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A duAl celebration took place for Bahrain Petroleum Company (Bapco) as the inauguration of its new Low Sulphur Diesel Production (LSDP) complex by Prime Minister Shaikh Khalifa bin Salman Al Khalifa formed the centrepiece of the 75th Anniversary of the discovery of oil in Bahrain.
The completion of the LSDP, one of the largest projects in Bapco's history, ends a year of achievements for the petroleum company and Bahrain. It marks 75 years of oil production and Bapco's winning of the prestigious Robert W Campbell National Safety Council Award 2007 for excellence in safety, health and environment.
Bahrain, which was the first country to discover oil on the Arab side of the Gulf, echoed the pioneering spirit of 75 years ago with the inauguration of the first LSDP complex in the region. The new facility forms the core element of Bapco's $1billion Strategic Investment Programme and reflects the vital importance in enabling continued sale in the international diesel market, contributing significantly to the future of Bapco as a major international export refinery.
The event was attended by 500 VIP guests including the Prime Minister, members of the Bahraini parliament, international ambassadors and dignitaries and CEOs of Bahraini and international firms. Also present were recipients of Bapco's 'Retirees Long Service Awards', whose presentations formed a key part of the occasion and embodied the spirit of 75 years of achievement and commitment to success at Bapco.
Bahraini oil products will take a new image and be highly competitive in global markets said the Prime Minister after inaugurating the new $725-million (BD262m) plant. "The vital project will indeed boost Bahrain's industrial basis, enhance Bapco products, invigorate the national economy and help it meet development requirements," he said.
Shaikh Khalifa said the project should create more job opportunities and strengthen Bahrain's industrial status regionally and internationally.
Bahrain's Minister of Oil and Gas Affairs, Dr Abdul Hussain bin Ali Al Mirza said: "Our happiness with this great achievement coincides with the celebration marking Bahrain's 75th anniversary of oil discovery, when the springs of prosperity flowed in the year 1932. This enabled the country to experience a new phase of construction, development and serious work in the best interest of Bahrain and its citizens."
The plant aims at reducing the sulphur contents in the diesel produced by Bapco, from 0.7 ppm to less than 0.001ppm, or less than 10 parts per million. This will ensure sustained and competitive sale of diesel in the global market and enhance the future of the company as a pioneering refiner at world level. The refinery is also expected to bring extra annual income for the government estimated at $300 million (BD112.36m).
As a true multinational facility, the new plant saw specialist suppliers and contractors from Belgium and the US join in partnership with Bapco while the construction process has been completed in cooperation with Japan's JGC Corporation, which is recognised as a world leader in delivering solutions for oil and gas production. JGC's speciality is the optimisation of the entire project, from development planning to plant construction and operation and maintenance (O&M), contributing to maximum investment efficiency from a life cycle perspective as well as business implementation.
As a result many of the Bahraini workers who will man the LSDP facility have travelled to JGC's headquarters in Yokohama to undergo full training under the watchful eye of Essa Al Ansari, Bapco's acting general manager for major engineering projects and Hasan A Rahman Hasan, project manager for the LSDP project.
The colossal structure of the LSDP refinery houses a spectacular array of equipment and has brought out the talents of the multinational workforce in full. The cornerstone of the new complex is the two-stage hydrocracker which is one of the largest single-train hydrocrackers in the world.
The LSDP Complex will grant Bapco the capability to produce up to 100,000 barrels per day of ultra-low sulphur diesel to the most stringent international standards of fewer than 10ppm of sulphur emissions.
By seizing the initiative and committing to the construction of the new LSDP Complex, Bapco's answer to the international call for supply brings consolidation of the kingdom's fuel income into the future. Low sulphur diesel will increase the yield of more valuable refinery products, with incremental annual revenue expected to exceed $300million, which amounts to a return on investment of over 30 per cent.
