THE GOVERNMENTS of Bahrain and Saudi Arabia are understood to be exploring plans to expand the capacity of the oil pipeline connecting the two countries, a senior Bahraini official is reported to have said. The countries plan to expand the oil pipeline capacity to 350,000brl/d from the current 235,000brl/d, Bahrain Petroleum Co (Bapco) Chief Executive Abdulkarim al-Sayed told local reporters. The project was likely to cost between $300 and $350 million, he said.
The company contracted to study the proposal will advise on the project and prepare a preliminary engineering report on the route of the pipeline and its size, Mr al-Sayed said. Bahrain plans a $2-billion expansion of its Sitra refinery, to boost capacity to around 360,000brl/d by 2016, up from around 260,000brl/d at present. However, this depends on obtaining increased supplies from Saudi Arabia through the pipeline. Output at the Sitra refinery was around 271,000brl/d in the first nine months of 2008, Oil Minister Abdul-Hussain Ali Mirza said, slightly above it design capacity.
Bahrain’s share of the output from the Abu Saafa oilfield stood was about 149,867brl/d in the first nine months of 2008, Mr Mirza said. Saudi Arabia pumps Bahrain’s share of the oil from Abu Saafa through the pipeline. Bahrain also buys Arab Light crude from its neighbour to process at the Sitra refinery.
