Bahrain is a vital country in the development of oil across the Arabian Gulf. The country was home to the first oil well developed across the region, and so has long played a strategic role in developing Bahrain’s oil industry on both local and international scales. To oversee this expanding industry, Bapco Refining was established by the government of Bahrain to oversee the country’s oil and gas sector and deliver significant economic benefits for the country for many years to come.
Established in 1929, Bapco Refining began its operations with the discovery of vast oil potential in the region. From this first vital discovery, Bapco Refining, originally owned by the Standard Oil Company of California and now under the ownership of the Government of Bahrain, quickly took the lead in pioneering the country’s oil and gas sector. Today, the company is responsible for refining 267,000 barrels per day (bpd) of oil, and through this work, it strategically empowers and ensures the success of Bahrain’s energy industry. Throughout every aspect of its operations, Bapco Refining remains focused on leveraging its best practices to deliver significant value for its shareholders, customers and employees in the process.
Bapco Refining’s operations centre around the refining, storage and marketing of oil, with a 6th of the company’s total oil operations stemming from the rich oil deposits found in Bahrain alone. The rest of the oil refined by Bapco Refining is sourced from Saudi Arabia and is pumped through Bapco Refining’s facilities before it is stored in 170 storage tanks located across Bahrain. All of the oils delivered by Bapco Refining are marketed towards local and international downstream markets in the form of petroleum and exported on behalf of the Government of Bahrain. The entire operation of Bapco Refining aims to support Bahrain’s role in the development of its crude oil markets across the world.
Now almost a century since it began, Bapco Refining has set out on the Bapco Modernisation Programme (BMP) which will see the multi-billion-dollar venture significantly shake up the country’s oil industry to meet the needs of today and set up the foundations so that Bahrain can remain a key oil producer for many years to come. BMP aims firstly to increase Bahrain’s refining capacity to produce more products that can be sold both in and outside of the country. A key part of this is to ensure that Bapco Refining’s operations can meet an increasing oil demand, whilst also improving the energy efficiency of its operations to enhance its oil output. This aims to help maintain Bahrain’s competitive edge in international markets.
The project aims to set up 21 new operating units, 15 new substations as well as hydrocracking units, a new crude and vacuum unit and a sulphur plant. A key part of the development is the construction of the Resid Hydrocracking Unity (1RHCU), which will be powered by a technology license from Chevron Lummus Global. The unit will be among one of the largest on the planet, encompassing a two-train capacity of 65,000 bpd, which will convert 78% of vacuum resid feed into intermediate production which will be processed to produce kerosene and diesel. In addition to the RHCU, a second VGO Hydrocracking Unit is planned which will receive raw feed from the new and existing crude distillation units and covert the product in the higher margin final products.
In addition to the hydrocracking units, the BMP will implement a vital upgrade to Bapco Refining’s facilities including a Crude Distillation Unit and a Vacuum Distillation Unit. These will replace the existing crude and vacuum distillation units that have been in operation for almost 80 years. The new units are designed to provide the required feedstock for further downstream processing supported by their new maximised output capacity that aims to optimise yield performance which reduces the amount of energy used to operate. The units will transform crude oil into valuable petroleum products such as LPG, naphtha, kerosene and diesel. The remaining oil not used to produce the petroleum products, will then be fed into the hydrocracking units for further processing.
The final vital part of the BP is the development of the #3 Sulphur Plant, which will treat sulphur recovery, amine and sour water. It will encompass 11 separate integrated process units and will recover hydrogen sulphide from the BMP Units’ process and turn it into liquid sulphur. This liquid sulphur is then converted into solid pastilles which can then be exported to other countries. The plant will cover three Sulphur Recovery Units (SRUs), two Tail Gas Treating Units (TGTUs), two Bulk Acid Gas Removal Units (BAGRUs), two Amine Regeneration Units (ARUs) and two Sour Water Stripping Units (SWSs), leading to a total sulphur production installed capacity of 1,535 metric tons a day.
As we have seen, the BMP aims to significantly step up Bahrain’s oil production capacity to bring vital petroleum products to market and solidify its place within the international energy marketplace. This vital investment into the country’s energy industry underlines the government of Bahrain’s commitment to delivering vital economic development across the Kingdom, whilst establishing itself as a key contributor towards the country’s GDP for the benefit of all those living in Bahrain.
This commitment to developing the future of global energy industries was reinforced with the announcement of a vital partnership between Bapco Refining and TotalEnergies in July. The global Bapco Energies recently signed an agreement with TotalEnergies announcing a strategic partnership agreement between the two companies for the trading of petroleum products. The agreement marks a vital milestone between the two companies, as well as with the Kingdom of Bahrain, and aims to cement Bapco Refining’s place within the international energy markets.
The partnerships hope to create substantial value for both companies, bringing together Bapco Refining’s oil networks, with TotalEnergies’ expertise in the petroleum trading market. Together, both companies aim to utilise each other’s networks to expand their reach and influence across the global market. Furthermore, the partnership will also aim to bring social and economic development across the partnership to deliver significant economic benefits for locals in the process.
This agreement comes following the two companies announcing in March that TotalEnergies would support Bapco Energies in the optimisation of its Sitra refinery. The refinery is currently undergoing an expansive upgrading project, and once completed will be future optimized across the partnership for the trading of its petroleum products. TotalEnergies will utilise its global oil and feedstock networks, as well as expertise across the refining and trading oil market to help Bapco Refining maximise its value from the Sitra refinery for Bahrain.
Mark Thomas, Group CEO of Bapco Energies outlined that the collaboration between the two companies will “bring incremental value to the Kingdom of Bahrain and Bapco energies through the application of TotalEnergies’ global expertise in product trading and feedstock optimization.”. Thomas continues, “We are looking forward to partnering with TotalEnergies to building the Bapco Energies brand as a reliable and trusted global supplier of quality products”. We can see from Thomas’ comments that this strategic partnership is one that aims to deliver significant value for Bahrain’s oil industry, and so meets the commitments laid out by Bapco Refining in positioning Bahrain’s oil as a key player in the global oil and energy markets.
Overall, we have seen how Bapco Refining remains a vital company set on delivering significant economic and social value for the Kingdom of Bahrain through its strategic partnership with global players in the energy industry such as TotalEnergies, as well as in its current modernisation programme which looks set on bringing the vital infrastructure needed to supper the country’s energy demand of today, whilst actively working to protect the world of tomorrow.
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