Flip through the latest issue of Gulf Weekly.
Bapco will be ready by the first quarter of next year to finalise expansion plans that could boost refining capacity to nearly half a million barrels per day and cost around $6 billion, its chief executive said.
The expansion, which is in line with the country’s strategy to increase its crude oil production to 100,000 bpd by 2017 from the current 40,000 bpd, is still subject to the Bapco board’s approval, expected in 2012.
“Hopefully by the first quarter, the studies will be over to make a decision for the upgrade,” Bapco CEO Faisal Mohamed Al Mahroos, said on the sidelines of a conference in Bahrain.
Through the expansion, Bapco’s refining capacity could rise to 460,000 bpd, Mr Al Mahroos said. It is now 267,000 bpd.
“We have now five old crude units. The idea is to replace with one or two crude units. We are going to replace the FCC (fluid catalytic cracker) unit with a new one,” Mr Al Mahroos said. “It could be $5 billion to $6 billion or it could be $6 billion to $7 billion, plus or minus. It will depend on the board decision,” he said.
Bapco’s refining margins were positive and were ‘better’ compared with 2010, Mr Mahroos said, even though they were below the peak seen in 2008.
