Annual Reports 2022 - English

ENERGIZING A THRIVING FUTURE

His Royal Highness

Prince Salman bin Hamad

Al Khalifa

The Crown Prince and Prime Minister

His Majesty

King Hamad bin Isa

Al Khalifa

The King of the Kingdom of Bahrain

We are building a world class energy company. Today, we are embarking a transformative journey in the Kingdom’s oil and gas sector and there is no place more appropriate for us to start than the headquarters of the oldest oil company in the Arabian Gulf region. I am a true believer in building the skills and the capabilities at any age. I am delighted to see our youth (males & females) 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.

HH SHAIKH NASSER BIN HAMAD AL KHALIFA

Representative of His Majesty the King for Humanitarian Works and Youth Affairs Chairman of the Board of Directors of the Oil and Gas Holding Company

50+

million hours

Over 50 million hours of safe and reliable project hours without lost-time injury was achieved by the Bapco Modernization Programme, which is a record achievement for Bapco.

Largest Turnaround and Inspection

Completed the largest Turnaround and Inspection (T&I) in Bapco’s history on time, within budget, efficiently and reliably.

15.4

million hours

Bapco achieved a tremendous personal safety record of 15.4 million hours without a recordable injury in late September 2022 and went 284 days without a Refinery Reliability Clock (RRC) reset, which was also a record and illustrates the Refinery’s world-class reliability performance.

Key Performance Indicators

Achieved a record year in the Key Performance Indicators (KPI), which is a landmark achievement in Bapco’s history.

97% First female Acting Deputy Chief Executive (DCE)

Bapco attained the highest Operational and Mechanical Availability in its history - above 97% - achieving a first-quartile performance based on Solomon Associates’ 2020 study of refinery data for the Middle East, Europe, and Africa.

Ms. Afaf Zainalabedin was appointed as the first female Acting Deputy Chief Executive (DCE) in the Company’s history.

77+%

Bapco conducted the first-of-its-kind employee engagement survey, which assessed employee involvement and satisfaction. Bapco scored a higher engagement rate (77+%).

Authorised training organisation

Dr. Ghadeer Salman Alzaben became the first Bahraini woman to run the Hyperbaric Oxygen Treatment (HBOT) unit at Awali Hospital.

Women occupying technical positions

Women in Bapco are occupying technical positions and participating in major technical activities such as the Turnaround and Inspection processes. In addition, Bapco has initiated a recruitment campaign for Area Outside Operators that will include both male and female candidates.

In June 2022, the Legal Department became one of the first legal departments in a nonlaw firm in Bahrain to become accredited by the Solicitors Regulation Authority of England & Wales as an authorised training organisation to provide legal training to qualify as a solicitor in England & Wales.

632 documents

632 documents were reviewed and updated in the Document Management System (DMS), more than 137 new documents were uploaded and more than 100 employees trained on the system.

Women in Leadership positions

By 2022, female employees in the Company were occupying key and leadership positions. Women occupy 22% at a Senior Management level.

60 Operational Excellence training courses

60 Operational Excellence training courses were conducted with 700 registered attendees.

Dr. Ghadeer Salman Alzaben

CHAIRMAN OF BAPCO BOARD OF DIRECTOR’S FOREWORD

I am proud of the determination and commitment that Bapco Management and all the employees have continuously exhibited over 2022 in striving for the “Bapco of Tomorrow.”

Abdulla Jehad Al Zain Chairman, Bapco Board of Directors

The year 2022 will be remembered as a significant year of successes for Bapco (the Company), as it has been a catalyst year for change focused on improved performance, efficiency, risk management, compliance and governance processes as a backbone for the future sustainability of the Company.

The accomplishments for the year 2022 reflect the organisation’s steadfast and enduring dedication to fostering the sustainable growth and development of the Company, while maintaining the highest levels of safety and reliability and ensuring that the shareholders’ expectations are met and exceeded.

The Bapco Board, Bapco Management and Bapco employees thank His Majesty King Hamad bin Isa Al Khalifa for his unwavering vision for the future and His Royal Highness the Crown Prince and Prime Minister Prince Salman bin Hamad Al Khalifa for his continuous support, guidance, and encouragement, particularly during the challenging times faced in 2022 as we worked to fulfil our national duty.

The accomplishments for the year 2022 reflect the organisation’s steadfast and enduring dedication to fostering the sustainable growth and development of the Company, while maintaining the highest levels of safety and reliability and ensuring that the shareholders’ expectations are met and exceeded.

I would also like to thank His Highness Shaikh Nasser bin Hamad Al Khalifa, HM the King’s Representative for Humanitarian Work and Youth Affairs, and the Chairman of the Board of Directors of The Oil and Gas Holding Company (nogaholding) for his wise guidance and strong support as we embarked on a transformational journey to ensure the ongoing future success of the Company.

The year 2022 has been a challenging time for the Bapco Modernization Programme (BMP). We have had to navigate this project of national importance, through the demands of the Covid-19 pandemic, geo-political events and other considerations. The Board and Management of Bapco have worked tirelessly to drive the BMP forward without compromising quality and safety, and have been actively involved in providing direction and governance to the project. These efforts have resulted in the achievement of key project milestones, including the commissioning of the new loading arms at Bapco Wharf Berths 1 & 3, which has enhanced loading operations. The BMP is a key strategic project that receives the highest level of oversight and involves practically every single member of the Bapco family. I look forward to further milestones and successes being achieved during 2023.

I thank the Board Members, Executive Management, our employees and our stakeholders for their dedication to the Kingdom of Bahrain and commitment to the Company. I would also like to reiterate the Board’s appreciation for the support and assistance given to Bapco by our shareholder, The Oil & Gas Holding Company (nogaholding), the officials in government ministries and agencies, financial institutions, and the local and international contractors to successfully implement the Company’s plans and programmes.

I am confident that Bapco is ready to rise above the challenges and establish itself as a leading refinery not only in the region but also globally, leveraging best practices and performing at a world-class standard, in terms of safety, reliability, quality and operational efficiency. We are now well positioned to achieve our vision for the “Bapco of Tomorrow.”

ABDULLA JEHAD AL ZAIN Chairman of the Board of Directors

A BMP milestone saw the commissioning of the new loading arms at Bapco Wharf Berths 1 & 3, which has enhanced loading operations.

CHIEF EXECUTIVE OFFICER’S MESSAGE

Never before in the history of our 90+ year old Company, have so many initiatives and changes been carried out simultaneously.

Dr. Abdulrahman Jawahery Chief Executive Officer

This progress is being achieved against the backdrop of the multi-billion dollar expansion of the Bapco Refinery facilities through our strategic national project, the Bapco Modernization Programme (BMP), which is the largest investment ever carried out by the Company, and the largest and most complex project ever executed within the Kingdom of Bahrain.

2022 was a challenging and rewarding year in our journey to the “Bapco of Tomorrow.” I am very proud of how the Bapco family rose to the challenge through steadfast commitment and dedication, to foster the sustainable growth and development of the Company. The on-going implementation of the BMP, as well as the transformative initiatives in Finance, IT, Human Resources, Legal, Risk and Compliance, will ensure long-term sustainable operations and enhancement of our operational excellence journey.

As the industry emerged from the adverse impact of the COVID-19 pandemic on the global economy, market forces in 2022 were fluid and volatile. However, Bapco was able to ride out the waves and achieve a remarkable year in personnel and process safety, reliability, and financial performance. These numerous accomplishments serve as a testament to the professionalism and dedication of Bapco employees under strong and resilient leadership, that steered the Company to ensure that the stakeholders’ expectations were met and exceeded.

As Bapco moves on to the next chapter in its transition towards a more agile, modern, safe and profitable company, it takes pride in the contributions made by its most precious asset, its employees, who demonstrate the spirit of cooperation, teamwork and dedication that is the essence of the “Bapco of Tomorrow.”

Significant work has been accomplished on various projects to deliver Bapco’s strategic objectives of sustainability, financial stability, and people development while continuing the Company’s license to operate through strict adherence to personnel and process safety requirements and environmental standards and procedures. As documented in this annual report, we achieved a world-class health and safety performance within all aspects of our business and, in parallel, surpassed operational reliability expectations and achieved the highest ever mechanical availability for our facility.

We successfully completed the HUB1 Turnaround and Inspection (T&I), which has been the largest T&I undertaken by the Company in its history in terms of magnitude and complexity of the T&I scope of work.

Under the wise guidance of our Bapco Board Chairman, Mr. Abdulla Jehad Al Zain, fruitful discussions with our business partners took place during the year, leading to opportunities to improve the progress of the BMP and achieve our objective of a safe and reliable commissioning by the end of 2023. We also successfully completed the HUB1 Turnaround and Inspection (T&I), which has been the largest T&I undertaken by the Company in its history in terms of magnitude and complexity of the T&I scope of work. We also continued with a key driver behind “Bapco of Tomorrow,” which is the recruitment of the next cadre of Bahrainis, with the hiring of over 220 Bahrainis in 2022 for various technical and nontechnical positions. Bapco is creating opportunities for the next generation to develop and achieve their own success, making a fundamentally important contribution to the sustainability of the Kingdom. As a result of these efforts, I am extremely proud that the Company was awarded the King Hamad Youth Empowerment Award to Achieve Sustainable Development Goals, which is an internationally accredited award judged by a panel of external adjudicators. The Company has also received prestigious recognition for its efforts to recruit and employ the highest number of Bahraini nationals during the Ministry of Labour 37th annual ceremony honouring prominent private-sector establishments.

Largest T&I undertaken in Company’s history

CHIEF EXECUTIVE OFFICER’S MESSAGE continued

We are equally proud that our second sustainability report was issued during the year, for the period 2020-2021, which meets the rigorous requirements of the ‘comprehensive standard’, demonstrating Bapco’s support for the 17 Sustainable Development Goals (SDGs). The report also has a special feature on women at Bapco, and in particular, women of influence and seniority. As recognition for these diversity and inclusion efforts, Bapco received the HRH Princess Sabeeka bint Ibrahim Al Khalifa Award for Bahraini Women Advancement, which is a further validation of the strong and committed vision of the Company.

As Bapco moves on to the next chapter in its transition towards a more agile, modern, safe and profitable company, it takes pride in the contributions made by its most precious asset, its employees, who demonstrate the spirit of cooperation, teamwork and dedication that is the essence of the “Bapco of Tomorrow.” These accomplishments would not have been

possible without the continuous support of the Kingdom’s invaluable leadership, through the guidance provided by HH Shaikh Nasser bin Hamad Al Khalifa, Representative of His Majesty the King for Humanitarian Work and Youth Affairs, Chairman of the Board of Directors of the Oil and Gas Holding Company (nogaholding), and the esteemed Board of Directors, chaired by Mr. Abdulla Jehad Al Zain. On behalf of the whole Bapco family, I would also like to take the opportunity to thank His Majesty King Hamad bin Isa Al Khalifa, His Royal Highness the Crown Prince, and Prime Minister Prince Salman bin Hamad Al Khalifa for their unwavering support and directives to ensure that Bapco achieves its vision of being the best refinery amongst its peers.

Bapco continues on its transformative journey in the Kingdom’s oil and gas sector as it strives to achieve the “Bapco of Tomorrow.” I look forward to working with my colleagues within the Bapco Executive Management and with our professional and dedicated employees to achieve further successes in 2023 as we progress the BMP and start to bring systems and units online, as well as improve the commercialism, financial performance and governance of the Company. Our journey to become the “Bapco of Tomorrow” is progressing well, and the future is bright for our beloved Company and Kingdom.

DR. ABDULRAHMAN JAWAHERY Chief Executive Officer

The Bahrain Petroleum Company B.S.C. (CLOSED) - Bapco

Oil was discovered in Bahrain, making it the first country in the Arabian Gulf to discover oil.

HH the late Shaikh Hamad bin Isa Al Khalifa officially opened the Bahrain Refinery.

Bapco discovered large natural gas reserves and became the first company in the region to discover Khuff Gas.

The Bahrain Refinery Expansion Programme was completed with capacity of 250,000 barrels per day.

Bapco was formed by the Standard Oil Company of California (SOCAL).

The first shipment of 25,000 barrels of crude oil was exported on the ship El Segundo to Japan.

The AB pipeline was extended between Bahrain and Saudi Arabia.

The Bapco Apprenticeship Training Scheme was commissioned.

The Government of Bahrain acquired the assets of oil production and exploration in Bahrain and participated in the ownership of the Refinery with a 60% shareholding relative to Caltex’s 40%.

Dar An-Naft Oil Museum was inaugurated by HH the late Shaikh Isa bin Salman Al Khalifa.

Bahrain National Oil Company (Banoco) and the Bahrain Petroleum Company entered into a merger agreement.

The Lube Base Oil Project (LBOP) was officially opened.

A ground breaking ceremony for BMP took place.

Bapco celebrated its 90-year anniversary since inception. A stone-laying ceremony for BMP took place.

The LC-Fining Center of Excellence was opened.

1999 1992 2011 2019

Bapco became fully owned by the Government of Bahrain.

Low Sulphur Diesel Production Complex (LSDP) was commissioned and Bapco celebrated the 75th anniversary of the discovery of oil.

The new AB pipeline was inaugurated.

His Majesty King Hamad bin Isa Al Khalifa named His Highness Shaikh Nasser bin Hamad Al Khalifa as nogaholding Chairman of the Board of Directors.

WHO WE ARE

Our Purpose

Bringing energy to the world for the enduring prosperity of the Kingdom of Bahrain.

Our Mission Our Vision

To sustainably manage and operate an integrated energy business, leveraging best practices, and creating value for shareholders, customers, and employees.

OUR VALUES

To be recognised as a dynamic and empowering national energy company competing globally.

Enterprising Trusted Committed

We are empowered and dynamic. This attitude, along with our business mentality, enables us to innovate.

We are honest and respect others. By acting with integrity, we garner trust internally and externally.

We are determined and passionate. Personal accountability and teamwork produce the best results.

OUR TAGLINE

Empowering Progress

CERTIFICATIONS

ISO 45001:2018

Occupational Health and Safety Management System

Audit compliance without any non-compliance and areas for improvement

ISO 22301:2019

Business Continuity Management System Audit compliance without any comments

ISO 9001:2015

ISO 14001:2015

Quality Management System

Environmental Management System – periodic external audit

AWARDS

Bapco was awarded the King Hamad Youth Empowerment Award to Achieve Sustainable Development Goals (SDGs).

Bapco received HRH Princess Sabeeka bint Ibrahim Al Khalifa Award for Bahraini Women’s Advancement.

Dr. Abdulrahman Jawahery, Bapco’s Chief Executive Officer, received the Leadership Excellence for Women Awards and Symposium (LEWAS) Award for the Male Champion category.

Bapco received the Royal Society for the Prevention of Accidents (ROSPA) Health and Safety Award.

Dr. Abdulrahman Jawahery, Bapco’s Chief Executive Officer, was listed among Albilad’s 20 most influential figures in the Bahraini economy.

Bapco was awarded honorary plaque from Mr. Jameel bin Muhammad Ali Humaidan, Minister of Labour. The Company has received a prestigious recognition for its efforts to recruit and employ the highest number of Bahraini nationals.

BOARD OF DIRECTORS

MR. ABDULLA JEHAD AL ZAIN Chairman

MR. AHMED YUSUF TALEB ABDULGHANI Director

MR. MARK THOMAS Deputy Chairman

MR. YUSUF ABDULLA MOHAMED TAQI Director

MR. YUSUF ABDULLA ALI HUMOOD Director

MR. SAEED HUSAIN ABDULRAHMAN Director

EXECUTIVE MANAGEMENT

MR. GAETANO DE SANTIS General Manager –Reliability & Maintenance

DR. ABDULRAHMAN JAWAHERY Chief Executive Officer

MS. AFAF ZAINALABEDIN Acting Deputy Chief Executive Corporate Support & Chief Financial Officer

MS. AFSHAN AKHTAR Chief Legal Counsel

MR. ROBERT ACHLEITNER General Manager –Engineering

MR. MAHMOOD MIRZA General Manager –Special Assignment

MR. HAFEDH AL QASSAB Acting Deputy Chief Executive Technical & BMP Project Director

MR. MAHESH AMITHA Chief Audit, Risk & Compliance Officer

MR. MAHMOOD A. RAHIM BUCHEERY General Manager –Refining

MR. KHALID EBRAHIM BUHAZZA General Manager –Marketing, Sales & Supply

With support from the BBARC and Executive Management, the Corporate Governance Division has made significant progress in enhancing Bapco’s Governance, Risk and Controls.

To support the vision for enhanced Corporate Governance integral to the “Bapco of Tomorrow,” the Bapco Board of Directors established a “Corporate Governance Division” bringing together the Internal Audit, Enterprise Risk Management, and a newly formed Compliance Department under one umbrella. While the Departments continue to maintain independence in line management, work processes and outputs, they will benefit from enhanced sharing of Risk, Compliance and Controls matters to ensure Bapco’s Internal Audit Department is informed by robust Risk Assessment processes and Compliance requirements.

The Corporate Governance Division is headed by a newly appointed “Chief Audit, Risk and Compliance Officer” (CARCO) role reporting to the Bapco Board Audit and Risk Committee (BBARC) to maintain independence from Executive Management.

With support from the BBARC and Executive Management, the Corporate Governance Division has made significant progress in enhancing Bapco’s Governance, Risk and Controls through:

1. Development of a 3-Year Internal Audit and Cyber/Information Security Audit Plan with a sustainable Risk Model to analyse Bapco Divisional risks.

2. Completion of Risk Workshops across all Bapco’s Departments and Divisions to enhance Enterprise Risk Management (ERM) across the company.

3. Development of Risk and Control registers and Risk Matrices at Divisional and Enterprise Levels.

4. Establishment of a joint Risk Management Task Force to oversee Bapco Modernization Programme (BMP) risks.

5. Completion of a Compliance Gap assessment against all applicable laws and regulations affecting Bapco, along with a Compliance self-assessment process and reporting process.

6. Review of Cyber Security risks across Information Technology (IT) and Operating Technology (OT) and development of a Bapco Cyber Audit Plan.

7. Development of key Governance Policies, Procedures and Systems covering Whistleblowing, Conflict of Interest, and Counterparty Due Diligence (Know Your Customer).

The Corporate Governance Division was fully resourced by the end of 2022, and begins 2023 with a Board-approved Audit Plan to evaluate the effectiveness of Internal Controls, Risk Management, and Governance processes across Bapco.

OUR OPERATIONS

Bapco is dedicated to providing high-quality customer service through flexibility in cargo lifting schedules, cargo size, and product quality. The Company is constantly monitoring the oil market, seeking opportunities to maximise revenue from the sale of refined products and capitalise on niche markets as appropriate.

EXPORTS TO INTERNATIONAL MARKETS ABU SAFAA CRUDE OIL SALES

The pandemic caused a significant loss in global oil demand as many restrictions, including lockdowns, travel bans, border closures, and work-from-home measures, were put in place to mitigate the spread of Covid-19. Global crude oil prices collapsed throughout 2020 and 2021 to their lowest levels, as concerns over a virus-driven fall in demand overshadowed a historic OPEC+ agreement by the world’s biggest producers to cut production. Nevertheless, in 2022, the Russia-Ukraine war caused supply availability concerns within the market, which led to a significant increase in crude oil prices. Furthermore, a global economic recovery, coupled with China’s reopening via the removal of lockdown restrictions, led to an increase in crude oil demand. As a result, the markets witnessed global demand growth optimism towards Q4 2022.

Bapco markets the Government of Bahrain’s equity share of about 150,000 barrels per day (bpd) from the Abu Safah offshore oilfield, which is jointly owned by Bahrain and Saudi Arabia. The year’s sales of Abu Safah crude oil totalled 54.5 million barrels, all exported to markets east of the Suez, notably the Far East (with China having a 41.7% share of exports to this region) and Southeast Asia. The quantity of barrels exported in 2022 was nearly equivalent to that of 2021.

2022 ABU SAFAH CRUDE SALES

In 2022, Bapco managed to achieve a higher product sales premium in the spot market in comparison to 2021, 2020, and 2019, and generate value from this. Additionally, Bapco maintained its market share in terms of volume supply and secured stable outlets for its almost 79.89 million barrels of refined products during 2022.

REFINED PETROLEUM PRODUCTS SALES

The refining industry continued its recovery in 2022 in comparison to the pre-pandemic years as demand continued to increase. The demand for middle distillates increased significantly, and as a result, refining margins increased to unprecedented levels, incentivising many refineries around the world, including Bapco, to maximise their crude runs. In 2022, Bapco managed to achieve a higher product sales premium in the spot market in comparison to 2021, 2020, and 2019, and generate value from this. Additionally, Bapco maintained its market share in terms of volume supply and secured stable outlets for its almost 79.89 million barrels of refined products during 2022.

The Kerosene/Jet Fuel markets continued to recover from the pandemic, with sales increasing as travel restrictions were eased and borders opened. Moreover, an increase in sales of Gasoil was also observed as easing pandemic restrictions allowed for an upturn in economic activity. With the economics being in favour of Gasoil for most of the year, Bapco successfully optimised its operations and maximised routing kerosene to the diesel pool. The Fuel Oil market also witnessed an increase in sales as trade increased with the economic recovery in 2022, despite an increase in inventories due to higher refinery throughputs. Bapco managed to secure an outlet for the whole volume of the Fuel Oil at a very attractive price.

Following the exit of Neste from the Bahrain Lube Base Oil Company joint venture (BLBOC), Bapco was able to successfully conclude a deal that resulted in the transfer of the asset to the Government of Bahrain (nogaholding), while selling the 45% share of total production to Chevron.

Additionally, Bapco was able to successfully renegotiate its base oil offtake agreement with Shell International Trading Middle East Limited FZE, delivering an additional net margin of around US$102/MT.

79.89 million barrels

In 2022, a total of 79.89 million barrels of products were exported, with middle distillates accounting for 55.2% of sales. Black oil products (Fuel Oil and asphalt) followed at 23.3% and Naphtha at 17.9%.

Middle Distillates

Black Oil Products

Naphtha

OUR OPERATIONS continued

39.8% of export destinations

Middle Eastern countries were the biggest export destinations and accounted for 39.8% of export destinations, followed by Africa 17.9%, the Far East 14.5%, Southeast Asia 10.2%, Europe 6.3%, India 4.9%, South America 3.8%, and the USA 1.7%.

OUR OPERATIONS continued

The year 2022 closed with many positive developments. The industry saw remarkable annual growth compared to performance in 2021, owing to the easing of travel restrictions and pent-up demand for air travel.

SUPPLY OF AVIATION JET A1 FUEL

The year 2022 closed with many positive developments. The industry saw remarkable annual growth compared to performance in 2021, owing to the easing of travel restrictions and pent-up demand for air travel. Regions where travel restrictions were lifted earlier have seen a stronger recovery, reaching close to their pre-Covid levels of passenger traffic.

62% sales increase

Accordingly, Bapco’s Aviation Jet A1 fuel sales in 2022 were up 62%, reporting total sales of around 109 million US gallons in comparison to 2021, with total sales of around 68 million US gallons.

109 million US gallons in 2022

68 million US gallons in 2021

OUR OPERATIONS continued

Sales to the Local Markets

The end of the lockdown, along with effective health measures, led to substantial economic growth in the local market, which has been reflected positively by an increase in domestic sales of refined products since 2021. The total volume of refined product sales amounted to 11.3 million barrels, an increase of 9.0% year-on-year compared with 2021, thus maintaining the sales growth trend.

The dominance of more affordable Jayyid gasoline (91 RON) continued over the more expensive, higher-octane Mumtaz (95 RON) gasoline in the local market. As a result, Jayyid gasoline continued to account for almost half of the refined products sold domestically at 53%, compared to 51% in 2021. Mumtaz gasoline’s domestic market share increased moderately to 15.7% compared with 15% in 2021, while Super Gasoline (98 RON), the premium gasoline grade, accounted for less than 1%.

18.5%

Sales of ultra-low sulphur diesel accounted for 18.5% of the domestic sales (down from 20.5% in 2021), followed by Liquid Petroleum Gas (LPG) at 7.5% (down from 7.6% in 2021), and Kerosene and Jet Fuel at 2.6% (down by 0.2% from 2021). Asphalt accounted for the remaining 1.7% of local market sales.

79,500

of domestic sales bbl of 98 RON

A total of approximately 79,500 bbl of 98 RON was imported via seven cargo shipments throughout 2022, averaging one import every 52 days.

SUPPLY OF SUPER 98 TO THE LOCAL MARKET

The import operation of RON 98 (“Super 98”) gasoline saw a crucial change in 2021, moving away from the use of ISO containers to direct transfer between Sitra Wharf and Sitra Marketing Terminal. As this change was implemented to provide a time and cost-saving benefit (reduction of lead times from 37 days to 7 days while reducing costs by 18.7%), the direct import process has continued into 2022 to further capitalise on these benefits.

Ultra-low Sulphur Diesel 18.5%

Liquid Petroleum Gas (LPG) 7.5%

Kerosene / Jet Fuel

Asphalt

ENHANCED CUSTOMER SERVICE

Accepted at all 60+ service stations in the Kingdom of Bahrain, the Sadeem card maintains its dominance in fuel transactions at a corporate level in addition to providing customers with an industry-leading cashless payment experience. The launch of the Sadeem virtual card on the “Benefit Pay” mobile application empowered retail consumers to take advantage of contactless payment at all service stations. This led to a significant growth in the Sadeem card customer base and, subsequently, an upsurge in card transactions from 10% to 35%.

CREATING A BETTER TOMORROW

Notwithstanding the ongoing economic recovery, Bapco had a prosperous year in 2022. In just one year, we have made strides that have strengthened our position as the country’s petroleum business and allowed us to keep achieving our goals for overseas markets.

At Bapco, providing the greatest experience for our customers is our main focus. With our employees and customers at the centre of everything we do, we are working tirelessly to deliver the finest quality service. We are working to provide our employees and customers with increased convenience and the quality of service they desire, which will be made possible through digital innovation and a commitment to combining balanced economic growth with environmental responsibility. To support us in meeting our goals in this respect, we launched two new Oracle e-Business Suite (EBS) modules in 2022: iReceivables and iExpenses.

The iExpenses portal allows our employees to facilitate the reporting and reimbursement of expenses, while the iReceivables portal allows local and international customers to make detailed inquiries, review current account balances, dispute bills, apply credit notes, view and download reports, and complete specific transactions online.

OPERATING PERFORMANCE

In keeping with recent years’ performance, the Bapco Refinery achieved excellent asset reliability by going 284 days without a shutdown of any key process unit for longer than 24 hours.

The Refinery saw several record-breaking performances, thanks to Operational Availability of 97.1%, which is Q1 performance based on the Solomon Associate 2020 benchmarking study for Middle East, Europe, and Africa refineries. This achievement places Bapco at a world-class performance level and is a reflection of the whole Company’s team effort, covering oil processing, technical services, information technology, engineering, reliability and maintenance, power and utilities, risk management, oil storage and export, and many other supporting groups.

Crude Run

284 days without a shutdown

In keeping with recent years’ performance, the Bapco Refinery achieved excellent asset reliability by going 284 days without a shutdown of any key process unit for longer than 24 hours.

The crude run in 2022 was lower than budget (251.3 MBPD versus 255.2 MBPD), mainly due to optimisation related to market conditions, which were unfavourable in August and September. The annual crude run is improving as the global market recovers from the COVID-19 pandemic.

This commendable operational performance is a culmination of the strong management systems that the Company has in place and the dedication and professionalism of the Bapco team in the effective implementation of processes and procedures.

Refinery Yields

During the year, the Bapco Refinery likewise performed admirably. Maximum distillate yields continued to be achieved within the limitations of a volatile and dynamic external market.

Refinery Performance in Perspective

Financial losses due to incidents that affect production are referred to as “Lost Profit Opportunities” (LPO). Bapco incurred $0.165 LPO per barrel of crude in 2022—this is close to world-class performance. Low LPOs are a direct reflection of the dedication of employees and their understanding of the reliability factors affecting the financial performance of the company.

Margin Improvement Initiative

Refining and Marketing Divisions collaborated, for the third year in a row, to identify and implement opportunities that boosted the refining margin above ordinary business optimization without jeopardizing operational safety or supply reliability. The two initiatives that made greatest contributions are:

• Routing additional kerosene to the diesel pool in the Crude Distillation Units (CDUs) and No. 1 Hydrocracking Unit (1HCU), to capture the opportunity of the high price differential between diesel and kerosene.

• Using imported cutters as feed to the Fluid Catalyst Cracking Unit (FCCU) and as Fuel Oil blend stock.

Operational Challenges and Successful Adjustments

No. 1 Hydrocracking Unit (1HCU) catalyst changeout was originally scheduled for February 2022. However, due to scheduling constraints that required the shutdown to be postponed, the changeout was delayed by 6 months. In February 2022, the catalyst was close to end-of-run (EOR) conditions and faced other process limitations.

Several adjustments to the feed quality, operating conditions, and reactor temperature control strategy were made, allowing an extension of the catalyst cycle. 1HCU throughput was sustained at maximum capacity, and the Lube Base Oil Unit (LBOU) product properties were met up to the commencement of the Hub 1 Turnaround and Inspection (T&I) shutdown in August 2022. This success reflected the knowledge, experience, and expertise of the Bapco technical team.

In 2022, for the second year in a row, the highest value was achieved for the Mechanical Availability. Following the 97.1% in 2021, in 2022 the value of 97.4% was achieved, positioning Bapco in the first quartile of the Solomon Associate Fuel Study.

Process Safety

There was only one Tier 1 process safety event in 2022, and awareness has been raised to maintain and improve this performance through multiple safety campaigns held throughout the year.

Environmental Performance Index

The Environmental Performance Index (EPI) improved steadily during the year due to a low number of oil spills, good performance of the Induced Air Flotation Unit (IAF), and low Sulphur Oxide (SOx) emissions. The current performance of 8.3 exceeds the target of 7.80 and the actual performance of 7.60 in 2021. This is a testament to Bapco’s efforts towards reducing the environmental impact and meeting its commitments to stakeholders and the community.

Engineering

Bapco’s Engineering Division supported many improvement initiatives proposed by various divisions to support safe and reliable operations in 2022. A total of 76 projects were handled within Bapco’s facilities.

In line with the sustainability mission of the organisation, the focus on training and developing future engineering leaders was essential. A total of 5,566 hours were invested in Bapco’s engineers in classroom training sessions, seminars, and conferences, as well as knowledge sharing sessions within Base Business and the BMP, all of which contribute to preparing young Bahraini graduates for new challenges in the oil and gas sector over the next two decades.

Maintenance and Reliability

In 2022, for the second year in a row, the highest value was achieved for the Mechanical Availability. Following the 97.1% in 2021, in 2022 the value of 97.4% was achieved, positioning Bapco in the first quartile of the Solomon Associate Fuel Study. This moved Bapco Refinery to the top of the Chevron Refineries.

The new metrics that constitute the AVAILABILITY FACTOR, introduced in 2021, demonstrated a significant increase in the reliability and availability of all the equipment and assets. Therefore, for the second consecutive year, this improvement was associated with a significant cost saving, above $14 MM.

5,566 hours invested

A total of 5,566 hours were invested in Bapco’s engineers in classroom training sessions, seminars, and conferences, as well as knowledge sharing sessions within Base Business and the BMP.

Reliability and Maintenance Division initiated its adoption of the modern software ASSET PERFORMANCE MANAGEMENT by GE, a game changer in terms of management of data and simplification of work processes. The new software will be live in Q3 2023. The path to achieve the certification ISO55001 (Asset Management) was also initiated. The certification will be achieved in Q4 2023.

The Division strongly integrated with IPMT BMP Maintenance team, contributing significantly to the construction, pre-commissioning and commissioning.

The Largest Turnaround and Inspection (T&I)

From 19 August to 23 October 2022, Bapco successfully executed Hub 1 Turnaround and Inspection (T&I), the largest turnaround event in the Company’s history, both in terms of complexity and cost. The duration of the Hub 1 T&I was 66 days and involved the largest T&I work scope the company has ever seen. The unprecedented facilities and arrangements for summer work, thorough preparations and excellent teamwork, enabled the smooth execution of maintenance work and completion of the unit’s startup. The Hub 1 T&I provided a golden opportunity for the participation of young Bahrainis to gain practical experience in the different maintenance activities carried out during the T&I. In addition, at peak manpower of 3,600 people, over 290 Bapco employees actively participated in the activities.

Approximately 50% of Bapco employees engaged in the Hub 1 T&I were below 35 years of age, including 27 young female engineers, giving the Hub 1 T&I the distinction of being the T&I with the highest female participation ever.

During the T&I an unprecedented number of 81 HSE supervisors were present 24/7. 28 Air-conditioned shelters were provided, with 20 drinking water coolers and 50,000 refreshments. Over 2 MM of working hours were delivered, managing 480+ large equipment items and 2,300+ small equipment items.

The successful completion of Hub 1 T&I is further evidence of the high potential of young Bahraini engineers at Bapco and a sign of the bright future ahead for the new generation. During the execution of the HUB 1 T&I, the preparations began for the upcoming HUB2 T&I (planned early January 2023), with the execution of 700,000 working hours of preT&I activities.

EXCEPTIONAL PERFORMANCE

HUMAN

451 new recruits, highest number of hires in a year for the past 10 years

3,065 total Bapco employees

68% Bahraini employees Recruiting 500 Bahrainis between October 20212024, of which 59% has been achieved by the end of 2022.

over12% newly recruited employees are female

BAPCO MODERNIZATION PROGRAMME (BMP)

In August 2022, BMP achieved 50 million project hours without a Lost Time Injury (LTI), over 390 days, and with over 18,000 workers on site.

In August 2022, Distributed Control System (DCS), Emergency Shutdown (ESD), and Factory Acceptance Tests (FATs) were completed for the greenfield units.

In September 2022, the BMP Main Substation was energised.

In October 2022, the Cooling Water substation was energised.

In December 2022, Mr. Abdulla Jehad Al Zain, Bapco’s Chairman of the Board of Directors, toured Sitra Wharf after the commissioning of Berths 1 and 3 achieved Ready for Start-Up (RFSU) status.

AWALI HOSPITAL

Awali Hospital successfully completed NHRA facility inspection and license renewal.

104 employees were received First Aid Training.

Awali Hospital introduced a Dialysis Service with the High Dependency Unit (HDU).

In December 2022, the first loading shipment of diesel and lube oil was carried in the newly commissioned Berths 1 and 3.

Dobutamine Stress Test was introduced.

Self-Check-In service was introduced for Bapco employees.

HOPE system moved completely to paperless documentation.

DEXA body fat composition facility was activated in addition to Bone Mineral Densitometry (BMD).

Hyperbaric Oxygen Treatment (HBOT) was introduced for cancer patients and patients with diving injuries, acute ischemic insults and carbon monoxide toxicity.

We aim to foster a people-centric, performance-driven organisation that empowers progress. Our focus is to be agile and continue enhancing our people’s experiences.

Technology is continuously becoming more and more prevalent in the world at large. Human Resources is thriving to utilise available technology to operate efficiently, make informed decisions, and provide the best employee experience. A significant component (88%) of the HR Transformation has been implemented since the initiation of the project back in 2020 with the introduction of the Oracle Human Capital Management system (HCM).

When fully implemented, all stakeholders will benefit from improved service turnaround time and efficiency through an integrated learning and development platform, people analytics, end-to-end employee experience, and chatbots that are available 24/7. Once in place, a diverse, sustainable culture that is people-centric and performance-driven will be within reach.

A High Council for Training and Development has been established by the Company’s Executive Management in response to the increased drive to develop our personnel to meet the challenges of the “Bapco of Tomorrow.” The Bapco Modernization Programme (BMP) training to secure the necessary functional skill sets and the development of talents and successors is set by the Council as part of its strategic vision and direction for the Training and Development Department to undertake.

A High Council for Training and Development has been established by the Company’s Executive Management in response to the increased drive to develop our personnel to meet the challenges of the “Bapco of Tomorrow.

With the release of the “Resid Hydrocracking Unit (RHCU) Rounds Simulator”, a 3D-modelled virtualisation tool for navigating, identifying, operating equipment and assessing environmental conditions within the virtual plant, efforts to develop and use technology for training purposes to enhance understanding and recollection were realised. This tool makes it possible to train the RHCU workforce before BMP construction is finished, greatly benefiting Bapco by ensuring that employees are familiar with rounds and aspects of their jobs which would normally only be possible after a physical working plant is available. This enhances the Operator Training Simulation (OTS) models that Company employees will have access to in 2023, effectively enabling them to receive training in specific worst-case scenarios on the simulators (emulating the actual plant operation), similar to how an airline pilot would train on a flight simulator.

The rounds simulator for the RHCU and crude and vacuum distillation units (7CDU and VDU), as well as Working at Heights, are also being upgraded with virtual reality (VR) systems. These initiatives are aligned with Bapco’s ongoing internal e-learning and microlearning module development, which promotes information retention and meets the needs of knowledge seekers.

Bapco recognises that although technical competencies are essential for operations, reliability, and maintenance, all employees are a part of the collective organisation. As a result, the Company has placed a strong emphasis on staff development through the introduction of functional academies (focusing on the competency requirements of each functional area), knowledge management for knowledge sharing (24 sessions held), knowledge exchange, and knowledge transfer, as well as the identification and development of talent. To familiarise all employees with BMP’s functionality, a “Discover BMP” programme for engineers and a “BMP Familiarisation” programme for all other employees were introduced.

A leadership framework is being proposed for adoption in 2023, and leadership development has expanded in tandem with the growth of talent pools and successors. With 4 distinct mentoring levels (from scholar to graduate to HiPo to successor) and the introduction of mentoring as a development tool, there are presently 325 active mentees and 292 mentors registered on the mentoring platform. With the help of specific initiatives like “Women of Tomorrow,” which has 379 Bapco women enrolled in the “PlayBook” platform and enjoying master workshops by women for women, a greater emphasis has been placed on the development of Bapco women.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) IN BAPCO

Bapco is committed to the protection of health, safety, environment and welfare of its employees, contractors, and its neighbouring communities. This commitment is evident in its operating policy and business philosophy which provides special emphasis to achieving sustainable development across the three pillars of sustainability: social, economic, and environmental.

Bapco is one of the largest employers in the Kingdom of Bahrain, and is considered an employer of choice, which not only makes a significant economic contribution to our beloved Kingdom, but has been taking a lead in the advancement of the environmental and social fabric of our great nation since the Company’s inception in 1929.

Bapco’s strategies are aligned to achieve the Kingdom of Bahrain’s Economic Vision 2030 which is designed to balance the many conflicting needs of sustainability, fairness and competitiveness. At its heart is a shared goal of building a better life for every Bahraini. By achieving this vision, we have aligned the aspirations of our future generations with sustainable development. Bapco’s contribution to the Economic Vision is measured by alignment with the 17 Sustainable Development Goals (SDG’S) issued by the United Nations in 2017, which encompass technological advancement, environmental stewardship, economic progress and societal welfare.

By achieving this vision, we have aligned the aspirations of our future generations with sustainable development.

Bapco’s contribution to the Economic Vision is measured by alignment with the 17 Sustainable Development Goals (SDG’S) issued by the United Nations in 2017, which encompass technological advancement, environmental stewardship, economic progress and societal welfare.

Bapco has also adopted the Ten Principles of the United Nations Global Compact (UNGC) on human rights, labour, environment and anti-corruption. These Principles are intrinsic to Bapco, and our strategies and operations are aligned with these principles, so that they are part and parcel of our culture and day-to-day license to operate.

Collectively, Bapco’s contribution to sustainable development, UN 17 SDG’s and UNGC 10 Principles is highlighted in detail in our latest Sustainability Report for 2020/2021 which can be accessed via https://www.bapco.net/en/page/we-care/#we-care

More than

37,000 people attended

Bapco supports community wellbeing awareness via campaigns and events, for example the Family Day which was held in January 2020 at the Bahrain International Circuit and attended by more than 37,000 people.

Bapco’s Environment, Social and Governance (ESG) Initiatives

In Bapco, sustainability is a journey which is reflected in its ESG initiatives as highlighted in the following text. All of Bapco’s sustainable development initiatives can be linked to the 17 SDGs and the Ten Principles of the United National Global Compact (UNGC).

The significant size of the Bapco Modernization Programme (BMP) project provides both short and long term opportunities for the local labour market and local supply chain. The BMP has created new skilled positions filled from positions advertised locally within the Kingdom. In addition to this very significant contribution to the local economy, Bapco makes special provision for providing to the community during particular times of the year. For example, during the holy month of Ramadan, Bapco provides all operators with meals during Iftar and arranges food distribution campaigns to the community, thereby supporting the SDG goals of no poverty and zero hunger and the UNGC principles of labour, human rights and the environment.

Under good health and wellbeing, all Bapco employees have access to the Refinery clinic and free treatment at Awali hospital. Bapco supports community wellbeing awareness via campaigns and events, for example the Family Day which was held in January 2020 at the Bahrain International Circuit and attended by more than 37,000 people. Each month specific health campaigns have been run during 2022 on various topics such as breast and prostate cancer, diabetes and hypertension awareness.

Bapco plays a significant role in providing quality education in the Kingdom of Bahrain. Bapco provides the company with the best skilled workforce necessary for the future through its Training and Development Department. Along with the support provided to the employees and students, Bapco employees participate in the INJAZ programme, lecturing to students on science and engineering. Bapco also believes in equal opportunities irrespective of gender and has many women holding senior appointments across Bapco, supporting the SDGs on gender equality and the UNGC human rights and labour principles. Bapco has specific policies designed to tackle inequality, implemented by a dedicated team who work with contractors to monitor any potential breaches in Bapco policy. Bapco has for several years inducted both men and women trainees into engineering disciplines. Bapco’s meritbased International Scholarship Programme provides financial support for students of all backgrounds to study at some of the best institutions worldwide.

Bapco continues to provide new opportunities through the BMP expansion, creating one of the most technologically advanced Refineries in the world. CLG, NAPCON, and Bapco have opened the LC-FINING Center of Excellence in Bapco Training and Development Department. The Department also plays a leading role in training for existing employees throughout their career at Bapco. In addition, Bapco has a strong track record for technological innovation. Bapco has an Innovation Centre to nurture new ideas suggested by employees, using initiatives such as the ‘Seed’ programme to recognise employees for their innovative ideas. Bapco additionally participates in community initiatives designed to encourage innovation, such as the Green School Award Scheme launched in 2005, aimed at the government secondary schools to identify and pilot sustainability-related ideas. This supports the SDG’s decent work and economic growth goal and also industry and innovation, as well as UNGC principles.

Bapco has undertaken many recent initiatives to improve social and environmental capital within the Kingdom of Bahrain, such rehabilitating community gardens for the public benefit and use.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) IN BAPCO

Bapco has also invested in the latest technologies to minimise water abstraction required for refining. Bapco’s Waste Water Treatment Plant and Sewage Treatment Plant (STP) uses stateof-the art advanced Membrane Bioreactor Technology for water and effluent treatment. To support SDGs relating to life on land and life below water, Bapco has been conducting regular marine assessments since 1981 around the Bapco Refinery and Sitra operating facilities to monitor marine ecosystems.

HEALTH, SAFETY, AND ENVIRONMENT

Throughout 2022, Bapco health, safety, and environment displayed an extraordinarily high level of readiness, adapting to the changing business environment and corporate demands, while meeting and exceeding its objectives. Bapco’s 2nd Sustainability Report was published for the year 2020-2021, meeting the requirements of Comprehensive Level as per the internationally recognise Global Reporting Initiative (GRI) Standards for sustainability reporting.

New isolation of equipment procedures were introduced and implemented in Corporate Services Department (CSD), Local Marketing Department, and all occupied and unoccupied buildings. In March 2022, Bapco held its 57th Annual Health, Safety, and Environment (HSE) Award ceremony to recognise employees and contractors for their outstanding health, safety, and environment performance.

In March 2022, Bapco held its 57th Annual Health, Safety, and Environment (HSE) Award ceremony to recognise employees and contractors for their outstanding health, safety, and environment performance.

In April 2022, Bapco marked the annual World Day for Safety and Health at Work by encouraging employee participation in a number of safety activities throughout the Company. In June 2022, Bapco celebrated the United Nations World Environment Day under the slogan #OnlyOneEarth.

In August 2022, Bapco hosted the first-post-COVID 19 annual Joint Venture Safety Culture Team (JVSCT) meeting to exchange information about safety culture best practices and lessons learned. Moreover, a department delegate visited Singapore Refining Company (SRC) and Chevron Oronite in Singapore to transfer knowledge on contemporary HSE related issues, to help leverage safety culture best practices across JV organisations.

In October 2022, Bapco chaired and supported the 2nd RECSO EnviroSpill conference under the theme “Sustainable Clean Seas.” The conference provided a dedicated platform for professionals from major industries to discuss, debate, and share knowledge, expertise, and experience on different technologies in the field of oil spill management and environment preservation.

Moreover, Bapco’s Fire Rescue Team’s capabilities and readiness were enhanced through several training exercises during the year, including a tank fire drill. 24 employees attended the rescue power tool and lifting equipment training session provided by Weber Rescue Company and 4 employees attended the industrial fire brigade NFPA 1081 Standard training session.

Four Health and Safety awareness campaigns were conducted successfully for all Bapco employees and contractors, which included:

o My Safety Matters

o Summer Is Here

o Know Your Chemicals

o Keep Your Guard Up

Five Ergonomic Tips were issued to all users, which included:

o Preventing at-Home Learning Injuries

o Good Posture Vs Bad Posture

o Practicing Safe Manual Handling Reduces Risk of Injuries

o Ergonomic Tips for Driving

o Ergonomic Tips for Laptop Users

Over 150 ergonomic assessments, including Manual Handling and Workstation, were conducted cross refinery.

20 Behaviour Observation Obtains Safe Trends (BOOST) training sessions were conducted and attended by more than 400 employees.

21 safety inspections for P&U Substations were conducted in 2022.

Work commenced for 2024 EHS (Environment, Health and Safety) Week, the largest Corporate Social Responsibility (CSR) event of the year and also considered to be Bapco’s flagship event.

HSE completed the HSSE Risk Refresh Workshop at Awali Townhall, facilitated by Risk and Compliance Group.

15,720 BOOST Observations were conducted in 2022.

46 Contractors have been trained as new BOOST Observers and a Contractors’ BOOST steering committee has been formed. The Environmental Performance Index (EPI) of 8.3 was higher than the full year’s target at 7.8.

More than 350 employees attended the Safety School Computer Based Training (CBT).

Bapco Waste Management Strategy was presented and approved by Management.

19 PTW training sessions were conducted and attended by more than 700 employees.

The annual RECSO clean-up day was held in December 2022 at the Ma’ameer shoreline as one of Bapco’s many environmental initiatives.

468 Risk Assessment Method Statement (RAMS) were screened in 2022.

Over 10 cleaning cycles of Bapco Solar Energy System were conducted in 2022.

HEALTH, SAFETY, AND ENVIRONMENT continued

The second round of groundwater monitoring for Refinery and Sitra Tank Farm was completed.

Two Working at Height (WAH) visual seeing workshops were conducted for 20 BOOST Observers by a Working at Height specialist.

Bapco’s Rescue Team conducted more than 60 practical rope and confined space rescue exercises.

Bapco registered all high risk WAH activities and tested Contractor rescue plans before signing RAMS and Rescue Plans.

Bapco organised a specialised training session for more than 140 young Bahraini employees from NSH company in cooperation with the Ministry of Labour. More than 1,450 employees attended the Fire School.

Bapco Fire Rescue constructed a purpose-built WAH and confined space entry (CSE) training tower to test and train Contractors and Bapco Staff.

3 NEBOSH (National Examination Board in Occupational Safety and Health) Fire Safety Courses were conducted and attended by 33 Fire Rescue employees.

33 Bapco Fire Rescue employees completed the Annual Firefighting Fitness Test.

The largest capital investment ever undertaken by Bapco in its 90+ year existence is changing the company into a more modern, complex, competitive, profitable and environmentally friendly facility, ready to meet the needs of the industry and Bahrain’s Vision 2030. By transforming Bapco into one of the region’s most competitive and environmentally responsible refineries, the multibillion-dollar Bapco Modernization Programme (BMP) investment will help the Kingdom’s long-term socioeconomic sustainability.

In July 2022, the BMP Flare Stack was successfully erected and in December 2022, Berth 1 and 3 Loading Arms were successfully commissioned. By the end of 2022, the project had more than 20,000 direct and indirect people working in the greenfield and brownfield sites. More than 15 subcontractors were involved in performing different tasks totalling approximately 1.2 million manhours per week.

Bapco Modernization Programme (BMP)

OUR TRANSFORMATIONAL JOURNEY

Procurement and Contracts

The Procurement and Contracts department successfully released two dashboards to streamline the current procurement processes as part of its digitisation transition. Phase One of the journey is represented by the dashboards. To better manage the inventory and guarantee prompt delivery to users, the first dashboard was developed to show the status of purchase orders, requests for quotes, and procurement requests. For improved contract management, the second dashboard offers a complete view of all active contracts.

OUR TRANSFORMATIONAL JOURNEY Information Technology and Digital Transformation

In 2022, Bapco continued its digital transformation journey with consistent actions taken along the three programme pillars of digital governance, digital leadership and digital execution.

Bapco launched its purpose-built Digital Factory, a digital execution group tasked with delivering digital products using data analytics while also encouraging collaboration and innovation among IT, business subject matter experts, and industry and academic partners. Bapco has delivered more than twenty digital products in the areas of data and analytics, mobility, and workplace collaboration, keeping the focus on value creation.

Creating a data-driven culture is probably the most important pillar of the Company’s digital transformation towards the “Bapco of Tomorrow,” where teams are empowered to use insights for improving decision-making and to make processes more efficient and effective.

Bapco IT & Digital initiated the “Data Champions Programme” with the goal of improving data literacy across the company and equipping employees with knowledge and efficient self-service data analytics tools. The department trained a group of 25 business analysts, who took part in the first phase of the programme, which started in June 2022. The group received structured hands-on training on data analytics techniques and self-service Business Intelligence (BI) and worked on specific projects that involved data cleansing, data processing, and data consumption and visualization using the Enterprise Data Bank prepared by IT & Digital.

The Enterprise Data Bank is at the core of the IT & Digital strategy to introduce a data-driven culture, thus helping the users make faster, more consistent, fact-based business decisions. This modern data platform helps to improve the availability, accessibility, and reliability of the data, as well as provides a marketplace for business users to access and acquire data and information.

Bapco launched its purpose-built Digital Factory, a digital execution group tasked with delivering digital products using data analytics while also encouraging collaboration and innovation among IT, business subject matter experts, and industry and academic partners.

Bapco continued to invest in the modernisation of its core ICT infrastructure and increased its cloud footprint for improved agility and availability. IT & Digital continued to support employees’ mobility needs by providing secure remote work facilities and digital communication and collaboration tools.

IT & Digital enabled business transformation efforts in several areas, from Human Capital Management, where it digitalised the full hire-to-retire employee cycle, to Marketing and Supply, where they implemented a best-in-class commodity trading and risk management platform to strengthen the Company’s trading capabilities.

In today’s interconnected environment, information is exposed to a variety of risks, threats, and vulnerabilities. Bapco continued to invest in information security to safeguard technology, assets, and critical information, as well as to safeguard its reputation and avoid any damage or loss caused by unauthorised access to its systems and data.

To ensure that its cybersecurity standards keep pace with the ever-growing threats, the IT & Digital security programme incorporates cutting-edge initiatives such as the Zero Trust and Unified Cybersecurity models.

In 2022, Bapco completed the first Bapco IT & Digital Graduate Programme with a batch of ten talented Bahraini graduates.

OUR TRANSFORMATIONAL JOURNEY

Omega: Paving the Way For the Future

Through the strategic OMEGA programme, Bapco continues to sustain and enhance the Company’s efforts to become a more commercially driven organisation with competent people supported by the best practices, systems, and processes, while maximising financial gain for the Kingdom of Bahrain.

Following the design and development of a commodity trading and risk management (CTRM) system, Bapco has successfully rolled out the CTRM system modules for the sale of all products and Abu Safah crude in 2022. This follows the successful implementation of Aviation Jet A-1 Fuel and Asphalt Sales in 2021. The system is fully tested and integrated with the Finance ERP system and provides comprehensive analytics and reporting. In 2022, the local marketing systems were updated or enhanced in conjunction with the vision of better integration and increased automation.

During the year, more than 70 procedures and governance policies based on the updated business processes (completed in 2021) were drafted and finalised.

To ensure a robust yet smooth transition into the future, a newly designed organisational structure for the Marketing Division, along with the relevant job descriptions and headcounts for each position title, was designed. This has been submitted to an external consultant as part of the overall corporate organisation structure review, with the expectation that it will be implemented during 2023.

CORPORATE SOCIAL RESPONSIBILITY

Besides contributing more than 70% of the national economy output and being the largest industry employer in Bahrain, Bapco also leads the way in contributing to the social and cultural life of Bahrain.

150 Bapco volunteers

Bapco was one of the first companies to support INJAZ Bahrain when it was launched in 2006 and continues to be a strong supporter, contributing financially and providing employees as volunteers. In 2022, 150 Bapco volunteers were enrolled to deliver various programmes in the academic year of 2022/2023.

The Company supported different organisations and societies, being one of the main sponsors of the Bahrain International Circuit (BIC), which hosts the annual Formula One Gulf Air Bahrain Grand Prix. Bapco also contributed to educational organisations, sports clubs and events, social and cultural clubs, and a host of professional and specialised exhibitions and conferences.

Bapco was one of the first companies to support INJAZ Bahrain when it was launched in 2006 and continues to be a strong supporter, contributing financially and providing employees as volunteers. In 2022, 150 Bapco volunteers were enrolled to deliver various programmes in the academic year of 2022/2023.

Bapco’s philanthropy extended to the Kingdom’s sporting and business communities. The Company continued its sponsorship of His Majesty the King’s Football Cup and the Nasser bin Hamad Football Tournament, renewed its sponsorship agreements with the Bahrain International Circuit (BIC), and sponsored the Bapco Motorsport team in its various motor racing activities. Bapco also provided top-level support to a diverse spectrum of trade and career fairs held in Bahrain throughout the year.

Through numerous channels, the Bapco Modernization Programme (BMP) made a substantial contribution to the local community. The Environment and Social Section received zero concerns, completed two community projects and has been working on another nine projects. The team has had several meetings with key stakeholders to review project progress and handle any concerns, as well as conducting a total of 41 awareness/ stakeholder engagement programmes for residents in the project’s local community.