social and
sports activities.
BANAGAS was also a
proud winner of the Prime
Ministers
Award
for
Excellence in Industry in 1999. Strict criteria were used for granting this
Award including productivity, export, industrial safety and community
support. Consistently high levels of production have enabled substantial
annual contributions to be made to the Kingdoms revenue. Combined
with an outstanding occupational safety record which has received
international recognition has made BANAGAS one of the most successful
of the many projects implemented by the Government of the Kingdom
of Bahrain in its determined drive for growth and prosperity for all the
people of Bahrain.
2012
25
2012
Bahrain National Gas Expansion Company
26
The government of the Kingdom of Bahrain initiated a major

expansion project in the Bahrain National Gas Company
(BANAGAS) in 1988, by setting up the Bahrain National Gas
Expansion Company (BNGEC). The new company, commissioned
in 1990, was tasked with the objective of raising the gas production
capacity from 170 million cubic feet to 280 million cubic feet per
day. The project included the establishment of two new plants, a
gas extraction facility for LPG and naphtha and a cooling unit in
the storage area for pasteurization, the government bearing the
full cost. The National Oil and Gas Authority (NOGA), since its
establishment in 2005, has been applying modern management
tools to update and restructure of the oil and gas sector in the
Kingdom of Bahrain. The BANAGAS expansion project document
was signed in 2008, which designed BNGEC as a joint stock
company owned by the Bahrain government with a BD45 million
capital. The administrative and regulatory terms of BANAGAS
currently apply to BNGEC operations, as per the agreement
between the two companies.
2012
Gulf Petrochemical Industries Company was founded on 5th December 1979

as a nucleus for cooperation among Gulf Cooperative Council member states
for the manufacture of fertilizers and petrochemicals by utilizing Bahraini natural
gas as feedstock. The joint venture is equally owned by the Government of the
Kingdom of Bahrain ; Saudi Basic Industries Corporation, Saudi Arabia; and
Petrochemical Industries Company, Kuwait. The Companys Board of Directors
comprises of representatives from the three shareholders. Built on 60 acres
of reclaimed land on Sitra Island, the project initially consisted of two Plants:
Ammonia and Methanol together with their utilities.
The plants were commissioned in May 1985, each with a capacity of 1,000
metric tones per day. In 1989, their capacities were increased to 1200 tonnes
each per day. Due to its success in production and marketing of the products
and to capitalize further on the Ammonia, GPIC decided to expand its operations
and built a 1,700 metric tones per day Urea Plant that was commissioned
in 1998. This plant included its own utilities and Urea handling facilities to
export nest quality Granular Urea worldwide. GPIC continues to produce and
supply the world with more than 1.46 million tones per annum of high quality
products.GPIC prides itself with its excellent record in safety, continuous
production runs and environmental achievements. The Company has won
numerous awards, prizes and appreciation certicates locally, regionally and
internationally. Through its distinguished environmental projects, the Company
has proved that industry and the environment can harmoniously exist side by
Gulf Petrochemical Industries Company
27
2012
side. GPIC looks to the future as a distinguished producer and exporter of
quality petrochemical and fertilizer products to the whole world. To maintain this
unique status, considerable effort and investment has been made to upgrade
major plant equipment and modernize control and management systems at the
complex. Plans for expansion are also well under way to construct new mega
scale ammonia and urea plants in the coming years.
Management Approach: The One Team Concept
28
GPIC is proud of its employees and considers them as the most important
assets of the company. Whilst the executive management sets the vision,
goals, objectives and policies of the company, these elements are discussed
and explained to all levels and posted at key locations. The management team
also regularly publishes statistics that reect the Companys progress to all
staff, electronically and on notice boards. The one team spirit is propagated
throughout the organization on a daily basis through coordination meetings,
social activities inside and outside the complex and special functions.
The Management has also formed a number of committees such as the Safety
Committee, Health Committee, Environment Committee, Training Development
& Mentoring Committee, Social Activities Committee, Suggestions & Best
Practices Committee, Innovation & Patent Committee, Process Safety
Management Committee to name a few. All these committees work together
with each other to achieve the objectives set forth by the management of the
company.
The GPIC leadership is fully committed in its endeavors to synthesize the best
from world health, safety, security and social responsibility standards to build
a truly robust risk management regime. The companys management systems
are fully certied to ISO-9001 quality standard, ISO-14001 environmental
standard, the Occupational Health and Safety Management Systems OHSAS18001 standard and the Responsible Care Standard 14001. The company
has also acquired the ISO-27001 certication for its Information Technology
Security Management System. In addition to the above the company has also
complied with and fullled all the requirements of the non-certiable Bahrain
Corporate Governance Code, ISO 26000 Social Responsibility and Process
Safety Management Guidelines.
GPIC is also the rst petrochemical company in the Arabian Gulf to successfully
complete all the requirements and gain accreditation by the British Standard
Institute BSI for the PAS-99 (Publicly Available Specication) model, the worlds
rst Integrated Management System.
2012
GPIC is proud of its employees and considers them as the most important
assets of the company. Therefore, training and developing them is considered
as a top priority and a substantial amount of money has been invested in
the Bahrainisation and employee development programs since inception,
including the lean years when companys nancial resources were limited. The
percentage of Bahrainis in the company is currently in excess of 95% and
this percentage is rising annually. Since inception a considerable number of
Bahraini personnel have been trained to take up permanent senior positions in
the companys organization. In addition, the GPIC Academy of Leadership and
Learning arranges a large number of development courses every year to ensure
a well-educated workforce which is able to meet the rigorous demands
of the dynamic international petrochemical industry. At GPIC in-house training
is complimented by the use of local and international institutions, together with
company sponsorship of staff in local and overseas universities.
Training and Development :
29
Number of Trainees Annual Average
2012
30
The Academy of Leadership and Learning (ALL) at GPIC has state of the art
facilities to train its employees and keep them abreast of the latest developments
in the eld of petrochemicals. There is a top class theatre hall, a central library,
plant models, training simulators, audio visual centre, class rooms and the
more recently inaugurated E-learning centre which is the rst of its kind in the
entire Arabian Gulf region. In May 2009 GPIC won the Labour Ministry Award
for being the rst enterprise to be exempted from the occupational training
subscription fees owing to its outstanding record in training and development
of human resources in 2008. In 2009 the Company won the Award of the Best
Company in Using E-Learning Solutions in the Middle East. In May 2010 GPIC
won the Labour Ministry Award for being the rst enterprise to be exempted
from the occupational training subscription fees owing to its outstanding record
in training and development of human resources in 2009 for the second year
in a row.In November 2010 GPIC won the Award of the Outstanding Gulf
Company in the Localisation of Jobs and Development of Manpower by the
GCC Labour Ministers Council for the second time. In 2011 GPIC won the Best
Learning Life Cycle Management Award from Skill Soft, a leading company in
the eld of e-learning in the Middle East. The company is strongly committed
and believes in equal employment opportunities for both men and women.
The steps taken by the company in this regards are highlighted by the rising
numbers of women employees on the company payrolls every year.
Safety and Health
Safety assumes special importance in the petrochemicals
industry due to the nature of processes that employ
ammable gases, high pressures, electrical risks and the
presence of high-speed machines. For this purpose, GPIC
employs a stringent risk management policy that has
resulted in achieving more than 14 million hours without
any lost-time accidents. GPICs record of achievements in
safety is outstanding by all standards. The Company has
won eight consecutive golden awards from the Royal Society for the Prevention
of Accident (RoSPA) U.K. In 2001, GPIC won the international sector award
for the petrochemical industry from RoSPA. These achievements were further
complemented when GPIC won the prestigious Sir George Earle Trophy from
RoSPA in 2005, which is awarded to an organization for the most outstanding
Performance in Occupational Safety and Health worldwide. It is notable that
GPIC has become the rst organization outside Europe and North America to
be awarded with this prestigious Trophy. In the nal round of this award, GPIC
competed with international giants such as Shell, Toyota and General Electric.
In 2008, GPIC was awarded the Robert Campbell Safety Award from the
National Safety Council, USA in recognition for the companys strict adherence
to and constant developments of its occupational health and safety systems.
The company also won the highly acclaimed International Safety award from
the British Safety Council in addition to the 2008 Excellence Award in Chemical
Sector for Occupational Health and Safety from the Royal Society for the
2012
31
2012
Prevention of Accidents (RoSPA) UK. GPIC

Complex is supported by a modern health
centre managed by an experienced doctor,
assisted by qualied nurses and equipped
with the state of the art medical equipment.
The centre provides its services 24 hours a
day throughout the week.
32
These services include primary care, rst aid

and periodical checkups for all employees.
In addition to the facilities provided at the
Health Centre, since 2007 the company has
introduced a comprehensive health insurance
policy for not only the employees of GPIC
but also their families and dependents. This
facility provides for complete health coverage
throughout Bahrain and world over for GPIC
employees and their families. A large number
of the company staff has also been trained as
qualied rst aiders to assist the health centre
when needed. Furthermore, the centre in coordination with the labour union
regularly organizes blood donation campaigns to supplement reserves at the
Blood Bank of the Ministry of Health. The Management has also appointed
a Health Committee which regularly inspects the canteen premises and
other food outlets at the complex to ensure that highest level of hygiene is
maintained. The Committee also organizes a number of lectures annually to
cover various health issues.
Environmental Protection:
Since its inception, GPIC has felt the need for maintaining an environmental
balance. The projects environmental impact was thoroughly examined and
studied. All the necessary measures and steps were
taken to maintain such a balance. Although more
than 26 years have passed since the plants went on
stream, all the plants are still operating according
to the strictest local and international environmental
standards. The Urea plant, which came into operation
in 1998, was subjected to the same of environmental
review at the design stage. GPIC insisted on installing
a granulation process for the production of nal solid
product rather than the more conventional prilling
process despite the higher cost of construction and
2012
GPIC Environmental Projects:

1. Charity Garden: The company launched
its environmental program by setting up a
Charity Garden at the GPIC Complex. This
garden was established to produce fruit
and vegetables for donation to charities
for the underprivileged. A small decorative
garden next to the Administration building
has been converted to a 1,500 m2 vegetable garden which produces all types
of seasonal vegetables. These vegetables are distributed to needy families in
the immediate vicinity of the complex after harvesting. To date this garden had
produced in excess of 18 tones of vegetables for charity. Recently, fruit trees
and date palms have also been added to enhance the output of the Charity
Garden.To instill environmental responsibility into the hearts and minds of all
employees, 16,000 m2 of land within the GPIC Complex has been dedicated
for employees to plant their own trees. The result is a green oasis with 80%
of the trees donated by the employees and the remaining 20% planted by
dignitaries visiting GPIC premises. This project has raised the number of trees
planted at the complex to more than 4,700.
2. Fish Farm: With the aim of demonstrating environmental accountability,
setting a good example to other industries and replenishing dwindling sh
reserves in regional waters, the company embarked on constructing a sh
farm close to the sea water outlet in November 1996. Different kinds of tropical
sh found in Bahrains waters, like Black Sea Bream (Shim), Mullet (Meid) and
Rabbit sh (Saffee) are being reared and bred in the sh farm so that their
growth can take place in a congenial atmosphere. Later these sh are released
into the sea. GPIC management also ensures that some of the sh harvested
go to charity.
licensing. The choice of this technology has paid off and has resulted in
reduced emissions of urea dust. In 2007, The International Dilmun Award was
launched. This environmental award is sponsored by GPIC as part of the Royal
Society for the Prevention of Accidents (RoSPA) awards programme. The name
Dilmun was given to reect the history of Bahrain and in recognition of GPICs
commitment and contribution to safety, health and the environment In 2008,
GPIC became one of the rst Petrochemical companies in the Middle East to
embark on the 450 tonnes/day Carbon Dioxide Recovery (CDR) Project. The
project was initiated to cut down Green House Gas emissions and improve
the overall efciency of resources by having additional production of Methanol
and Urea at its complex.
33
2012
34
3. Bird Sanctuary: The evident improvement

in the environment around GPIC has
encouraged GPICs management to
further enhance its special focus on the
surroundings and especially Bahrains bird
life. The bird sanctuary was commissioned on
9th September 2001 where a small nesting
area and fresh pond have been created for
the birds to enjoy a natural habitant with a
view to improve the environment around the
GPIC complex.
4. Herbal and Medicinal Plants Garden:
To demonstrate the eco friendliness of
its operations, GPIC has implemented a
number of projects inside and outside its complex, the latest of which is the
Herbal and Medical Plants Garden inaugurated on 9th May 2005 under the
patronage of His Highness Shaikh Abdullah bin Hamad Al Khalifa, Governor
of the Southern Governorate and Chairman of the Public Commission for the
Protection of Marine Resources, Environment and Wildlife. Covering an area
of 1200m2, this innovative project was launched with the prime objective of
preserving indigenous herbs and plants that were once used by inhabitants to
treat various illnesses. The garden currently encompasses 20 types of herbs
and shrubs. This garden has also become a very useful platform for researchers,
school students and dignitaries . These efforts have contributed greatly to GPIC
winning several accolades including the GCC Environmental Award for the
Best Establishment Adhering to Environmental Legislation.
5. H.R.H Princess Sabika bint Ibrahim Al Khalifa Aromatic Plants Garden: In
March 2009 Her Royal Highness Princess Sabika bint Ibrahim Al Khalifa wife of
His Majesty the King opened the Aromatic Plants Garden at the GPIC Complex
bearing her name. This is a unique garden mainly designed to feature all the
perfumed aromatic plants and herbs in the Kingdom.
GPIC contribution to the National Economy
From the onset of production in 1985, GPIC has increased its protability year
after year and paid generous dividends to the shareholders.Local contractors
and suppliers are also given priority to supply and carry out services, thus further
invigorating the local economy. Moreover, GPIC also donates more than one
million US Dollars annually to

scientic research institutions,
charities, cultural and sport
activities. To complement
all the above, GPIC also
shares its experience with
other
organizations
and
institutions to modernize
education,
training,
safety and environmental
systems at the national
level, enhancing further its
support to the economy. The company is also well represented in the national
teams, committees reviewing and developing safety, training, education and
environmental legislation in the country.
Towards the Future
GPIC looks towards the future with condence and fervor. The management
strongly believes that their approach of a safe, reliable and protable industry
while at the same time taking responsible care of the environment at all
times, is a practical and successful model that will ensure a healthy future for
generations to come. GPIC has proven beyond doubt that a petrochemical
industry can successfully co-exist with high prole environmental care. New
developments and changes will come to the complex in the future but the
company shall keep following the proven path of sustainable development
to ensure maximum benet for the Kingdom of Bahrain, the people and the
environment.
2012
35
2012
Bahrain Aviation Fuelling Co. (BAFCO)
36
The aviation refueling service at Bahrain International Airport is provided

by the Bahrain Aviation Fuelling Company (BAFCO) a joint partnership
formed in 1985. The Oil and Gas Holding Company (OGHC) is its main
shareholder with a 60 %, while Chevron has a 27 % and BPME 13 % .
BAFCO is responsible for all refuelling operations at Bahrain International
Airport acting on behalf of its shareholders. However, OGHC, Chevron and
BP each market and sell fuel to the individual airlines on their own behalf
in separate sales operations.
BAFCO employs around 123 staff who work a three-shift system, catering
for a 24-hour coverage. The company is particularly proud of the fact that
the highly specialised nature of work involved is performed by 99 % of its
staff are Bahrainis.
The grade of aviation fuel supplied by BAFCO is more commonly known
as Jet A-1. This is produced to international specications by the Bahrain
renery, approximately 18 km from the airport. The fuel is then pumped
from the Sitra tanks through a dedicated pipeline to reception tanks at
BAFCOs tank farm at Arad.
2012
From 1998, BAFCO has been recognized for its Operations Excellence
with a total of 11 separate annual awards from Air BP or Chevron, with the
most recent being presented in 2009 & 2010.
In 2007, the company was awarded the G.C. Council of Minister of Labour
and Social Affairs Award for localization and Bahrainisation of jobs.
Aviation is a major element of international
transport, and safety is a prime concern.
Aircraft fuelling is a vital link in the system
and to uphold aviation safety standards it
is essential that aviation fuel is subjected to
stringent quality control procedures and that
the maintenance of equipment meets the
highest possible levels.
The training and development of personnel in
the professional execution of their duties is the
key to a safe and efcient service. All BAFCO
staff are required to undergo regular refresher
courses each year, regardless of their duties.
In 1997 BAFCO was awarded the (ISO 9001) Quality Assurance Certicate
by the British Standards Institute (BSI) and since then it has successfully
continued to improve and is currently certied to the latest, 2008 edition.
37
2012
Bahrain Lube Base Oil Company
38
Bahrain Lube Base Oil Company (BLBOC) is a joint venture

company with three shareholders: nogaholding and Bapco owns
55% equity and Neste Oil Company of Finland with 45% equity.
This was considered the rst company of its kind in the region.
The company was created in 2009 to build a US$ 430 million plant
and associated export facilities at the Bapco Renery, referred
to as Lube Base Oil Project (LBOP). While Bapco operates and
maintains the plant on behalf of JV, Neste Oil lifts and markets the
products from this facility. This project is a strategic t between
the joint venture partners enabling them to meet their long term
objectives. BLBOC will manage and operate the joint venture
through its partners nogaholding/Bapco and Neste Oil.
This project is in line with the directives of the Kingdom of Bahrain
as part of the strategies of Vision 2030, and a landmark in latest
technologies in industry. The project is one of the key strategic
goals in Kingdom of Bahrain, as it is designed to produce up to
400,000 metric tons per year of Group III, Very High Viscosity
Index (VHVI) Lubricant Base Oils. The Group III Lubricants Base
Oil products, which will meet the next generation of lubricant
2012
The LBOP Project Inauguration Ceremony was organized on 29th

November 2011 under the patronage of His Royal Highness,
The Prime Minster Prince Khalifa Bin Salman Al-Khalifa. Product
shipments to international markets have commenced.This project
has created opportunities for development of local talent. Not
only were several stationary equipment manufactured locally in
Bahrain to the highest global standards, this project has resulted in
providing job opportunities for national cadres. The project sought
assistance of Bahraini contractors who employed over 200 Bahraini
cadres in the project, and 14 Bahrainis were trained to operate the
unit at highest professional standards.The safety milestone of 10
million man-hours was achieved without Lost Time Incident during
the execution of this mega project.
performance and environmental standards, are in increasing

demand in Europe and North America.The world scale facility
was built under an Engineering, Procurement and Construction
(EPC) contract by Samsung Engineering Company Ltd (SECL) of
Korea.
39
2012
Tatweer Petroleum
40
Tatweer Key Achievements in 2011

Average total Field production in 2011 was 42,500 (Versus 31,900 bpd in
2010).
Black oil production exit rate 41,700 barrels at end-2011 (Versus 2010:
33,700 bpd in December).
165 new oil and 1 deep gas (Khuff) wells put on production (Versus 2010:
25 oil wells and 3 deep Khuff gas wells).
Average Black Oil production of 38,000 barrels per day (Versus 2010:
27,300 bpd).
1.9 billion cubic feet of non-associated gas average capacity available for
the year (Versus 1.5 billion for 2010).
Total annual committed spend of US$1.4bn (Versus 2010: a spend of
US$345 million).
2 new H&P oil rigs, 3 new work-over rigs, and 1 new rapid service rig
contracted.
Well work executed in 2011 was 137 rig jobs, 323 stimulations (Versus
2010: 245 rig jobs, 194 stimulations).
Rubble Steam injection pilots commenced.

New associated gas compression plants commissioned with capacity
of 130 MMSCFD.
88 wells converted from gas lift to beam lift in addition to 103 wells
converted in 2010.
2 new Gas Dehydration Units installed and commissioned.
3 electricity substations constructed.
Maintenance, repairs and upgrades totaled over 500,000 man hours
of work (Versus 2010: totaled 315,000 man hours of work).
Time to Market reduced to 8 days from 10 days in 2010.
Headcount increased to 747 (from 624 in 2010), 62% of them are
Bahrainis.
Total of 106,200 training hours delivered (While 49,000 training
hours delivered in
2010).
Digital
canopy
(wireless) covering
Bahrain Field fully
deployed.
New
automated
systems for well
management,
maintenance
and
inspection.
Interim central control room and disaster recovery site operational.
Second Environmental Baseline Survey initiated.
Tatweer Health Safety & Environmental Achievements in
2011 :
One Million Work Hours Award from the U.S. National Safety
Council received .
2012
41
2012
Combined Injury & Illness Report (IIR) of 0.36 versus Plan of 1.0
3.6 million man-hours without Lost Time Accident (LTA) for
Contractors
Contractors Safety Forum & on-boarding program implemented .
Risk Reduction measures implemented
Emergency Response Plan tested and optimized .
Health Safety & Environment Day & Tatweer Health Campaign
reached over 1,200 participants .
42
Health Safety & Environment Management System:

Half of Grace Period Assessment .
Externally validated by DNV and found adequate in meeting ISO
14001.
Environmental Base Line -1 completed .
LNO obtained from GDEWP for 14 additional projects .
2011-2012 Camping Season campaign launched .
Hand Safety Campaign launched.
2012
Skaugen Gulf is a Bahraini closed shareholding company. It was
incorporated on 1st October 2009 and its commercial registration

number is 72945. The name of the company is Skaugen Gulf
Petchem Carriers B.S.C followed by the expression Bahrain Joint
Stock Company (Closed) or the initials B.S.C.(c). nogaholding
share 35% of capital, while I.M.Skaugen has 35% and 30% for
Capital Management House.
The company is registered to operate as a ship owning company in the
Kingdom of Bahrain and is involved in leasing and owning specialized
ships. The target operational market for the companys eet is the
shipping of liqueed gases including Ethylene, Propylene, Natural
Gas and other feedstock gases from prominent manufacturers in the
Arabian Gulf to various destinations, mostly in Asia. Norgas Carriers
AS, a subsidiary of I.M.Skaugen SE, is operating Skaugen Gulfs eet
along with other vessels in Norgas eet portfolio.
Milestones and Achievements
Skaugen Gulf has the ambition of becoming the largest private
regional company in the eld of specialized transportation of liqueed
gases. It will target to position itself as a strong service provider in
the shipping industry.
Skaugen Gulf Petchem Carriers (SGPC)
43
2012
The following are highlights of the Skaugen Gulf Concept:
- Ownership of a eet of liqueed gases shipping vessels with medium to

large shipping capacity (8,000 17,000 cubic meters).
- Although starting with used vessels, the target is to own a modernized eet.
- Benet from I.M.Skaugen SE & Norgas long and strong track record in
managing operations in this highly specialized shipping sector.
- Further strengthening the existing positive relationships that
I.M.Skaugen SE and Norgas are having with main customers in the
Gulf and marketing services to new potential customers.
44
To achieve its business ambition, Skaugen Gulf started by acquiring two

vessels. I.M.Skaugen SE leased Skaugen Gulf 2 ships. The 2 ships are
currently operating within Norgas Pool and are highly protable.
Moreover, SGPC supported the Bahrains commitment to delivering
energy requirements in alignment with the Kingdoms 2030 vision by
hosting the formal naming ceremony of the multi-gas vessel Bahrain
Vision, at Khalifa bin Salman Port on 14 November 2011.
Bahrain Vision, a USD55 million state-of-the-art specialist multigas carrier,
is owned by I. M. Skaugen SE, a stakeholder in Skaugen Gulf Petchem
Carriers (SGPC). These new generation carriers will trade worldwide for
the marine transportation of Liqueed Natural Gas (LNG) and Liqueed
Petroleum Gas (LPG) with SGPC poised to fulll the requirements of the
regions fast-growing petrochemical sector.
2012
The ceremony was hosted under the patronage of and attended by HRH
the Prime Minister Prince Khalifa bin Salman Al Khalifa, several ministers,
ambassadors, government ofcials, VIPs and members of the business
community.
Moreover and based on the environmental changes and the future

development, LNG is becoming the energy source for the future.
Crude oil and thus
the
derivative
products such as
diesel and heavy
fuel oil is much
too
valuable
a
commodity
to be used for
transportation and
power generation
and should be used
by the petrochemical
and life sciences
industries instead,
and thus makes it
important also for
SGPC to become an
Energy Transporter also covering LNG.
As an integral part of SGPC strategy, we are focusing on developing
a LNG infrastructure, enabling Bahrain to use LNG instead of oil and
open up Khalifa Bin Salman Port as a re-distribution hub of LNG to the
region.
Since the world is realizing the move towards extracting and using the gas
as an alternative to Crude oil, there has been scarcity in nding vessels
to transport the same. SGPC plan is to acquire (lease/buy) a eet to
support its business objective, but it hasnt been easy to nd the suitable
vessels in the market to t strategically with SGPCs exist sing eet and
its business objective. However, lately and due to intensive and rigorous
efforts by our partner, SGPC is evaluating a proposal to acquire 3 Ethylene
LPG/C vessels that will give excellent trading opportunity to SGPC.
Potential Challenges:
The petrochemical industry in the GCC has grown signicantly over the
last decade, and SGPC has since its inception in Bahrain, been in a position
to capitalize on this growth via its assets securing the transportation
needs of the petrochemical exporters in the region.
45
2012
OIL & GAS Statistics
2007-2011 (Million Barrels)
DETAILS
46
2007
2008
2009
2010
2011
1-CRUDE OIL
67.262 66.865 66.510 66.376 69.452
BAHRAIN FIELD
12.552 12.027 11.750
ABU SAAFA FIELD
54.710 54.838 54.760 54.741 53.936
IMPORTED CRUDE
83.112
2-GAS*
507.671 538.233 543.425 556.642 552.118
3-REFFINERY
97.904 96.367 95.598 99.362 96.026
4- LIQUIDS OF GAS
3.503
3.568
3.589
3.771
3.933
PROPANE
0.944
0.949
0.952
0.999
1.044
BUTANE
0.896
0.920
0.907
0.937
1.002
NAPHTHA
1.663
1.699
1.730
1.835
1.887
1.373
1.545
1.534
1.476
1.575
AMMONIA
0.417
0.474
0.470
0.429
0.458
METHANOL
0.371
0.410
0.410
0.418
0.443
UREA
0.585
0.661
0.654
0.629
0.674
5- PETROCHEMICAL**
* BILLION CUBIC FEET

* * Million METRIC TONS
11.635
15.516
82.894 81.895 85.658 79.263
2012
Year
Natural
Associated
Total
2007
407.755
99.916
507.671
2008
435.890
102.343
538.233
2009
440.640
102.785
543.425
2010
451.351
105.291
556.642
2011
446.766
105.351
552.117
DISTRIBUTION OF GAS CONSUMPTION

For 2011
RE-INJECTED
15%
OTHERS
47
GPIC
7%
8%
BAPCO
9%
ALBA
24%
THE ELECTRICITY & WATER AUTHORITY
37%
Production of Gas (Billion Cubic Feet)
2012
PETROLEUM PRODUCTS EXPORTS
2007 - 2011
48
(Million U.S. BARRELS)
DETAILS
2007
2008
2009
2010
2011
PROPANE
0.146
0.236
0.229
0.529
0.341
BUTANE
0.249
0.454
0.339
0.358
0.543
NAPHTHA
13.668 14.332 14.132 15.409 14.798
GASOLINE
2.253
2.988
1.822
1.724
0.758
KEROSENE
0.849
0.744
0.209
0.139
JET FUEL
17.151 15.425 16.414 19.371 19.693
DIESEL
33.402 29.437 29.551 29.501 26.314
FUEL OIL
15.692 14.627 15.619 15.435 17.559
SULPHUR
0.198
0.339
0.433
0.744
0.471
0.074
2.982
3.012
2.596
2.393
1.978
0.314
LUBE BASE
OIL
ASPHALT
FEED
STOCK
TOTAL
DAYLIY
EVERAGE
86.904 81.594 81.344 85.603 82.529

0.238
0.224
0.223
0.235
0.226
1000 US BARRELS
CRUDE OIL
PETROCHEMICAL
GAS LIQUIDS
REFINERY
PRODUCTION 2007 - 2011
2012
49
1000 US BARRELS
JAYYED
L. P . G.
hdG RZ
G
MUMTAZ
ASPHALT
DIESEL
KEROSENE
JET FUEL
GFdG Obh
G SG 2007 - 2011
- 2007
LOCAL
CONSUMPTION
50
jeCG eH e
2012
2012
BAHRAIN AIRPORT SALES
2007-2011
1000 US BARRELS
BAHRAIN EXPORTS OF PETROLEUM PRODUCTS

2007 - 2011
51
100,000
90,000
80,000
70,000
60,000
50,000
40,000
30,000
20,000
-
jeC
eH dCG
1000
USG BARRELS
RdG FGS
GAS LIQUIDS
jhchdG
PETROCHEMICAL
dhdG G
PET,PRODUCTS
2007
3,623
6,491
91,500
2008
3,744
7,038
81,594
2009
3,577
7,505
81,344
2010
3,533
6,977
85,603
2011
4,093
7,2427
82,529
2012
Oil and Gas Agreements
1.Exploration and Production Sharing Agreements in

Offshore Blocks
52
The offshore area in Bahrain was divided into four blocks. NOGA
has awarded Blocks 1, 3 and 4 to the US based Occidental
Petroleum and Block No. 2 to PTTEP from Thailand.
The drilling operations by Occidental Petroleum are the result of
the EPSA signed between NOGA and the company for offshore
Block 1, 3 and 4. Occidental has completed the geological and
geophysical studies and performed seismic surveys in Block 4.
Geological maps have been developed to identify locations for
drilling.
Drilling by Occidental is expected to continue over the next
months in the offshore blocks, with an exploratory well in each
block, beginning with Balaj 1 in Block No. 4, Mashtan 1 in Block
No. 3 and Ammari 1 in Block No. 1. PTTEP is expected to start
drilling by mid 2012 in Block No (2).
2.Final Deep Gas Agreement
In February 2011, an agreement was signed to participate in the
exploration and production of deep gas between NOGA and US
company, Occidental.
The agreement is in line with the directives of His Majesty the King
and Bahrain Government to provide gas supplies for industrial
uses and power generation in the Kingdom. The deep gas project
is one of the 12 initiatives launched by NOGA for optimal utilization
of the nations natural resources. Bahrain will seek to explore gas
in the deep layers of the Bahrain Oileld through relevant stateof-the-art technology. Exploration will last for seven years divided
into two phases, four years and three years.
The rst phase of this new deep gas exploration project will start by
conducting geo-engineering studies to identify the potential deep
gas reservoirs and to rationalize drilling and testing operations.
This will be followed by drilling three exploratory wells at a depth
of 18,000 feet and a fourth well during the second phase of
exploration.
2012
53
2012
Bahrain and Organization of Arab Petroleum Exporting Countries (OAPEC)
54
Arab Petroleum Exporting Countries (OAPEC) was Formed

in January 1968 consisting of ten Arab oil exporting countries
which are United Arab Emirates, Kingdom of Bahrain ,
Algeria, Kingdom of Saudi Arabia , Syria ,Iraq , Qatar, Kwait ,
Libya ,and Egypt. The Kingdom of Bahrain joined OAPEC in
1970 and had the privilege to chair the Council of Ministers
of OAPEC during 2011 held in Cairo 24th December 2011.
OAPEC aims at combining co-operation of the member
states in enhancing and developing the Arabian Oil Industry through the exchange
of expertise and information. It tends to give opportunity of training work and
utilization of the resources of such countries and its potentialities to establish
joint venture projects in various activities related to such a vital industry. From
the beginning OAPEC undertook to constitute a judicial body. to settle conicts
and disputes among its members in peaceful ways. The following are companies
and organizations, which have been formed by OAPEC and are contributed to
by the Kingdom of Bahrain. OAPEC is organized in cooperation with the League
of Arab States, the Arab Fund for Economic and Social Development, the Arab
Organisation for Industrial Development and Mining Arab Energy Conference,
which is held every four years.
2012
Arab Marine Petroleum Company (AMPTC)
The company currently has 11 tankers ( Crude oil - 4, Rened products - 3, Liquefy
gas - 4). The company consistently remains technologically advanced and increases
its eet to keep pace with the latest international legislations. It is now considering
an immediate plan to replace tankers built in the nineties with new tankers. These
tankers are as the following: Umm Shaif Tanker, Aisha , Zirku Tanker, Album Tanker,
Zallaq Tanker, Aldawha Tanker , Shayba Tanker, Gas Alkhaleej Tanker, Ocean Gas
Tanker , Alburaq Tanker and Sea legend Tanker. The company is currently building
(2) more tankers.
Arab Shipbuilding and Repair Yard Company (ASRY)

Arab Shipbuilding and Repair Yard Company (ASRY) This was founded in December 1974 with its headquarters in Bahrain and with an authorized capital of US $
340 million. The main objective of ASRY is to carry out all the operations related
to the shipbuilding, repairs and maintenance for all kinds of ships, oil tankers and
all other marine transport means specied for the carriage of hydrocarbons. Other
operation carried out by ASRY are the repair of industrial and electrical equipment
and apparatus steel structures and marine high pressure tanks. In 1991 there was
a new launch for the Company when it commenced the new expansion through the
purchase and installation of two oating docks which would rank ASRY as one of
the biggest ship building companies in the world. In December 2011 , ASRY celebrated the 35th anniversary of its establishment. The inaugural ceremony of the
expansion of the company was held under the patronage of His Majesty the King
Hamad bin Isa Al-Khalifa at the company headquarter in Al-Hidd and was opened
by Crown Prince H.R.H.Prince Salman bin Hamad Al-Khalifa .
Arab Petroleum Investment Corporation (APICORP)

APICORP was incorporated on December 1974 with an authorised capital of US $
1.25 billions and with its headquarters in Dammam, Kingdom of Saudi Arabia. The
most important objective of APICORP is to contribute in nancing the projects in
the petroleum industry and other associated or integrated activities to such projects
and industries with priority given to Arab joint ventures.
This was formed in January 1973 with its headquarters in the State of Kuwait
with an authorised and subscribed capital of US $ 500 million. The main objective
of AMPTC is to undertake all the marine transport of hydrocarbons. Moreover,
AMPTC has contributed in the training of many Bahraini students in the area of
marine transport in specialised college at Alexandria and UK.
55
2012
Arab Chemical Detergent Co. was developed from APICORP with its headquarters
in Iraq.This company contributes in many companies and projects operating in the
oil and gas sector. The company opened one ofce in the Kingdom of Bahrain.
Arab Petroleum Services Company (APSC)
56
Founded in January 1977 with an authorised capital of LD. 100 millions and its
headquarters in Tripoli in Libya. The main objective of APSC is to undertake the
petroleum services through the creation of specialised companies in one of more
areas of petroleum services.Various specialised companies were eminated from
APSC:
1.Arab Well Drilling & Maintenance Co:

Founded in 1980 with its headquarters in Libya. The Company is specialised in the
scope of drilling and maintaining oil, gas and water wells. The capital of this Company is US $ 40 millions. Moreover, Arab Petroleum Services (APSC) owns 40%,
Arab Petroleum Investment Corporation (APICORP) 20%, and for Santa 40%.
2. Arab Well Logging Co:

Founded in 1983 with its headquarters in Iraq and an authorised capital of $20
million. This company is wholly owned by Arab Petroleum Services Company
(APSC). Its main operations are the exploration of wells and other associated
services.
3. Arab Geophysical Exploration Co:

The company was formed in 1985, the capital is LD. 4 million. Arab petrolum
services owns 40%, Apicorp 10%, National Petroleum Corporation ( Libya) 10%
and Geo - Source 40%.
Arab Petroleum Training Institute (APTI)

APTI was formed on 9th May 1978 with its headquarters in Baghdad, Iraq for the
purpose of the preparation of trainers and other administrative, technicans and
managers in various oil elds. Many of the specialists and trainers in Bahrain Oil
Companies and government institutes took part in APTl's courses.
2012
Bahrain and Organisation of Petroleum Exporting Countries (OPEC)
On 10th September 1960, the
OPEC, was founded by those states possessing abundant oil production in

the world markets i.e. Saudi Arabia, State of Kuwait, Iraq, Iran Venezuela
and later on, Algeria, Libya, Qatar, U.A.E. (Indonesia, Gabon), Nigeria and
Ecuador.
OPEC has played an important role in various occasions to effect the
control of petroleum rates and markets .
Despite the fact that Bahrain is not a member of this organization, it
continues to track all its activities and to co-ordinate with the Gulf and Arab
members and also throughout organization of Arab petroleum Exporting
Countries (OAPEC) for the benet of all.
His Excellency Dr. Abdul Hussain bin Ali Mirza, participated in the OPEC
Ministerial Meeting No.155 held in Angola on December 22, 2009. The
participation, the rst of its kind for Bahrain, was following an invitation to
HE the Minister to represent Bahrain at the meet from HE the Secretary
General of OPEC.
The Kingdom of Bahrain delegation headed by HE Dr. Abdul Hussain bin
Ali Mirza Energy Minister , will take a part of the 5th International Energy
Seminer organized by OPEC in Vienna during the period of 13 -14 June
2012.
Organisation of Petroleum Exporting

Countries (OPEC) was incorporated
with various objectives including
the necessity for the stability of oil prices and the control of production
throughout the most favourable equal distributive quota of production,
coupled with the assurance of supplies to the petroleum consuming
countries.
57
2012
COMPARISON TABLE BETWEEN

OAPEC AND OPEC
Particulars
58
Organisation of Arab Petroleum Organisation of Petroleum

Exporting Countries (OAPEC) Exporting Countries (OPEC)
Established on
9 January 1968
10 September 1960
Location
Kuwait - State of Kuwait
Vienna - Austria
Founders
Saudi Arabia-Kuwait-Libya
Saudi Arabia,Kuwait, Iraq, Iran

Venezuela
Members
Organisation
Saudi Arabia, Kuwait, Iraq,

Saudi Arabia, Kuwait, Iraq,
Bahrain,Qatar, United Arab Iran,Venezuela, Algeria,Libya,
Emirates, Egypt,Libya , Syria,and Qatar,United Arab Emirates,
Algeria,(Tunisia Inactive member) Nigeria, Ecuador & Angola
1- Ministerial Council
2- Executive Bureau
3- General Secretarial
1- Conference
2- Governors Council
3- Economic Commission
Price Stabilities - Production

Co-Operation & Co-Ordination
Objectives
Control Assurance of Petroleum
Maximum Utilisation of Petroleum
Supplies to Consuming Countries
2012
Kingdom of Bahrain and the International Energy Forum
launched in 1991 in Paris with the objective to provide an opportunity for

dialogues and discussion between high-level producers and consumers
of oil, work to develop an understanding of energy issues internationally,
strengthen relations between producers and consumers and to study the
links between energy, environment and economic growth. The Energy
Forum serves as an important voice to meet the producing and consuming
countries; national and international oil companies as well as international
organizations concerned with oil and energy affairs.
The forum is important as it comprises organizations concerned with
the interests of consumers such as the International Energy Agency. Oil
producing countries and OPEC are both working with the International
Energy Forum to meet the challenges of the future and the benet of rights
of oil producer and consumer countries alike.
The headquarters of the Secretariat for the forum is in Riyadh the capital
of Saudi Arabia. The Secretariat is working to nd a complete and accurate
information base, initiate studies and research and contribute to the
organization of the International Energy Forum in cooperation with the host
country.
Kuwait hosted the International Business Energy Forum in March 2012,
where the Kingdom of Bahrain participated with a delegation headed by
Minister of Energy Dr. Abdul Hussain bin Ali Mirza. The Minister highlighted
the achievements of NOGA since the issuance of Royal Decree No. (63)
for the year 2005 and future plans for the development of oil and gas sector
at the forum.
The Kingdom of Bahrain is a member of the International Energy Forum

and participates in the forum held every two years. The forum was
59
2012
60

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His Royal Highness

Prince Khalifa bin Salman Al Khalifa

His Royal Highness

OIL & GAS / FACTS & FIGURES

OIL & GAS / FACTS & FIGURES

Introduction by H.E.The Minister of Energy ...................................................

Oil & Gas Sector Organization Chart .......................................................

National Oil & Gas Authority (NOGA) ....................................................

Bahrain Petroleum Company (BAPCO) ..................................................

Bahrain National Gas Company (BANAGAS) .......................................

Bahrain National Gas Expanstion Company ..........................................

Gulf Petrochemical Industries Company (GPIC) .....................................

Bahrain Aviation Fuelling Co. (BAFCO) ..................................................

Bahrain Lube Base Oil Co. .........................................................................

Tatweer Petroleum Co. ................................................................................

Skaugen Gulf Petchem Carriers Co. .........................................................

Oil & Gas Statistics .....................................................................................

Oil & Gas Agreements ................................................................................

Bahrain and Organization of Arab Petroleum Exporting Countries (OAPEC)

Bahrain and Organisation of Petroleum Exporting Countries (OPEC)

Bahrain and the International Energy Forum .........................................

OIL & GAS / FACTS & FIGURES

OIL & GAS / FACTS & FIGURES

OIL & GAS / FACTS & FIGURES

General view of Gulf Protochemical Industries Company (GPIC)

OIL & GAS / FACTS & FIGURES

OIL & GAS / FACTS & FIGURES

OIL & GAS / FACTS & FIGURES

National Oil and Gas Authority

OIL & GAS / FACTS & FIGURES

OIL & GAS / FACTS & FIGURES

Block 2 tenders were awarded to PTTEP of Thailand. Furthermore, in the same

The third year witnessed the completion of several regulatory legislations

OIL & GAS / FACTS & FIGURES

OIL & GAS / FACTS & FIGURES

This year, among the 12 initiatives launched by NOGA for conservation

nogaholding was established by Royal Decree No. 77 of 2007,

OIL & GAS / FACTS & FIGURES

The Bahrain Petroleum Company (BAPCO)

OIL & GAS / FACTS & FIGURES

Energising The Nation

Bapco (CLOSED COMPANY)

OIL & GAS / FACTS & FIGURES

Environmental protection plays as an important part in the companys

OIL & GAS / FACTS & FIGURES

TRAINING AND DEVELOPMENT

OPENING OF GAS DELIVERY SYSTEM TO AL DUR POWER

OIL & GAS / FACTS & FIGURES

monitoring form BAPCOs ongoing commitment to the prevention

OIL & GAS / FACTS & FIGURES

SUCCESSFUL MIGRATION OF IN-LINE BLENDING DISTRIBUTED

OIL & GAS / FACTS & FIGURES

units). Currently the efuent from primary treatment facilities meets

OIL & GAS / FACTS & FIGURES

Tank Farm Control Building and ROP Ofce. Taking advantages of

BAPCO established by Standard Oil Company of California.

1981 BAPCO reconstituted as a joint venture rening company

OIL & GAS / FACTS & FIGURES