Bahrainisation ratio exceeds 80% in oil sector, affirms minister

Manama, Feb. 25 (BNA): Energy Minister Dr. Abdulhussain bin Ali Mirza has affirmed that the construction and development of strategic energy projects is supported by the kingdom's leadership and proceeds in accelerated strides to cater for Bahrain's current and future needs and the demand on various energy sources. The minister said from accumulated experience Bahrain is capable of efficiently coping with global oil market upheavals. Speaking to Bahrain News Agency (BNA), Dr. Mirza said "Bahrain was actively and intently working on the development and diversification of its non-oil resources in the new projects aimed to ensure sustainable alternative clean energy supplies, including wind and solar power in addition to developing the oil sector itself to double its added-value and competitiveness keeping pace with local and international developments". "Bahrain is keen to make remarkable progress in terms of construction and development of strategic and infrastructure projects to meet the increasingly growing demand on energy. We are currently implementing an array of projects aimed to boost and diversify the sources of energy," according to the minister. He explained that these projects are part of the estimated at $32 billion investment fund announced by the Economic Development Board (EDB), including the Refinery Modernization Project which will boost Bahrain's refining capacity from 260,000 to 360,000 barrels per day and the new oil pipeline project spanning 115 kilometres between the Kingdom of Bahrain and the Kingdom of Saudi Arabia as well as Bahrain Harbour for Liquefied Natural Gas (BHLNG) project with a preliminarily estimated capacity of 400 million cubic feet expandable to 800 million cubic feet scheduled to become operational in 2018, he added. All these projects and other pivotal projects being implemented by the oil sector, together with Electricity and Water Authority (EWA)-implemented infrastructure development projects will boost the power supply grid capacity to 400 kilovolts, in addition to launching a series of substations, securing the power connection process, all of which will considerably ensure the kingdom's energy supply needs, he revealed. Clearly, these and other projects indicate that the kingdom is proceeding in the right direction to ensure and meet its current and future needed energy sources taking into consideration all ambient local and external factors, he affirmed. Renewable energy industry over recent years has witnessed remarkable attention, most notably at the regional and local levels, especially in the field of solar and wind power. Bahrain has abundant solar energy which exceeds 2000 kwh/m2/year and wind velocity reaching 1300 h/h. The ministry-affiliated Sustainable Energy Unit (SEU) was constructed in compliance with Cabinet resolution 2238/4 dated 22 December 2013 in collaboration with the United Nations Development Programme (UNDP) and in the meantime we are working on preparation of the National Renewable Energy Plan (NREAP) simultaneously with the preparation of a study regarding the Feed-in Tariff (FiT) application to boost the Kingdom's benefit from harnessing renewable energy, including wind power. The kingdom strives to raise public awareness about the advantages and benefits of renewable energy, and therefore Bahrain Petroleum Company (Bapco) implemented dual energy projects to benefit from solar and wind power in the Princess Sabeeka Park and Al Dar Resort. Similarly, Bahrain World Trade Centre (BWTC) twin tower building features the most unique design of its type in the world, as both towers are connected with wind turbines which generate about 13% of the building's total need of electricity. Also, recently, agreement was signed with a German firm to produce three megawatts of wind power from a site in the vicinity of Al Dur Plant, he added. There is excellent advanced coordination between the National Oil and Gas Authority (NOGA) and the Supreme Council for Environment (SCE). Representatives from the relevant bodies are actively involved in drawing the kingdom's policies relating to issues of climate change (i.e. carbon emission reduction) as part of the Joint National Committee on Climate Change. They also contribute in the compilation of the national report of nationally-determined contributors INDCs. They also effectively participate in multipartite conferences, the latest of which was Paris Conference on Climate Change held from November 30 to December 12, 2015 which for the first time came up with a mandatory international agreement for all countries aka Paris Accord. The representatives of the National Oil and Gas Authority (NOGA) and its subsidiaries also representatives of the Electricity and Water Authority EWA participate in the project of updating the kingdom's standards and specifications relating to the Supreme Council for Environment (SCE). Moreover, there is cooperation and involvement in the activities and events organized by both parties in the field of energy management, climate change and green energy. The energy sector is always keen on all of its projects' obtaining the required environmental passes. The Sustainable Energy Unit SEU has always been keen the Supreme Council for Environment is representatives in the SEU's formation to glean the SCE's viewpoints, opinion and its engagement in all SEU's projects and its future energy-related policy, especially the National Plan for Enhancement of Energy Efficiency, the National Plan for Renewable Energy and the project of preparation of posters on energy efficiency. Many international firms have expressed their desire to participate in oil and gas exploration over the last two years, and NOGA in coordination with Bapco have assessed submerged areas after completion of the work of international companies. There is coordination with new foreign companies to carry out surveys in preparation to offer the sections once again for exploration. Bapco is currently inviting foreign companies to visit the data chamber to view such opportunities and hence to participate in bidding for the tenders which NOGA intends to offer in future in full coordination with the Tender Board. All countries nowadays opt for solar energy. More than 195 countries attended the Paris Conference on Climate Change and unanimously agreed that the harnessing of clean energy does not impact on the environment and reduces carbon emission resultant from fossil fuel exploration. Solar and wind energy is self-renewable clean energy that does not impact on the environment. In future, focus will be on renewable energy. Therefore, we have established the Sustainable Energy Unit (SEU), maintained and renamed it the Sustainable Energy Unit which is affiliated to the Energy Ministry and was approved by the Cabinet. Currently we are working in association with the UNDP which has the required expertise in this field to prepare a comprehensive plan for the kingdom on how to encourage investment in renewable energy benefitting from modern technology. Throughout the course of history, speculation on oil prices proved to be very difficult, there are just guess-estimates for the prices of oil fluctuate according to the ratio of supply and demand. Today, there is an oversupply of two million barrels per day, which leads to the plummet of prices. Reason is that the evolution that took place in shale oil extraction technology in the United states led to the increased productivity of a new type of crude oil which could not have been extractable in times past. This means there was an increase in the supply in addition to some countries have boosted their production inside OPEC, such as Iraq and Iran and outside OPEC such as Russia. All that means the supply exceeds the demand. Also, there is a drop in consumption as a result of sluggish economic growth in consumer countries such as China and other countries. It is a well-known fact that shale oil is infeasible in most cases as it costs upwards of $ 60 meanwhile the price of conventionally-produced oil is now below the $40 benchmark. Therefore, we see that the number of shale oil drillers is decreasing, and should the situation remains as it is, the supply will become less and this in turn will lead to adjustment of prices, or if OPEC members and oil producers from outside OPEC agree to reduce production. Bahrainisation in the oil companies receive a great deal of attention and reached in some of the companies affiliated with NOGA to 99% as the case is in Bahrain Aircraft Fueling Company (BAFCO). Generally speaking, the ratio of Bahrainisation in the oil companies has reached an average of 80% of the total workforce. In Bahrain Petroleum Company (Bapco) it reached 79%, in Gulf Petrochemical Industry Company (GPIC) it reached 83.4%, IN Bahrain National Gas Company (Bangas) it reached 90% and Bahrain Petroleum Development Company (Tatweer) it reached 73%. Bahraini citizens working in the oil companies operating in the Kingdom of Bahrain are the highest compared with Gulf Cooperation Council ( GCC) national oil companies. Undoubtedly, oil price fluctuations negatively affect the overall situation and the global oil market situation. However, regarding oil investments in the Kingdom of Bahrain, we in the National Oil and Gas Authority (NOGA) at the directives of the wise leadership and with NOGA plans and strategies are proceeding according to present plan. We have signed to start the implementation of numerous projects in the outgoing year (2015). These projects include the Bahrain Harobur for Liquefied Natural Gas (LNG), the new oil pipeline project between the Kingdom of Bahrain and the Kingdom of Saudi Arabia. Also, invitation letters were sent to international firms for deep gas exploration. Bangas capacity expansion project was also signed. Also, agreement was signed between Bahrain Oil Company (Bapco) and Bahrain Aluminium Company (Alba) for gas supply. The agreement marked the historic launching of developmental projects in Alba by adding a sixth production line in Alba, in addition to countless other projects, the Minister of Energy concluded.