Bapco Bahrain
Encyclopedia
Bahrain Petroleum Company (BAPCO) , wholly owned by the government of Bahrain, is a fully integrated oil company
. Its activities include oil and gas exploration and production
, refining
, storage and distribution of petroleum product
s and natural gas
, and sales and exports of crude oil
and refined products.
The company owns a 267000 oilbbl/d refinery
, storage facilities for more than 14 Moilbbl and a marine wharf to handle product exports. Some 95% of BAPCO's refined products, which include unleaded petrol
, kerosene
, jet fuel
, fuel oil
, sulphur and asphalt
, are exported. The company's customers are located primarily in the Middle East, India, the Far East and Africa.
in a pipeline extending 27 kilometres (16.8 mi) over land and a further 27 kilometres (16.8 mi) under the sea before reaching the north-west of Bahrain.
(LPG), naphtha
, unleaded gasoline, kerosene, aviation turbine fuel, diesel oil, heavy lube distillate, fuel oil and asphalt. BAPCO supplies and sells aviation fuel
at Bahrain International Airport
through its affiliate, Bahrain Aviation Fuelling Company (BAFCO), in which BAPCO is a 60% shareholder. BAFCO was established in 1985.
and venting in the field.
The partners expect oil production to more than double to approximately 75 koilbbl within five years and peak at more than 100 koilbbl. Gas production capacity is expected to grow from 1.7 Gcuft/d to more than 2.5 Gcuft/d.
Exploration & Production (PTTEP) developing Block 2. Exploration on Blocks 2, 3 and 4 has started with geochemical surveys on Blocks 3 and 4 completed in 2008 and seismic processing and interpretation of 2D and 3D data underway.
(H2S) and ammonia
(NH3) levels in refinery-treated sour water are reduced to less than 1ppm and 10ppm respectively. Airborne sulfur dioxide
emissions have plunged 95% to less than 5 tonnes per day (tpd). Units in the RGDP also recover 50 tpd of sulphur, the first exports of which left the Kingdom in May 2009.
. Samsung Engineering
of South Korea
is the engineering, procurement and construction
(EPC) contractor. When completed in June 2011, the LBOP will be the largest plant of its kind in the Middle East, producing more than 400,000 metric tonnes
per year of Group III very high viscosity index
lubricant base oil, the raw material for high quality finished lubricants.
in a variety of ways, from charitable donations to the needy to generous sponsorship schemes. BAPCO is one of the pioneers of the Injaz Bahrain programme, which aims to inspire and mentor young Bahrainis to strive for success. Each year BAPCO sends volunteers into schools and universities to offer insight into the working world and life tips. BAPCO also contributes to the programme by donating US$10,000 annually.
Meanwhile, BAPCO’s sponsorship of the British Chevening Scholarship
Scheme for 2009-2010 enables some of Bahrain’s most talented graduates to attend post-graduate
courses in the UK.
, BAPCO has created an EHS policy that integrates the functions of occupational health, industrial safety and environment. BAPCO's commitment to environmental excellence and adherence to its environmental management system
was rewarded in early 2009 with prestigious ISO14001 certification from international certification firm Bureau Veritas
.
The RGDP has dramatically reduced emissions of SO2, H2S and NH3 into the environment, while the refinery has reduced its Energy Intensity Index (an international standard
reflecting its energy efficiency
) from 138 to 105, with one point representing a US$40,000 saving at current energy prices. The company’s energy conservation
efforts were recognised with the Emirates Energy Award.
Bapco continues to raise awareness of environmental issues among both employees and the wider community, and 2009 marks the 6th year of Bapco’s organisation of the Green School Awards, an initiative encouraging environmental innovations in Bahrain secondary schools.
BAPCO’s no-compromise approach to health and safety
has also led to an array of prestigious international accolades, including Five Star Rating from the British Safety Council (Bapco was only the second Persian Gulf company of any kind to receive the award).
In 2007, BAPCO was also the first company outside the US to receive the Robert W. Campbell Award
for Safety.
BAPCO has a dedicated Health Promotion Section headed by a full-time healthcare professional
. The Section promotes awareness of common health issues to BAPCO employees, their families and the wider community, via targeted campaigns.
Examples of campaigns include awareness and testing of breast diseases, diabetes mellitus
, obesity
and smoking
.
To meet future demand in scarce disciplines such as geology
and petroleum engineering
, BAPCO has launched a revised scholarship scheme to award 25 high-achieving Bahrainis (13 high school Towjehiya (science) graduates and undergraduates from the University of Bahrain
, and 12 existing BAPCO employees).
BAPCO first introduced female graduate scholarships in the 1960s. Currently, 254 of the 411 students receiving BAPCO educational scholarships are female. Furthermore, for the first time, Bapco is considering training women for 'craft positions'. About 9% of BAPCO's over 3,000 employees are female, with several holding key positions in the company.
Petroleum industry
The petroleum industry includes the global processes of exploration, extraction, refining, transporting , and marketing petroleum products. The largest volume products of the industry are fuel oil and gasoline...
. Its activities include oil and gas exploration and production
Extraction of petroleum
The extraction of petroleum is the process by which usable petroleum is extracted and removed from the earth.-Locating the oil field:Geologists use seismic surveys to search for geological structures that may form oil reservoirs...
, refining
Refining
Refining is the process of purification of a substance or a form. The term is usually used of a natural resource that is almost in a usable form, but which is more useful in its pure form. For instance, most types of natural petroleum will burn straight from the ground, but it will burn poorly...
, storage and distribution of petroleum product
Petroleum product
Petroleum products are useful materials derived from crude oil as it is processed in oil refineries.According to crude oil composition and demand, refineries can produce different shares of petroleum products. The largest share of oil products is used as energy carriers: various grades of fuel...
s and natural gas
Natural gas
Natural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...
, and sales and exports of crude oil
Petroleum
Petroleum or crude oil is a naturally occurring, flammable liquid consisting of a complex mixture of hydrocarbons of various molecular weights and other liquid organic compounds, that are found in geologic formations beneath the Earth's surface. Petroleum is recovered mostly through oil drilling...
and refined products.
The company owns a 267000 oilbbl/d refinery
Oil refinery
An oil refinery or petroleum refinery is an industrial process plant where crude oil is processed and refined into more useful petroleum products, such as gasoline, diesel fuel, asphalt base, heating oil, kerosene, and liquefied petroleum gas...
, storage facilities for more than 14 Moilbbl and a marine wharf to handle product exports. Some 95% of BAPCO's refined products, which include unleaded petrol
Gasoline
Gasoline , or petrol , is a toxic, translucent, petroleum-derived liquid that is primarily used as a fuel in internal combustion engines. It consists mostly of organic compounds obtained by the fractional distillation of petroleum, enhanced with a variety of additives. Some gasolines also contain...
, kerosene
Kerosene
Kerosene, sometimes spelled kerosine in scientific and industrial usage, also known as paraffin or paraffin oil in the United Kingdom, Hong Kong, Ireland and South Africa, is a combustible hydrocarbon liquid. The name is derived from Greek keros...
, jet fuel
Jet fuel
Jet fuel is a type of aviation fuel designed for use in aircraft powered by gas-turbine engines. It is clear to straw-colored in appearance. The most commonly used fuels for commercial aviation are Jet A and Jet A-1 which are produced to a standardized international specification...
, fuel oil
Fuel oil
Fuel oil is a fraction obtained from petroleum distillation, either as a distillate or a residue. Broadly speaking, fuel oil is any liquid petroleum product that is burned in a furnace or boiler for the generation of heat or used in an engine for the generation of power, except oils having a flash...
, sulphur and asphalt
Asphalt
Asphalt or , also known as bitumen, is a sticky, black and highly viscous liquid or semi-solid that is present in most crude petroleums and in some natural deposits, it is a substance classed as a pitch...
, are exported. The company's customers are located primarily in the Middle East, India, the Far East and Africa.
Refining
The Bahrain Refinery is one of the largest and oldest in the Middle East. It has a refining capacity of 267000 oilbbl/d. About one-sixth of this crude originates from Bahrain Field; the remainder is pumped from Saudi ArabiaSaudi Arabia
The Kingdom of Saudi Arabia , commonly known in British English as Saudi Arabia and in Arabic as as-Sa‘ūdiyyah , is the largest state in Western Asia by land area, constituting the bulk of the Arabian Peninsula, and the second-largest in the Arab World...
in a pipeline extending 27 kilometres (16.8 mi) over land and a further 27 kilometres (16.8 mi) under the sea before reaching the north-west of Bahrain.
Storage
There are more than 170 storage tanks at different sites with a total capacity of over 14 Moilbbl.Products
The BAPCO refinery produces liquified petroleum gasLiquified petroleum gas
Liquefied petroleum gas is a flammable mixture of hydrocarbon gases used as a fuel in heating appliances and vehicles. It is increasingly used as an aerosol propellant and a refrigerant, replacing chlorofluorocarbons in an effort to reduce damage to the ozone layer...
(LPG), naphtha
Naphtha
Naphtha normally refers to a number of different flammable liquid mixtures of hydrocarbons, i.e., a component of natural gas condensate or a distillation product from petroleum, coal tar or peat boiling in a certain range and containing certain hydrocarbons. It is a broad term covering among the...
, unleaded gasoline, kerosene, aviation turbine fuel, diesel oil, heavy lube distillate, fuel oil and asphalt. BAPCO supplies and sells aviation fuel
Aviation fuel
Aviation fuel is a specialized type of petroleum-based fuel used to power aircraft. It is generally of a higher quality than fuels used in less critical applications, such as heating or road transport, and often contains additives to reduce the risk of icing or explosion due to high temperatures,...
at Bahrain International Airport
Bahrain International Airport
Bahrain International Airport is an international airport located in Muharraq, an island on the northern tip of Bahrain, about northeast of the capital Manama...
through its affiliate, Bahrain Aviation Fuelling Company (BAFCO), in which BAPCO is a 60% shareholder. BAFCO was established in 1985.
Oil and gas production
In 2008 total production of both non-associated and associated gas was 538 Gcuft, an increase of six per cent from 508 Gcuft produced in 2007. Total production of non-associated gas was 436 Gcuft, up 6.9% on 2007, and production of associated gas rose 2.4% to 102 Gcuft. The onshore Bahrain Field produced an average of 32861 oilbbl/d of crude oil in 2008, a decline of 4% from 2007 due to BAPCO's ongoing compliance with a policy of eliminating all gas flaringGas flare
A gas flare, alternatively known as a flare stack, is an elevated vertical conveyance found accompanying the presence of oil wells, gas wells, rigs, refineries, chemical plants, natural gas plants, and landfills....
and venting in the field.
Bahrain Phased Field Development
The Bahrain Phased Field Development is a major project to increase daily oil and gas production and generate additional reserves from the Kingdom’s onshore Bahrain Field. In April 2009, Bahrain's National Oil & Gas Authority (Noga) signed a Development and Production Sharing Agreement (DPSA) for the Field Development with a contractor consortium consisting of three partners: Occidental Petroleum (Oxy) of the US, Mubadala Development Company of the UAE and Noga Holding, to be operated by a joint operating company. Oxy will hold a 48% interest in the DPSA, Mubadala a 32% interest and a subsidiary of Noga Holding the remaining 20%.The partners expect oil production to more than double to approximately 75 koilbbl within five years and peak at more than 100 koilbbl. Gas production capacity is expected to grow from 1.7 Gcuft/d to more than 2.5 Gcuft/d.
Offshore Exploration Programme
Oxy is developing three offshore Blocks (1, 3 and 4), with the Petroleum Authority of ThailandPTT Public Company Limited
PTT Public Company Limited, PTT PCL, or simply PTT is a Thai state-owned SET-listed oil and gas company. Formerly known as the Petroleum Authority of Thailand, it owns extensive submarine gas pipelines in the Gulf of Thailand, a network of LPG terminals throughout the Kingdom, and is involved in...
Exploration & Production (PTTEP) developing Block 2. Exploration on Blocks 2, 3 and 4 has started with geochemical surveys on Blocks 3 and 4 completed in 2008 and seismic processing and interpretation of 2D and 3D data underway.
2008-2010 Khuff Development Drilling and Workover Programme
Increased production capacity of Bahrain's onshore Khuff gas formations is of national importance to meet the Kingdom's rising gas demand. As part of a US$200 million investment plan, Khuff gas production capacity will increase by 500 Mcuft/d (mcfd). Eight new gas wells are being drilled and seven new gas dehydrators constructed. The first well was completed in December 2008. Daily Khuff production in 2008 averaged 1192 Mcuft/d, up 87 Mcuft/d from 2007.Development Wells Drilling Programme for 2009-2011
A plan for an aggressive development drilling programme over 2009/2011 is underway. The programme includes drilling 104 wells of many complex types including directional, horizontal and re-entry wells, in addition to vertical wells. Planning and procurement work continued at full pace during 2008, with programme execution taking place in 2009.Low Sulphur Diesel Production (LSDP) Complex
The cornerstone of BAPCO's one billion-plus dollar strategic investments plan, the 100 koilbbl capacity Low Sulphur Diesel Production (LSDP) complex came on-stream in 2007 and today meets rising global demand for ultra low sulphur diesel (ULSD) in line with new exhaust emissions legislation introduced by global governments.Refinery Gas Desulphurisation Project (RGDP)
BAPCO commissioned the US$151 million RGDP in January 2009 as part of the company's vision to turn the refinery into one of the world's greenest. Through the RGDP, Hydrogen sulfideHydrogen sulfide
Hydrogen sulfide is the chemical compound with the formula . It is a colorless, very poisonous, flammable gas with the characteristic foul odor of expired eggs perceptible at concentrations as low as 0.00047 parts per million...
(H2S) and ammonia
Ammonia
Ammonia is a compound of nitrogen and hydrogen with the formula . It is a colourless gas with a characteristic pungent odour. Ammonia contributes significantly to the nutritional needs of terrestrial organisms by serving as a precursor to food and fertilizers. Ammonia, either directly or...
(NH3) levels in refinery-treated sour water are reduced to less than 1ppm and 10ppm respectively. Airborne sulfur dioxide
Sulfur dioxide
Sulfur dioxide is the chemical compound with the formula . It is released by volcanoes and in various industrial processes. Since coal and petroleum often contain sulfur compounds, their combustion generates sulfur dioxide unless the sulfur compounds are removed before burning the fuel...
emissions have plunged 95% to less than 5 tonnes per day (tpd). Units in the RGDP also recover 50 tpd of sulphur, the first exports of which left the Kingdom in May 2009.
Lube Base Oils Project (LBOP)
In its continued pursuit of excellence through expansion and product diversification, BAPCO refinery is the site of a US$430 million lube base oils plant (LBOP) being built by the Bahrain Lube Base Oil Company B.S.C (Closed). The project is a joint venture between BAPCO and Finland's Neste OilNeste Oil
Neste Oil is a Finnish oil refining and marketing company producing mainly transportation fuels and other refined petroleum products. Neste Oil shares are quoted on the Helsinki Stock Exchange.- History :...
. Samsung Engineering
Samsung Engineering
Samsung Engineering Co., Ltd. was founded as the first engineering firm in Korea in 1970 and has its headquarters based in Seoul, South Korea. As an engineering, procurement and construction company, it provides a full range of engineering services including feasibility studies, design,...
of South Korea
South Korea
The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...
is the engineering, procurement and construction
EPC (contract)
EPC stands for Engineering, Procurement and Construction.It is a common form of contracting arrangement within the construction industry. Under an EPC contract, the contractor will design the installation, procure the necessary materials and construct it, either through own labour or by...
(EPC) contractor. When completed in June 2011, the LBOP will be the largest plant of its kind in the Middle East, producing more than 400,000 metric tonnes
Tonne
The tonne, known as the metric ton in the US , often put pleonastically as "metric tonne" to avoid confusion with ton, is a metric system unit of mass equal to 1000 kilograms. The tonne is not an International System of Units unit, but is accepted for use with the SI...
per year of Group III very high viscosity index
Viscosity index
Viscosity index is an arbitrary measure for the change of viscosity with temperature. It is used to characterize lubricating oil in the automotive industry....
lubricant base oil, the raw material for high quality finished lubricants.
Corporate social responsibility
BAPCO is a major contributor to the community and society of the Kingdom of BahrainBahrain
' , officially the Kingdom of Bahrain , is a small island state near the western shores of the Persian Gulf. It is ruled by the Al Khalifa royal family. The population in 2010 stood at 1,214,705, including 235,108 non-nationals. Formerly an emirate, Bahrain was declared a kingdom in 2002.Bahrain is...
in a variety of ways, from charitable donations to the needy to generous sponsorship schemes. BAPCO is one of the pioneers of the Injaz Bahrain programme, which aims to inspire and mentor young Bahrainis to strive for success. Each year BAPCO sends volunteers into schools and universities to offer insight into the working world and life tips. BAPCO also contributes to the programme by donating US$10,000 annually.
Meanwhile, BAPCO’s sponsorship of the British Chevening Scholarship
Chevening Scholarship
Chevening Scholarship is a prestigious and highly competitive scholarship scheme for international students who demonstrated leadership potential and a commitment to public service. The Chevening Scholarships are named after Chevening House in Kent, the official country residence of the Foreign...
Scheme for 2009-2010 enables some of Bahrain’s most talented graduates to attend post-graduate
Postgraduate education
Postgraduate education involves learning and studying for degrees or other qualifications for which a first or Bachelor's degree generally is required, and is normally considered to be part of higher education...
courses in the UK.
Environment, health and safety
Protection of the environment continues to be a major focus of the company's policy. In line with best practiceBest practice
A best practice is a method or technique that has consistently shown results superior to those achieved with other means, and that is used as a benchmark...
, BAPCO has created an EHS policy that integrates the functions of occupational health, industrial safety and environment. BAPCO's commitment to environmental excellence and adherence to its environmental management system
Environmental Management System
Environmental management system refers to the management of an organization's environmental programs in a comprehensive, systematic, planned and documented manner....
was rewarded in early 2009 with prestigious ISO14001 certification from international certification firm Bureau Veritas
Bureau Veritas
Bureau Veritas S.A. is a multinational company providing conformity assessment, certification and consulting services to industry, government and individuals. Originally formed in Antwerp in 1828 as Bureau de Renseignements pour les Assurances Maritimes , the Bureau Veritas name was adopted in 1829...
.
The RGDP has dramatically reduced emissions of SO2, H2S and NH3 into the environment, while the refinery has reduced its Energy Intensity Index (an international standard
International standard
International standards are standards developed by international standards organizations. International standards are available for consideration and use, worldwide...
reflecting its energy efficiency
Efficient energy use
Efficient energy use, sometimes simply called energy efficiency, is the goal of efforts to reduce the amount of energy required to provide products and services. For example, insulating a home allows a building to use less heating and cooling energy to achieve and maintain a comfortable temperature...
) from 138 to 105, with one point representing a US$40,000 saving at current energy prices. The company’s energy conservation
Energy conservation
Energy conservation refers to efforts made to reduce energy consumption. Energy conservation can be achieved through increased efficient energy use, in conjunction with decreased energy consumption and/or reduced consumption from conventional energy sources...
efforts were recognised with the Emirates Energy Award.
Bapco continues to raise awareness of environmental issues among both employees and the wider community, and 2009 marks the 6th year of Bapco’s organisation of the Green School Awards, an initiative encouraging environmental innovations in Bahrain secondary schools.
BAPCO’s no-compromise approach to health and safety
Occupational safety and health
Occupational safety and health is a cross-disciplinary area concerned with protecting the safety, health and welfare of people engaged in work or employment. The goal of all occupational safety and health programs is to foster a safe work environment...
has also led to an array of prestigious international accolades, including Five Star Rating from the British Safety Council (Bapco was only the second Persian Gulf company of any kind to receive the award).
In 2007, BAPCO was also the first company outside the US to receive the Robert W. Campbell Award
Robert W. Campbell Award
The international Robert W. Campbell Award honors companies that achieve business excellence through the integration of EHS management into business operations. Built upon rigorous scientific evaluation, the Campbell Award uses an evidence-based case study approach to serve as a catalyst toward...
for Safety.
BAPCO has a dedicated Health Promotion Section headed by a full-time healthcare professional
Health profession
The health care industry, or medical industry, is the sector of the economic system that provides goods and services to treat patients with curative, preventive, rehabilitative, palliative, or, at times, unnecessary care...
. The Section promotes awareness of common health issues to BAPCO employees, their families and the wider community, via targeted campaigns.
Examples of campaigns include awareness and testing of breast diseases, diabetes mellitus
Diabetes mellitus
Diabetes mellitus, often simply referred to as diabetes, is a group of metabolic diseases in which a person has high blood sugar, either because the body does not produce enough insulin, or because cells do not respond to the insulin that is produced...
, obesity
Obesity
Obesity is a medical condition in which excess body fat has accumulated to the extent that it may have an adverse effect on health, leading to reduced life expectancy and/or increased health problems...
and smoking
Smoking
Smoking is a practice in which a substance, most commonly tobacco or cannabis, is burned and the smoke is tasted or inhaled. This is primarily practised as a route of administration for recreational drug use, as combustion releases the active substances in drugs such as nicotine and makes them...
.
To meet future demand in scarce disciplines such as geology
Geology
Geology is the science comprising the study of solid Earth, the rocks of which it is composed, and the processes by which it evolves. Geology gives insight into the history of the Earth, as it provides the primary evidence for plate tectonics, the evolutionary history of life, and past climates...
and petroleum engineering
Petroleum engineering
Petroleum engineering is an engineering discipline concerned with the activities related to the production of hydrocarbons, which can be either crude oil or natural gas. Subsurface activities are deemed to fall within the upstream sector of the oil and gas industry, which are the activities of...
, BAPCO has launched a revised scholarship scheme to award 25 high-achieving Bahrainis (13 high school Towjehiya (science) graduates and undergraduates from the University of Bahrain
University of Bahrain
The University of Bahrain , a public university in the Kingdom of Bahrain, is the largest university in Bahrain. In post-nominals the University of Bahrain is typically abbreviated as UoB....
, and 12 existing BAPCO employees).
BAPCO first introduced female graduate scholarships in the 1960s. Currently, 254 of the 411 students receiving BAPCO educational scholarships are female. Furthermore, for the first time, Bapco is considering training women for 'craft positions'. About 9% of BAPCO's over 3,000 employees are female, with several holding key positions in the company.