Minister 26 May09 Final Indian Bahraini Society

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The Development of Oil Industry in Bahrain Past, Present & Future

The Development of Oil Industry in Bahrain Past, Present & Future

By H.E. Dr. Abdulhussain Bin Ali MirzaMinister of Oil & Gas Affairs

Chairman of National Oil & Gas Authority (NOGA)

By H.E. Dr. Abdulhussain Bin Ali MirzaMinister of Oil & Gas Affairs

Chairman of National Oil & Gas Authority (NOGA)

Bahrain India SocietyMay 26, 2009

Bahrain India SocietyMay 26, 2009

Manama – Kingdom of BahrainManama – Kingdom of Bahrain

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The beginning of the oil era inthe Kingdom of Bahrain

The beginning of the oil era inthe Kingdom of Bahrain

1840 - The first geological survey was conducted in

1840 by Captain Constable on behalf of the Geological

Survey of India.

1908 – “The strata which overlie the Jebel Al-Dukhan beds

are admirably adapted lithologically for storing petroleum” G.E. Pilgrim

1904 - 1905 – First Geological Exploration for

petroleum deposit by the Geological Survey of India.

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Early geology work shows similar oil trapping potential on both sides

Early geology work shows similar oil trappingpotential on both sides

JEBEL DUKHAN

AIN EL QAR

CIRCLE OF CLIFFSJEBEL EL DHAHRAN

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.

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.

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Major Frank HolmesFather of oil

Major Frank HolmesFather of oil

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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.

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.

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Bahrain Concession

Contract

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.

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Holmes transferred the interest to Gulf Oil

Corporation in 1927.

Gulf Oil sold its interest to the Standard Oil of

California (Socal) in 1928.

This led to the formation of the Bahrain Oil

Company (Bapco) on January 1929 in Canada.

The Red Line Agreement was signed in 1928

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Gulbenkian

The Red Line Agreement - 1928The Red Line Agreement - 1928

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B A P C O

Bapco was incorporated in Canada

January, 1929January, 1929

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Bapco was registered as a Canadian company

In Ottawa, Canada

11th January, 192911th January, 1929

Trusts BuildingOttawa, Canada

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Socal sent geologist Fred

Davies and drilling man

William Taylor to prepare for

the drilling.

March, 1930March, 1930

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Socal geologist Fred Davis arrives in Bahrain from San Francisco in May 1930

Socal geologist Fred Davis arrives in Bahrain from San Francisco in May 1930

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Fred Davies marked well

No. 1 with cairn of stones

surmounted by a flag

May, 1930May, 1930

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Drilling rig and other equipments arrived at Manama port.

Ed Skinner with technical team arrived in Bahrain

May, 1931May, 1931

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Spudded well no.1 - Bahrain

16th October, 193116th October, 1931

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September, 1931September, 1931

Visit by Socal officials to Well No.1 drilling site

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24th Nov. 200824th Nov. 2008

Visit by H.E. Dr.

Abdulhussain bin Ali Mirza

to Well No. 866 drilling site

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The tireless and continuous hard

work by the Bahraini labor

force made the oil dream come true

The tireless and continuous hard

work by the Bahraini labor

force made the oildream come true

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Oil discovery in Bahrain - 1932Oil discovery in Bahrain - 1932

Well of hope of hope

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Beginning of the refining industry in BahrainBeginning 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.

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The start of the refining industry - 1936The 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

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First crude oil shipment from Bahrain

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

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Arabia - Bahrain pipeline constructed in 1945Arabia - Bahrain pipeline constructed in 1945

The pipeline links thetwo Kingdoms

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Laying the Arabia - Bahrain pipeline, 1945Laying the Arabia - Bahrain pipeline, 1945

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Leadership meetingsLeadership meetings

H.M. King Abdul Aziz visit to Bapco - 1939

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H.M. King Saud and H.H. Sh. Salman – Bahrain, 1954

Seen in the picture Brigadier Ali Mirza

Leadership meetingsLeadership meetings

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Feb 22, 1958 - Demarcation of the Maritime Boundary between the two brotherly Kingdoms

- Feb 22, 1958 Demarcation of the

Maritime Boundary between thetwo brotherly Kingdoms

Joint Agreement Area was definedJoint Agreement Area was defined

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February 1966 H.H. Sh. Khalifaat Abu-Sa’fah field

The inauguration of the Abu-Sa’fah oil fieldthe two kingdoms share the oil resources

The inauguration of the Abu-Sa’fah oil fieldthe two kingdoms share the oil resources

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Feb 1966 H.H. Sh. Khalifa at Abu-Sa’fah

The Inauguration of the Abu-Sa’fah Oil FieldThe two Kingdoms share equally

the oil resources

The Inauguration of the Abu-Sa’fah Oil FieldThe two Kingdoms share equally

the oil resources

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Commitment to education and training

Commitment to education and training

Apprenticeship and craft education were provided by Bapco.

Classes in English and arithmetic are open to everyone.

College education was provided to the employees. Bapco School in Mid 1940s

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BAPCO Weekly Star5th November 1958

Best Bahraini Weekly news paper in 50’s & 60s

BAPCO Weekly Star5th November 1958

Best Bahraini Weekly news paper in 50’s & 60s

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Bahrain Field Peaked @ 77,000 Bopd in 1970 Bahrain Field Peaked @ 77,000 Bopd in 1970

Then it declined @ 16 % per annum Then it declined @ 16 % per annum

At this decline rate the field should have ceased At this decline rate the field should have ceased production by 1994 production by 1994

Decline was arrested in 1983 by initiating production Decline was arrested in 1983 by initiating production improvement measures (Infill Drilling, Workovers, improvement measures (Infill Drilling, Workovers, Artificial Lifting, Reservoir Management etc) Artificial Lifting, Reservoir Management etc)

Bahrain FieldBahrain Field

An overview of the period 1983-2007An overview of the period 1983-2007

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Restructuring of The Oil Industry in BahrainRestructuring of The Oil Industry in Bahrain

NOGA is formed by Royal Degree 63 Year 2005NOGA is formed by Royal Degree 63 Year 2005

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Kingdom Of Bahrain objectivesKingdom Of Bahrain objectives

Increase oil and gas production

Generate additional oil and gas reserves

Increase revenue to the kingdom of Bahrain

Technology transfer, training & Bahrainization

Achieve highest level of SHE standards

Increase oil and gas production

Generate additional oil and gas reserves

Increase revenue to the kingdom of Bahrain

Technology transfer, training & Bahrainization

Achieve highest level of SHE standards

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New Initiatives New Initiatives

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Block- 1 2858 Km2

OXY

Block- 2 2228 Km2

PTTEP

Block- 41478 Km2

OXY

Block- 31088 Km2

OXY

Bahrain offshore blocksBahrain offshore blocks

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Bahrain Field Phased Development Project (BFPDP)Bahrain Field Phased Development Project (BFPDP)

Average Depth ( Ft )

1500

1700

2200

3500

10000

Aruma & Rubble (Tar & Heavy Oil)

Shallow Zones( Ostracod / Magwa / Aa Ab )

Bahrain Zones( Ac / Mdd / Cab / Cc / Cd )

Arab & Minor Zones( Kharaib / Fadhili / ARB / ARS / ARD )

Khuff Gas Zones( K0 / K1 / K2 / K3 )

13000 Pre-Khuff Zones

BFPDP – Oil & Gas Zones

Deep Gas Project

Heavy Oil Zones

Shallow Zones

Bahrain Zones

Arab Zones

Khuff Zones

Pre-Khuff Zones

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Tertiary Oil

Thermal &Chemical Flood

Secondary Oil

G/I, W/I, Artificial Lifting

Primary Oil

Engineered RecoveryEngineered Recovery

NaturalRecoveryNaturalRecovery

Te

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60 – 70 %60 – 70 %

Middle EastFieldsMiddle EastFields

US FieldsUS Fields

Bahrain FieldBahrain Field

Oil RecoveryOil Recovery

Re

se

rve

Gro

wth

Re

se

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Gro

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Phases Of Oil ProductionPhases Of Oil Production

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Bapco – No Development

Oil

Ra

te,

Ba

rre

l /

Da

y

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 ProjectOil Production Scenarios

Bahrain Field – Phased Development ProjectOil Production Scenarios

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Bahrain Field Phased Development Project - $ 15 Billion Bahrain Field Phased Development Project - $ 15 Billion

Refinery modernization with LSDP project - $ 1 Billion Refinery modernization with LSDP project - $ 1 Billion

Exploration of 4 Offshore Blocks - $ 170 Million

Deep Gas Project - $ 300 Million

Exploration of 4 Offshore Blocks - $ 170 Million

Deep Gas Project - $ 300 Million

Lube Base Oil Plant - $ 400 Million

A-B Pipeline Replacement - $ 350 Million

Independent Terminal - $ 300 Million

Refinery Master Plan - $ 5 Billion

Lube Base Oil Plant - $ 400 Million

A-B Pipeline Replacement - $ 350 Million

Independent Terminal - $ 300 Million

Refinery Master Plan - $ 5 Billion

New projectsNew projects

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Bahrain – Centre of Professional KnowledgeBahrain – Centre of Professional Knowledge

Major oil & gas and petrochemical conferences of the region are held in Bahrain.

Middle East Oil Show, GEO Conference, PETROTECH are some of them.

These conferences attract delegates from all over the world to share the experience of pioneering technologies that are applied in this region.

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Technical EventsTechnical Events

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Bonds ofBahrain Oil Industry

with India

Bonds ofBahrain Oil Industry

with India

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The Indian Expatriates in Bapco have contributed significantly to the progress of the oil business.

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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. MurtySr. Reservoir EngineerChalla R. MurtySr. Reservoir Engineer

S. S. MurthyManager MaintenanceS. S. MurthyManager Maintenance

K KumarHead Reservoir EngineerK KumarHead Reservoir Engineer

A. V. SundararamanHead Design EngineerA. V. SundararamanHead Design Engineer

Dr. Mary John P.Medical OfficerDr. Mary John P.Medical Officer R. K. Goyal

Advisor Risk ManagementR. K. GoyalAdvisor Risk Management

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194 191 189 200 211

1985 1990 1995 2000 2005

Indian Employees in BapcoIndian Employees in Bapco

Year

48

Crude and Refined Products Export to IndiaCrude and Refined Products Export to India

6.06.0

3.43.4

6.16.1

12.712.7

4.1

0.5 0.41.6

1.91.9

2.92.9

5.75.7

11.111.1

0

2

4

6

8

10

12

14

2005 2006 2007 2008

Refined Products

Crude

Mil

lio

n B

arre

ls

Year

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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.

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.

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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.

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.

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Thank YouThank You