Annual Report 2023 - English

His Royal Highness

Prince Salman bin Hamad Al Khalifa

Crown Prince Prime Minister

His Majesty King Hamad bin Isa Al Khalifa

King of the Kingdom of Bahrain

I am delighted to see our youth are working in an industry that is driving our economic growth. Most importantly, to have a clear career progression path for the next generation of leaders in the sector. ''

His Highness Shaikh Nasser bin Hamad Al Khalifa

His Majesty the King's Representative for Humanitarian Works and Youth Affairs Chairman of Bapco Energies Board of Directors

Powering the Future:

Energy Transition

Chairman’s Foreword

Chief Executive Officer Foreword

Board of Directors

Executive Management

2023 Highlights

Environment, Social and Governance

Corporate Governance

Operating Performance

Engineering

Reliability and Maintenance

Procurement, Contracts & Warehousing

People Information and Digital Technology

Bapco Modernization Programme (BMP)

Chairman’s Foreword

I am privileged to present the Bapco Refining Annual Report, which provides an overview of the Company’s performance, milestones and achievements for the year 2023. Under the theme of Powering the Future: Energy Transition, the report reflects the Company’s unwavering commitment and ongoing dedication in fostering the sustainable growth and national economy of the Kingdom of Bahrain.

Throughout the year 2023, several achievements and milestones were successfully achieved under the new Company brand, Bapco Refining. Significant work has been made on the strategic investment programmes and initiatives, the cornerstone of which is the multibillion-dollar Bapco Modernization Programme (BMP).

The BMP will allow Bapco Refining to increase its capacity by 42 percent, from 267,000 to 380,000 barrels per day. Parallel to this, the organisation is currently implementing many transformative initiatives that will support the future post-BMP operations and onward operational excellence journey. The BMP is not the end of the investment programme but rather a steppingstone into future opportunities under the umbrella of Bapco Energies and its national energy transformation plan.

The positive results achieved by Bapco Refining during the year 2023 would not have been possible without the wise direction provided by the Leadership of the Kingdom of Bahrain. We would like to express our deepest appreciation for their patronage, guidance, and support.

On behalf of Bapco Refining’s Board of Directors, executive management, employees and contractors, we extend our gratitude to His Majesty King Hamad bin Isa Al Khalifa, King of the Kingdom of Bahrain, His Royal Highness Prince Salman bin Hamad Al Khalifa, Crown Prince and Prime Minister, and His Highness Shaikh Nasser bin Hamad Al Khalifa, His Majesty the King’s Representative for Humanitarian Works and Youth Affairs and Chairman of the Bapco Energies’ Board of Directors for their continued support and guidance to the Kingdom’s energy sector.

Abdulla Jehad Al Zain Chairman, Bapco Refining Board of Directors

Chief Executive Officer Foreword

I am pleased to share with you the 2023 Annual Report under the theme Powering the Future: Energy Transition, This theme is reflective of transforming our 90 year old Company into a modern, sustainable, cost competitive and market leading organisation, and successfully serving our beloved Kingdom of Bahrain for decades to come.

The theme fosters a culture of developing talent from within Bapco Refining to lead the Company in the future by providing opportunities for our employees to ensure that they are ready and equipped for today’s challenges as well as anticipating their readiness for the future. At Bapco Refining, we feel that our most valuable asset is our human capital. Working together will result in a more thorough strategy with constructive dialogue, as well as business continuity and developmental possibilities to build and shape talent, and strengthen future leadership sustainability (develop tomorrow’s leaders today).

A significant milestone was achieved in the strategic investment plans of the Company, mainly the Bapco Modernization Programme (BMP). The BMP project achieved 175 million total project hours by year end, without any significant process safety event since its inception in February 2018. During the year 2023, it also achieved a tremendous personal safety milestone of over 80 million hours completed without a Lost Time Injury, which reflects over three years of work.

Throughout the year 2023, Bapco Refining continued in its role as a key contributor to community welfare and made significant contributions to the prestigious INJAZ Bahrain. In addition, Bapco Refining supported the community by generously sponsoring relevant enterprises and societies, as well as scholarship programmes for the Kingdom of Bahrain’s greatest academic prospects.

As Bapco Refining moves on to the next chapter in its corporate and operational excellence journey, we take great pride in the contributions made by our employees at all levels, who represent our most precious asset and actively embrace our new concepts, projects and initiatives.

In conclusion, on behalf of all Bapco Refining employees and contractors, I would like to express our sincere thanks and gratitude to the Wise Leadership of the Kingdom of Bahrain for their unwavering support, lauding the valued guidance of His Highness Shaikh Nasser bin Hamad Al Khalifa, His Majesty the King’s Representative for Humanitarian Works & Youth Affairs, Chairman of the Board of Directors of Bapco Energies, and His Excellency Mr. Abdulla Jehad Al Zain, Chairman of the Board of Directors of Bapco Refining.

Dr. Abdulrahman Jawahery Chief Executive Officer, Bapco Refining

Board of Directors

Mr. Abdulla Jehad Al Zain Chairman

Mr. Yusuf Abdulla Taqi Director

Mr. Yusuf Abdulla Humood Director

Mr. Saeed Husain Abdulrahman Director

Mr. Ahmed Yusuf Taleb Director

Mr. Mark Thomas Deputy Chairman

Executive Management

Ms. Afaf Zainalabedin Deputy Chief Executive Human Capital & Corporate Services Acting Chief Financial Officer

Dr. Thomas Schaffers Chief Commercial Officer Corporate Strategy & Commercialization

Mr. Luc Smets General Manager Refining

Mr. Firdaus Panthaki General Manager Marketing, Sales & Supply

Mr. Gaetano De Santis General Manager Reliability & Maintenance

Ms. Afshan Akhtar Chief Legal Counsel, Board Secretary & Corporate Governance Officer

Mr. Robert Achleitner General Manager Engineering

Mr. Ibrahim El-Gazzar Bapco Modernization Programme (BMP) Project Director

Dr. Abdulrahman Jawahery Chief Executive Officer

Mr. Eugen Negutu Chief Information & Digital Officer

Mr. Hassan Ali Bahram Senior Manager Refining & Bapco Modernization Programme (BMP)

Mr. Fouad Haddad Senior Manager Project Execution

Sh. Abdulla Khalifa Al Khalifa Senior Manager Commercial Sales & Trading

Mr. Ahmed Al Arabi Senior Manager Procurement, Contracts & Warehousing

Mr. Ahmed Khalil HSE Director Bapco Modernization Programme (BMP)

Ms. Dana Bukhammas Senior Manager Human Capital

Mr. Mahavir Kothari Senior Manager Finance

Mr. Jason Taylor Deputy General Counsel

2023 Highlights

His Highness Shaikh Nasser bin Hamad Al Khalifa, His Majesty the King’s Representative for Humanitarian Works and Youth Affairs, Chairman of Bapco Energies Board of Directors inaugurated the Main BMP Control Room

The Main BMP Control Room was energized and inaugurated by His Highness Shaikh Nasser bin Hamad Al Khalifa, His Majesty the King’s Representative for Humanitarian Works and Youth Affairs, Chairman of Bapco Energies Board of Directors, in July 2023.

Below are some of Bapco Refining highlights during the year 2023:

The Bapco Modernization Programme (BMP) Control Room was energized and inaugurated by His Highness Shaikh Nasser bin Hamad Al Khalifa, His Majesty’s the King Representative for Humanitarian Works and Youth Affairs, Chairman of Bapco Energies’ Board of Directors, in July 2023.

Bapco Refining significantly reduced and maintained lower operating costs compared to previous years. This was managed without impacting the Refinery's safety, reliability or daily operations. The year 2023 was one of the most reliable Refinery performances in its history.

A middle distillates yield record high of 59.9% was achieved in 2023 which is the highest figure ever recorded in the history of Bapco Refining.

Bapco Refining employees achieved 13.6 million Bapco Refining and contractor employee hours without a Lost Time Injury (LTI) or Non-Lost Time Injury (NLTI), which is the highest milestone achieved.

The 2023 planned Turnaround and Inspection Shutdown was completed safely and successfully for 12 processing units in two overlapping phases.

No. 2 Berth and No. 4 Berth were successfully commissioned and returned to service on 14 December 2023 after BMP modifications were completed.

The Margin Improvement Initiatives (MII) estimated benefit exceeded the figures achieved in the previous years, despite the volatile market conditions.

The first large pieces of rotating machinery, the Instrument Air Compressors, were successfully commissioned.

Bapco Refining has awarded more than 39 scholarships and over 248 employees’ children received financial assistance for their university education.

The Legal Department facilitated and managed the registration of the Bapco Refining Trademark and its product Trademarks in over 100 countries.

The Legal Department reviewed, drafted and negotiated over a thousand agreements and successfully managed claims over US$ 100 million.

Ms. Afshan Akhtar, Chief Legal Counsel, was appointed as a judge for the ALB Middle East Legal Awards 2023.

The Legal Department incorporated the Awali Hospital Company as a wholly owned subsidiary of Bapco Refining and drafted and managed the execution of the Service Level Agreement (SLA), Master Services Agreement, the Asset Transfer Agreement and Lease Agreement.

Environment, Social and Governance

Environment, Social and Governance

The newly established Environment, Social and Governance Department at Bapco Refining in April 2023 had a positive contribution to the green footprint of the Company.

Greenhouse Gases (GHG) Emissions Report - Bapco Refining Greenhouse Gases (GHG) Emissions Report for 2022 was issued in February 2023, covering Scope 1, Scope 2 & Scope 3 emissions from sold products.

Bapco Refining Re-certified for ISO 14001:2015 Environmental Management SystemFollowing a comprehensive and successful audit by Det Norske Veritas (DNV) in October 2023, Bapco Refining was re-certified for ISO 14001:2015 Environmental Management System (EMS) for the next three years effective 7 January 2024.

Global Reporting Initiative (GRI) Training - Training in the internationally recognized standards for Sustainability Reporting GRI standards, was provided to management and nominated employees in November 2023, in preparation for Bapco Refining’s third Sustainability Report covering the period 2022-2023.

Installation of Net Metering System for Bapco Refining Solar Installations - The net metering system was installed for all solar installations at Awali Township in coordination with the Electricity and Water Authority (EWA). This will enable Bapco Refining to export the excess power generated to the national grid, hence minimizing the electricity bills.

Energy Conservation Campaign - The campaign started in November 2023 with the objective of raising awareness on the importance of energy saving and to encourage everyone to embrace the energy conservation culture, was concluded. As part of the campaign, multiple quizzes, surveys, and knowledge sharing sessions were undertaken, including a knowledge sharing session and energy conservation booth by Electricity and Water Authority (EWA). The campaign was successful, with good participation from Bapco Refining employees, and the inclusion of external stakeholders had a positive impact.

Groundwater MonitoringThe six-monthly groundwater monitoring programme was completed for the Refinery and Sitra to identify any potential groundwater contamination from historic operations.

ESG Policy - Bapco Refining Environment, Social and Governance (ESG) Policy was issued on 24 December 2023, in alignment with Bapco Energies ESG Policy and the Kingdom of Bahrain’s economic vision 2030.

Corporate Governance

Corporate Governance

The key priority of Bapco Refining’s Corporate Governance direction is to ensure that sustained and growing value is generated and delivered to the government of the Kingdom of Bahrain, business partners, and employees.

In 2023, the Company reaffirmed its pledges to drive sustainable growth while delivering best-in-class service to its customers. Bapco Refining believes that by having a high-quality corporate governance framework and complete information transparency, the Company will generate value for the shareholder and contribute to the wider community. Thus, Bapco Refining adopted and implemented a complete corporate governance framework in line with the Corporate Governance Code of the Kingdom of Bahrain (2018).

Internal Audit

Internal Audit delivered 16 Internal Audit assignments during 2023 in line with the Bapco Refining Board approved audit plan. The Internal Audit assignments focused on the areas of highest risk of value leakage and value erosion for the Company. In addition, the Internal Audit Department fostered a culture of engagement with the business through knowledge sharing sessions, stakeholder communications, and auditee surveys. Robust Audit Quality Assurance and Improvement (QAIP) has been implemented to ensure conformance with professional practices.

Enterprise Risk Management (ERM) and Compliance

ERM and Compliance form the second line of defense in the Company and are responsible for Risk Management, Business Continuity Management (BCM) and Compliance Management. This is an Independent Department that reports functionally to the Bapco Refining Audit & Risk Committee (BRARC) and administratively to the Chief Executive Officer (CEO). In addition, the team facilitated the Company successfully passing the ISO22301:2019 surveillance audit and maintaining the Business Continuity Management System International Certificate.

Information Security Governance

The Information Security Team led various initiatives to identify, protect and manage cyber and data privacy risks.

Operating Performance

Operating Performance

Refinery Operations

In keeping with recent years, the Refinery achieved some remarkable operational performance milestones and records in 2023. The Refinery saw several record-breaking performances, due to an Operational Availability of 96.1%. This achievement places Bapco Refining at world-class performance level and is a reflection of the whole Company’s team efforts.

Safe Operations

In 2023 Bapco Refining delivered a world class safety performance for both process safety (Tier1 Process Safety Event (PSE) rate of 0.01, Tier2 PSE rate of 0.01) and occupational safety (Lost Time Injury rate 0.01, Total Recordable Injury rate of 0.02). This site performance in 2023 was substantially better than the 5-years average (2018-2022) for the International Association of Oil & Gas Producers (IOGP) and Bapco Refining itself.

Refinery Yields

During the year 2023, the Bapco Refining Refinery performed exceptionally well, maximizing the production of high value products at the expense of the low value products. An all-time record was broken, Bapco Refining middle distillates yield reached 59.9%, boosting the Company’s profit despite the challenging volatile and dynamic global market. This was done by optimizing the crude run and unit’s operations, maintaining high levels of asset reliability and importing economic feedstock material to capture opportunities for maximizing value generating units.

Refinery Performance in Perspective

Financial losses due to incidents that affect production are referred to as “Lost Profit Opportunities” (LPO). Bapco Refining incurred an LPO of US$ 0.136 per barrel of crude in 2023 —better than world-class performance benchmark. Low LPOs are a direct reflection of the dedication of employees and their understanding of reliability factors affecting the financial performance of the Company.

Margin Improvement Initiative

Company Divisions collaborated to identify and implement opportunities that boosted the refining margin above ordinary business optimisation without jeopardising operational safety or supply reliability.

The collaboration between the various divisions enabled the identification of over US$ 33 million in 2023. The following initiatives made the greatest contributions:

• Cutterstock imports as feedstock to Fluid Catalyst Cracking Unit (FCCU) and for Fuel Oil blending which enabled the maximization of gasoline and diesel production.

• Grade optionality premium from producing higher priced diesel products against our main diesel product which indicates supply chain planning team agility towards the shifts in demand in global market.

• For the first time in Bapco Refining history, imports of Atmospheric Residue were acquired to capture the opportunity of utilizing the spare capacity in Vacuum Distillation Units specially during low crude run operations.

Refinery Mass Loss

In 2023, as a result of the teams collective efforts, the overall average flared quantity was reduced to 123 MSCFH, surpassing the target of 159 MSCFH. This achievement is a historic record in the history of Bapco Refining and has resulted in a cost-saving of US$ 4.4 million. Additionally, the Company successfully achieved the target mass loss of 0.56 wt.% three times during the year, in the months of February, May, and June 2023 despite the challenging events the refinery had.

Environmental Performance Index

The Environmental Performance Index (EPI) improved steadily from the last couple of years due to the excellent performance of the Induced Air Flotation unit (IAF), a low number of oil spills, and low Sulphur Oxide (SOx) emissions. The current performance of 8.35 exceeds the target of 8.00 and the 5-year average performance of 7.63. This is a testament to Bapco Refining’s persistent efforts towards reducing the environmental impact and meeting its commitment to stakeholders and the community.

Engineering

The year 2023 witnessed an exciting period for the Bapco Refining’s Engineering Division as it has formulated its organization restructure. The new organization driven to streamline processes on business needs, project delivery, operational support, harbouring best practices and utilize Bapco Refining’s Human Capital more efficiently and improve results sustaining the business.

The focus on constant engineering capability development continued with the investment in training and development, with a significant increase to eleven thousand hours compared to five thousand five hundred hours in the previous year. The Bapco Modernization Programme (BMP) rotation program was initiated to innovate training delivery for young Bahraini engineers from the division and provide an opportunity to deepen their understanding of the assets to be delivered, gain knowledge from international expertise, and expand their project delivery techniques. Additionally, the division has collaborated with engineering manpower supply partners to complement existing abilities and future engagement with specialist international engineering offices to support in project delivery.

The division advanced operations with multiple automation & digitalization initiative implementation such as the Operational Technology PI Vision Dashboard Application, Upgrading of DCS User Interface to Advanced Operator Graphics (AOG) at Low Sulphur Diesel Production Plant (LSDP) and Operator Training Simulator (OTS) for 7CDU/ VDU 3D Virtual Reality (VR). Whilst delivering a portfolio of CAPEX projects, the team has collaborated with the Information Technology & Digital Department (ITD) in developing the first iteration of a project performance dashboard internally in accordance with Agile methodology. The CAPEX portfolio for 2023 consisted of 107 projects (58 inflight/49 new). These projects aim for safe and optimized refining operations.

Reliability and Maintenance

Reliability and Maintenance

Solomon Mechanical Availability (24 Months Average) at the end of 2023 was 97.4% despite eight (8) clock resets which occurred in 2023. It is the third consecutive year that the Mechanical Availability exceeds 97%, ranging between 97.1% and 97.5%. This is evidence of a resilient system, with fast reaction to unplanned events in a safe and efficient manner, minimizing their impact to reliability.

HUB-2 Planned Shutdown #1H2 Reformer pigtail and hot collector repairs

In Q1 2023, Bapco Refining successfully completed HUB-2 Turnaround & Inspection consisting of 12 refinery process units, with zero Lost Time injuries (LTI) and zero Non-Lost Time injuries (NLTI) as per schedule. Bapco Refining and contractor personnel worked 1.8MM hours during the T&I. This is the second most difficult T&I performed in terms of complexity and volume of work at Bapco Refining. Between 2022 Hub1 T&I and 2023 Hub2 T&I, approximately 4 months of high intensity T&I/shutdown work was executed safely within a period of 7 months.

Procurement, Contracts & Warehousing

Procurement, Contracts & Warehousing

Throughout

the year, the Procurement & Contracts Department has made substantial progress in various areas, reinforcing commitment to excellence, ethical practices, and cost efficiency.

One of the significant milestones accomplished by Procurement & Contracts was the successful implementation of a new organization structure, which aims to enhance operational efficiency, streamline processes, empower team members and respond effectively to the dynamic demands.

The Department made US$ 30 Million savings through various value creation initiatives such as negotiations and KPIs.

Procurement & Contracts has also achieved the prestigious Chartered Institute of Procurement & Supply (CIPS) Ethical Accreditation, which recognizes Bapco Refining’s unwavering commitment to upholding the highest ethical standard in procurement & contract management.

The Department supported the planned shutdowns project by ensuring 100% materials availability on site for maintenance jobs.

Moreover, and to further improve compliance and governance over the procurement process, the department established a Tender Compliance Committee and Contracts Management Committee.

Various tasks were conducted for inventory optimization and enhance warehouse operations which have resulted into more efficient utilization of resources and reduced stockout of critical spares required for the reliability of the equipment.

Bapco Refining envisions all employees being able to maximize their contributions to the Company for the mutual benefit of themselves and the Kingdom of Bahrain. The Company provides a world-class service to its varied workforce, which includes Bahrainis as well as a multinational workforce from over 41 countries from across the world.

For many years, broad programs in craft and technical skills training have been at the heart of Bapco Refining’s training and development initiatives which has now been expanded to include a full featured industrial training hub which will ensure that the correct person is in the correct position with the relevant competencies at the right time for all employees. The Company takes the responsibility of creating the next generation of Bahraini leaders across all disciplines, from plant operations to marketing, extremely seriously. Extensive efforts have been made by Bapco Refining, and will continue to be made, to ensure that Company employees and contractors have the skills required to fulfill the Kingdom’s Economic Vision 2030.

Recruitment

Bapco Refining has been successful in hiring and training employees for its current and future needs. Growth plans, retirement, and normal attrition all contribute to the organization’s need to attract high caliber employees who will help achieve its objective.

Bapco Refining has set a goal to recruit 500 Bahrainis at all levels over the next few years as part of its pledge to increase the Bahrainisation population in the company with 84.2% of this target having been achieved. A total of 421 Bahrainis have been recruited from October 2021 to December 2023.

Training & Development

The Training & Development Department has made huge strives in their objective of developing the Human Capital of Bapco Refining to ensure an engaged, motivated, innovative, and competent workforce. This was achieved through a multifaceted approach to training & development utilizing varying and modern delivery techniques, including the use of blended learning, classroom learning, on the job training (OJT), “immersive” learning experiences and simulations using virtualisation videos, 3D “fly through” web-based learning, Virtual and Extended reality. A “fear of heights” module utilizing VR has been developed to determine if a person is able to “work at heights” and will be used as a recruitment tool for the future.

In addition, 43% of the overall Bapco Modernization Programme (BMP) training has been completed to date, with 53,000+ hours of training on “processes and systems (Unit school)”and 33,000+ hours of on-the-job training (OJT) completed during the year. All outside operator training for all of the new BMP units has been completed except for on-the -job training.

Furthermore, 7 of the 9 plant specific Operator Simulators have been delivered and training has started, allowing the training of our employees prior to completion of the construction of the plants. A virtual reality module has been developed for the Crude Distillation unit allowing the Outside Operators to “experience” the new Crude Unit, familiarizing themselves and executing tasks (operating the plant), allowing the entire crew to be trained using this modality.

In 2023 training and development team kicked off the level 2 of succession planning process which involved the next level of managerial positions (Superintendent Level) as well as the critical positions, it concluded with approximately 158 succession plans and 277 successors (future leaders) to be prepared and developed. Development Plans for potential successors for Manager and higher positions were activated in 2023, by ensuring the 70-20-10 principle is applied. (70% on the job learning, 20% through social learning and coaching, 10% formal classroom-based training)

Trade Unions

Bapco Refining has two trade unions, and the Company’s relationship with its unions is characterized by common principles, respect, professionalism and transparency through open communication. The Company and the unions collaborate well to express Bapco Refining’s sentiments of unity and support, and that relationship will continue into 2023 and beyond, for the best interest of Bapco Refining employees.

Information and Digital Technology

Information and Digital Technology

Digitalisation

In 2023, Bapco Refining took significant steps towards an integrated and consolidated IT digital infrastructure across the Bapco Energies group, with the aim to streamline operations, enhance efficiency and quality of service, and facilitate better communication and collaboration.

The Company continued its digital transformation journey, keeping the focus on value creation. Our Digital Factory has delivered more than thirty digital products in the areas of data and analytics, AI, and mobility, including a Digital Twin prototype of one refinery unit.

The data culture programs continued with the goal of improving data literacy across the company, with 60 data champions receiving structured hands-on training on data analytics techniques and self-service Business Intelligence, and the Data Literacy program pilot being completed with a first batch of 100 users.

We continued to invest in the future generation through the IT and Digital Graduate Trainee Program and by supporting the education, training, and development of our employees, as well as collaborating with academic institutions and industry associations.

Cybersecurity

Bapco Refining strives to protect its assets, operations, data, and reputation from the increasing cyber threats in the oil and gas industry. Keeping Bapco Refining free of security vulnerabilities and potential security risks is essential for the whole business.

Key actions 2023

• We continued to operate the cybersecurity training awareness program DEFEND for our employees.

• We continued to run a consistent cybersecurity program that bundles all projects related to IT and OT security, which lead to an increased level of resilience and preparedness against cybersecurity threats.

• We ran comprehensive IT/OT security assessments and penetration tests on our networks and platforms.

• We started implementing a data classification and data labelling tool that will enable us to apply relevant security policies and controls to protect data according to its confidentiality level.

Bapco Refining is dedicated to continuously improve its cybersecurity posture, increase the information technology and digital maturity level, to further enhance cyber defence capabilities and cyberthreat resilience, and to be certified according to the ISO 27001 standard.

We believe that cybersecurity is a shared responsibility and a key enabler of our sustainability, we will continue to invest and innovate in our cybersecurity capabilities and solutions, working with stakeholders and partners to create a secure and sustainable future for the industry and society.

Modernization Programme (BMP)

Bapco

Bapco Modernization Programme (BMP)

Bapco Refining is transforming into a more competitive, profitable, environmentally friendly, and complex state-ofthe-art facility through the biggest capital project executed in its 90+ year history, ready to service the industry’s demands and Kingdom of Bahrain’s Vision 2030. The multibillion-dollar Bapco Modernization Programme (BMP) investment at the refinery will support the Kingdom of Bahrain’s long-term socioeconomic sustainability by converting Bapco Refining into one of the region’s most competitive and environmentally compliant refineries.

When operational, the Company’s profit potential will essentially be doubled due to a 42% increase in capacity to about 380,000 barrels per day. Its product slate will better meet worldwide market demand and the new worldclass assets will boost energy efficiency by 28% while reducing the Refinery’s environmental footprint. At the core of the project are bottom-of-the-barrel improvements into more profitable middle distillate products, as well as the integration and upgrading of existing and new utilities to meet the most stringent international safety and environmental standards. Furthermore, the large energy savings provided by more modern processes and equipment will provide long-term cost competitive advantages to the Company.

Corporate Excellence

Corporate Excellence

Throughout the year 2023, Bapco Refining improved and implemented management systems to enable a sustainable and secure business.

The Corporate Excellence Department has conducted periodic management meetings to review and monitor the performance and efficiency of Management Systems including Quality Management System (ISO 9001:2015), Environmental Management System (ISO 14001:2015), Health and Safety Management System (ISO 45001:2018), Business Continuity Management System (ISO 22301:2019), and Asset Management System (ISO 55001:2014). The outcomes of these meetings created a roadmap for future development plans for the management systems within Bapco Refining.

Quality Management System

During 2023, external surveillance audits were successfully conducted onsite for two Quality Management System by the certification body as per the three-year audit cycle.

Operational Excellence & Governance

During 2023, the Operational Excellence & Governance Department exhibited remarkable dedication in formulating precise and comprehensive goals for both the Corporate and various departments/sections. Furthermore, they undertook regular assessments of progress, meticulously reviewing the outcomes and subsequently presenting their findings to the Bapco Refining Board of Directors.

Legal Function

Legal Function

The Legal Department is a critical component of any organization, responsible for managing the company’s legal affairs and ensuring compliance with applicable laws and regulations.

The Legal Department supports the company’s strategic objectives, by providing legal advice and guidance on mergers and acquisitions, intellectual property protection, and risk management. Overall, the Legal Department plays a critical role in ensuring the company’s long-term success and sustainability, and its contributions are an important part of the annual agenda.

Over the last 3 years the Legal Department has increased from 2 to 10 persons, comprising of 7 Lawyers, 1 Trainee and 2 Secretaries. The Legal team comprises of 50% men and 50% women, and all members are bilingual. By increasing the Legal Department size and talent pool, we have included all critical skills needed for the Bapco Modernization Programme (BMP) and the Base Business. Combined, Legal Department’s lawyers possess 70 years plus legal experience from working in the Kingdom of Bahrain, United Arab Emirates, Kingdom of Saudi Arabia, Qatar, United Kingdom, France and Japan.

In 2023, the Legal Department commenced its transformation project whereby it set up a full contract life cycle management system automating the contracting process from inception to execution, embedding Bapco Refining’s Schedule of Authorities and providing an audit history of the negotiation process. This allows routine work within acceptable legal risk parameters to be automated, freeing the Legal Department to add greater value to strategic and critical business initiatives. The legal transformation will make the Legal Department more efficient, streamlined and more effective as a value-add strategic partner, in preparation for the expansion due to the Bapco Modernization Programme (BMP). The first phase of this project relates to the legal documentation for the Sales and Marketing function.

Bapco Refining in Numbers

Bapco Refining in Numbers

In 2023, Bapco Refining achieved remarkable milestones across multiple fronts, exemplifying our unwavering dedication to excellence. From driving the energy transition and empowering female leaders to delivering top-notch healthcare services and implementing comprehensive training programs, our impressive numbers paint a vivid picture of success and growth. Bapco Refining’s commitment to innovation and superior performance continues to propel our way forward as an industry leader.

72,969 patients were seen at Awali Hospital and Refinery Clinic

Introduction of Hydrotherapy pool including Aqua Fitness classes at Awali Hospital.

661 documents were reviewed and updated as per a three-year review cycle on Document Management System (DMS).

62 new applicants were successfully onboarded by the Marketing, Sales and Supply teams.

A total of 302 inspection audit visits concluded for customers who have fuel quota.

2,870 Thousand Barrels of Cutterstock and Vacuum Gasoil were imported in 2023.

24,232 hours of contractor induction training related to safety.

148 Bapco Refining engineers joined institutions to seek the chartership status.

13,643 hours of English Training.

28,789 hours of technical training

38% Youth representation in Bapco Refining.

23% of the senior management level is occupied by female employees.

Introduction of the first medical insurance policy at Bapco Refining.

Facilitated 89 Sectional Governance meetings across multiple departments to improve performance.

Conducted 22 internal Integrated Management System audits to evaluate all five management systems of the Quality Management System.

4 new VIPs bedded Isolation Units equipped with Advanced Facilities at Awali Hospital.

Procurement, Contracts and Warehousing Department made US$ 30 million saving through various value creation initiatives such as negotiations and KPIs.

More than 300 new documents were uploaded on DMS.

Issued 90 spot contracts and 56 term contracts during 2023 for petroleum products and Abu Safah Crude.

Sadeem Card customers grew by 12.5% in 2023.

229,000 hours of training took place for Bapco Refining employees in 2023.

127 Young Professionals went through the Graduate Development Programme (GDP).

365 summer trainees were hosted at Bapco Refining during summer months.

64,978 hours of health, safety and environment (EHS) training

28,172 hours of functional training

900 assessments conducted for development and recruitment.

76 new scholars have been accepted as part of the Bapco Generation scheme.

Conducted 65 Operational Excellence training courses with 580 participants.

Carried out an Operational Excellence self-assessment on 11 processes, resulting in 75 improvement actions in various areas such as safety, monitoring, documentation, and environmental management.

His Majesty King Hamad bin Isa Al Khalifa, King of the Kingdom of Bahrain, recognizes Ms. Afaf Zainalabedin, Deputy Chief Executive Human Capital and Corporate Services, and Ms. Afshan Akhtar, Chief Legal Counsel by the National Action Pioneer Medal for their outstanding National Service

Recognitions

Recognitions

Bapco Refining Chief Executive Officer nominated as one of most influential figures in Bahrain’s economy

In a bid to identify the “Top 20” most influential figures in Bahrain’s economy, Al Bilad Newspaper has announced a list of 50 nominees from various industries across the Kingdom. This list of nominees has been selected by independent committees of specialists and subject matter experts aiming to recognize those who’s contributions made an impact on the economy of the Kingdom of Bahrain.

Bapco Refining Chief Executive Officer Recognized at the District 20 Toastmasters Annual Conference (DTAC) 2023.

Bahrain Society of Engineers Honors Dr. Abdulrahman Jawahery

In October 2023, Dr. Abdulrahman Jawahery, the Chief Executive Officer of Bapco Refining, was invited as the guest of honor at the Bahrain Society of Engineers’ celebration of Bahraini Engineer’s Day.

Bapco Refining honors 100 employees for their remarkable achievements.

Regional CSR Network recognizes Bapco Refining Chief Executive Officer.

90 employees of Bapco Refining were recognized at the International Labor Day events.

Awards

Bapco Refining Received Albilad Newspaper Corporate Social Responsibility (CSR) Platinum Award

In line with Bapco Refining’s unwavering commitment to community support and contribution to the national economy, Bapco Refining was awarded the prestigious Albilad Newspaper Corporate Social Responsibility (CSR) Platinum Award.

Bapco Refining Shines with Dual Honors at the HRM Summit Awards 2023

In October 2023, Bapco Refining was Awarded at the HRM Summit Awards 2023, the most esteemed and reputable HR awards in the Middle East. The awards were for the Best Employee Experience Initiative and the Best Learning & Development Practices.

Bapco Refining Delegates Recognized at the Future Workplace Awards 2023

In October 2023, among 280 companies in the Middle East, Bapco Refining was the sole Bahraini company to be short-listed for two award categories: Best Employee Engagement Strategy and Best Women Development & Leadership Program.

Bapco Refining Receives Prestigious Awards for Outstanding Support and Volunteerism at INJAZ Bahrain Annual Appreciation Ceremony 2023

Bapco Refining were honored with the prestigious ‘Volunteer Service Award’ for their outstanding commitment, collectively contributing over 1,688 hours of volunteer work.

Awards

Bapco Refining won the prestigious British Safety Council International Safety Award: Bapco Refining won an International Safety Award with Distinction from the British Safety Council in recognition of its commitment to keeping its workforce and workplaces healthy and safe during the 2022 calendar year.

Won “The Best in Country Award” from British Safety Council, for the best overall application with highest score in Bahrain for the international safety award.

Bapco Refining Receives Arabia CSR Award, for the Large Business Category Bapco Refining was honored by the Arabia Corporate Social Responsibility Network (ACSRN) in the 16th cycle of the prestigious Arabia Corporate Social Responsibility (Arabia CSR) Awards, in a ceremony held in Dubai, UAE in October 2023. Bapco Refining received the first runner up award under the ‘Large Business’ category for its efforts in corporate social responsibility and environmental sustainability.

Bapco Refining Receives Ethical Certificate and Signs a Memorandum of Understanding with The Chartered Institute of Procurement and Supply (CIPS)

In line with Bapco Refining’s ongoing efforts to elevate company procedures and practices, the company received the CIPS Global Corporate Ethical Procurement and Supply Chain Certification and the Kite Mark from The Chartered Institute of Procurement and Supply (CIPS)

Bapco Refining Attends NEBOSH Graduation and Awards Presentation Ceremony

In September 2023, The National Examination Board for Occupational Health and Safety (NEBOSH) held its annual graduation and awards ceremony at University of Warwick in England. Bapco Refining renowned for its commitment to occupational health and safety, was honoured to be invited as a distinguished guest to the ceremony. The organization played a pivotal role by presenting the prestigious “Dr. Jawahery Award” to two exceptional graduates of the NEBOSH International General Certificates in Occupational Health and Safety.

Bapco Refining received the Award as a platinum sponsor for Ship for World Youth (SWY) Program in May 2023.

Ms. Afshan Akhtar, Chief Legal Counsel, was recognized by the Legal 500 and included in the GC Powerlist Middle East for 2023. She was awarded the General Counsel – Honourable Mention at the Oath Legal Awards 2023. Moreover, she was selected by ACC to present the Middle East Legal Awards 2023.

Mohamed Ghassan Featured in UNESCO’s Regional Report on knowledge for youth-led climate action in the Arab Region: Mr. Mohamed Ghassan, Environmental Specialist, was selected to be featured as a knowledge contributor in the Arab region for his book The Layman’s Guide To Climate Change – a climate change explainer aimed at those with interest in the subject. The book was also ranked by Global Possibilities as one of “the best books about climate change of the 21st century.

Bapco Refining was Honored as a Valuable Partner in “Open Prisons Program” Graduation Ceremony

In October 2023, Bapco Refining was recognized and honored by the Ministry of Interior as a partner during the graduation ceremony of the first batch of beneficiaries of the “Open Prisons Program”. The company’s participation through Bapco INJAZ Bahrain in “The Company” program, which lasted for six months, played a pivotal role in their commendation.