The Development of Oil Industry in Bahrain Past, Present & Future By H.E. Dr. Abdulhussain Bin Ali Mirza Minister of Oil & Gas Affairs Chairman of National Oil & Gas Authority (NOGA) Bahrain India Society May 26, 2009 Manama – Kingdom of Bahrain
The beginning of the oil era in the Kingdom of Bahrain <ul><li>1840 - The first geological survey was conducted in 1840 by Captain Constable on behalf of the Geological Survey of India. </li></ul><ul><li>1908 – “The strata which overlie the Jebel Al-Dukhan beds are admirably adapted lithologically for storing petroleum” G.E. Pilgrim </li></ul><ul><li>1904 - 1905 – First Geological Exploration for petroleum deposit by the Geological Survey of India. </li></ul>
Early geology work shows similar oil trapping potential on both sides Ain El-Qar next to Jabel Al-Dukhan in Bahrain is an ancient oil seepage that the team of the Indian Geological Survey made excavation around it. Similar seepage was seen in Jabel Al-Dhahran area in Saudi Arabia. JEBEL DUKHAN AIN EL QAR CIRCLE OF CLIFFS JEBEL EL DHAHRAN
A copy of the map used by Major Holmes during negotiations for oil concessions in Bahrain ,Al Hassa , Kuwait and Qatar during the early 1920s.
Bahrain Concession Contract On December 2nd, 1925, Bahrain signed an Oil Exploration Concession Agreement with Eastern and General Syndicate. This concession contract marks the beginning of a new era in Bahrain history.
<ul><li>Holmes transferred the interest to Gulf Oil Corporation in 1927. </li></ul><ul><li>Gulf Oil sold its interest to the Standard Oil of California (Socal) in 1928. </li></ul><ul><li>This led to the formation of the Bahrain Oil Company (Bapco) on January 1929 in Canada. </li></ul><ul><li>The Red Line Agreement was signed in 1928 </li></ul>
Beginning of the refining industry in Bahrain While finding oil is the most important part of the exploration process, no one could ignore the need of getting it to the market. Bahrain refinery was essential for this step.
The start of the refining industry - 1936 Construction of Bapco Refinery Official opening of Bapco Refinery – 1936 by H.H. Sheikh Hamad bin Isa Al-Khalifa
First crude oil shipment from Bahrain Socal's tanker 'El Segundo' arrived on February 22, 1934 and completed the construction of the marine loading facilities at Sitra
Arabia - Bahrain pipeline constructed in 1945 The pipeline links the two Kingdoms
Leadership meetings H.M. King Abdul Aziz visit to Bapco - 1939
Leadership meetings H.M. King Saud and H.H. Sh. Salman – Bahrain, 1954 Seen in the picture Brigadier Ali Mirza
Feb 22, 1958 - Demarcation of the Maritime Boundary between the two brotherly Kingdoms Joint Agreement Area was defined
February 1966 H.H. Sh. Khalifa at Abu-Sa’fah field The inauguration of the Abu-Sa’fah oil field the two kingdoms share the oil resources
Feb 1966 H.H. Sh. Khalifa at Abu-Sa’fah The Inauguration of the Abu-Sa’fah Oil Field The two Kingdoms share equally the oil resources
Commitment to education and training <ul><li>Apprenticeship and craft education were provided by Bapco. </li></ul><ul><li>Classes in English and arithmetic are open to everyone. </li></ul><ul><li>College education was provided to the employees. </li></ul>Bapco School in Mid 1940s
<ul><li>BAPCO Weekly Star </li></ul><ul><li>5 th November 1958 </li></ul><ul><li>Best Bahraini Weekly news paper in 50’s & 60s </li></ul>
<ul><li>Bahrain Field Peaked @ 77,000 Bopd in 1970 </li></ul><ul><li>Then it declined @ 16 % per annum </li></ul><ul><li>At this decline rate the field should have ceased </li></ul>production by 1994 <ul><li>Decline was arrested in 1983 by initiating production </li></ul>improvement measures (Infill Drilling, Workovers, Artificial Lifting, Reservoir Management etc) Bahrain Field An overview of the period 1983-2007
Restructuring of The Oil Industry in Bahrain NOGA is formed by Royal Degree 63 Year 2005
Kingdom Of Bahrain objectives <ul><li>Increase oil and gas production </li></ul><ul><li>Generate additional oil and gas reserves </li></ul><ul><li>Increase revenue to the kingdom of Bahrain </li></ul><ul><li>Technology transfer, training & Bahrainization </li></ul><ul><li>Achieve highest level of SHE standards </li></ul>
Bahrain offshore blocks Block- 1 2858 Km 2 OXY Block- 2 2228 Km 2 PTTEP Block- 4 1478 Km 2 OXY Block- 3 1088 Km 2 OXY
Bahrain Field Phased Development Project (BFPDP) BFPDP – Oil & Gas Zones Deep Gas Project Heavy Oil Zones Shallow Zones Bahrain Zones Arab Zones Khuff Zones Pre-Khuff Zones
Tertiary Oil Thermal & Chemical Flood Secondary Oil G/I, W/I, Artificial Lifting Primary Oil Engineered Recovery Natural Recovery Technology, Investment, Human Intervention 60 – 70 % Middle East Fields US Fields Bahrain Field Oil Recovery Reserve Growth Phases Of Oil Production
Bapco – No Development Oil Rate, Barrel / Day 2009 2011 2013 2015 2017 2019 2021 2023 2025 2027 0 20000 40000 60000 80000 100000 120000 Year Bapco – Development Baseline Winning Company Bahrain Field – Phased Development Project Oil Production Scenarios
<ul><li>Bahrain Field Phased Development Project - $ 15 Billion </li></ul><ul><li>Refinery modernization with LSDP project - $ 1 Billion </li></ul><ul><li>Exploration of 4 Offshore Blocks - $ 170 Million </li></ul><ul><li>Deep Gas Project - $ 300 Million </li></ul><ul><li>Lube Base Oil Plant - $ 400 Million </li></ul><ul><li>A-B Pipeline Replacement - $ 350 Million </li></ul><ul><li>Independent Terminal - $ 300 Million </li></ul><ul><li>Refinery Master Plan - $ 5 Billion </li></ul>New projects
Bahrain – Centre of Professional Knowledge <ul><li>Major oil & gas and petrochemical conferences of the region are held in Bahrain. </li></ul><ul><li>Middle East Oil Show, GEO Conference, PETROTECH are some of them. </li></ul><ul><li>These conferences attract delegates from all over the world to share the experience of pioneering technologies that are applied in this region. </li></ul>
The Indian Expatriates in Bapco have contributed significantly to the progress of the oil business.
Traditionally the oil industry has been regularly employing experts from India not only for technical skills but also for health environment and safety matters Challa R. Murty Sr. Reservoir Engineer S. S. Murthy Manager Maintenance K Kumar Head Reservoir Engineer A. V. Sundararaman Head Design Engineer Dr. Mary John P. Medical Officer R. K. Goyal Advisor Risk Management
Indian Employees in Bapco Year 194 191 189 200 211 1985 1990 1995 2000 2005
Crude and Refined Products Export to India Year 6.0 3.4 6.1 12.7 4.1 0.5 0.4 1.6 1.9 2.9 5.7 11.1 0 2 4 6 8 10 12 14 2005 2006 2007 2008 Refined Products Crude Million Barrels
There has always been a strong, honorable and friendly relationship between India and the Kingdom of Bahrain. With God’s will, this will be strengthened further in the future.
I am grateful to the professional community of India in Bahrain who are part of the advancement of our Industry. You have my admiration for the wonderful work you do in strengthening the bonds between our two countries.