COMPANY PROFILE
2015
BapCO
www.bapco.net/en-us | T: +973 1 770 4040
Expertly integrated oil and gas Editorial: Tim Hands
Even now, almost 80 years after the company’s development, the Bahrain Petroleum Company is undertaking and exploring new initiatives in oil and gas field development, with new global markets continuing to open up and spark rapid advancement within the company.
The first company to discover oil in the Arabian Peninsula in 1932, Bapco started exporting in 1934 and refining in 1936, and has spent the intervening years helping to shape the current Kingdom of Bahrain, both through the generation of wealth and through the developing of the country’s manpower. It is
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wholly owned by the Government of Bahrain, and is engaged in the many facets of the oil industry comprising refining, distribution of petroleum products and natural gas, and sales and exports of crude oil and refined products. The company boasts a 264,000 barrel-a-day refinery, alongside storage facilities
for more than 14 million barrels, while a marketing terminal and a marine terminal are essential for its refined petroleum products, 95% of which are exports. A significant proportion of Bapco’s exports are made widely throughout the Middle East, India, the Far East, South East Asia and Africa, while
BAPCO its activities within the sector are extensive. Through its exploration work, far-reaching studies are carried out to explore new offshore oil and gas reserves and obtain more accurate data on existing reserves, while Bapco also refines some 260,000 barrels of crude daily. The company has more than 170 storage tanks at different sites, exporting crude to world markets and selling petroleum products both locally and internationally. It also supplies aviation fuel at the Bahrain International Airport through the Bahrain Aviation Fuelling Company (BAFCO), and provides natural gas to power plants and other industries in Bahrain. New technologies have vastly improved performance and safety in modern oil exploration, since its beginnings in 1912 with the discovery of Cushing Field in Oklahoma, USA. While, fundamentally, the process remains the same, with an energy demand which continues to grow exponentially, oil and gas exploration and production today requires a variety of economic, social, political and environmental considerations. Companies are charged with finding and producing increasing quantities of oil and gas, although achieving this requires much more than simply ramping up production from traditional sources. Towards this end, it has become necessary to adopt new exploration and production technologies, evolve environmental laws and regulations that vary among and within nations, and provide adequate profitability. Bapco’s refining division, meanwhile, is responsible for the entire hydrocarbon supply chain which comprises the receipt, storage, processing and refining of crude as well as its storage, blending, and shipment through the Bapco Wharf.
BMP The Bapco Modernisation Project (BMP), in full swing this year, has been developed with several key objectives in mind, perhaps most pivotal of which is a revised configuration which will allow for a higher throughput, improve the product slate and increase the gross margin in order to remain competitive across a range of prices and market scenarios. There is a heavy focus here too on environmental compliance, ensuring that all new units function according to the relevant local environmental regulations, while improving energy efficiency and lowering the Energy Intensity Index (EII) of the refinery. Bapco’s Chairman, Adel Khalil Al Moayyed, describes the rationale behind the modernisation project as such: “The objective of the BMP is to develop an optimum refinery configuration that will place Bapco amongst the most competitive refineries, as well as address environmental and efficiency issues. The initial front-end loading phase for the BMP, corresponding to phase 1 of Bapco’s project development and execution process – detailing the business case, scope, framework and viability – has been completed in line with recommendations of a number of specialised studies and reviews.” September of this year brought a hugely significant chapter in these development plans, with the signing of a major plant upgrade deal, whose work is to be carried out over the next 16 months. This expansion aims to raise Bapco’s refining capacity by
100,000 barrels per day, with the project management, engineering and construction firm Technip Italy set to carry out the front-end engineering and design, at a cost of around $55 million. Dr Peter Bartlett, Bapco Chief Executive, told Gulf Daily News of how the BMP comprises a group of related projects managed in a co-ordinated way to obtain maximum benefits. “It follows a $1.2bn Strategic Investment Programme,” he described, “as a result of which the refinery is now the first in the Middle East with the capability to produce nearly 100,000 bpd of Euro V diesel and Group III lube oil base stock.” Adel Khalil Al Moayyed reinforced just how central the Bapco Modernisation Programme is to the company’s thinking over the coming years. “Over the next six to eight years, our strategic focus for the downstream business will be entirely on the BMP. The BMP is in fact a ‘programme’ which, in project continues on page 68..
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Al A’Ali Delivery of Confidence and Certainty from our collective global Experience Pascal Bateman, Comsip Al A’Ali Middle East Regional Executive Director: “We have been present in the Kingdom of Bahrain since 1971. Comsip as Part of Vinci Energies International Oil & Gas Group and Ahmed Mansoor Al A’ALI group, is now entering into 34 years of collaboration in Bahrain. These relationships are demonstrated by successful mobilization of large workforces, innovative local content participation, continuous improvement and significant safety milestones being achieved.”
Jean Michel Lang, Managing Director of Vinci Energies International Oil & Gas - major stakeholder of Comsip: “With the world wide group synergies, we are able to provide an extensive portfolio of expertise in the Services (Operations and Maintenance, Engineering and Inspection Maintenance, Commissioning and Flawless Startup, O&M Training with International standard), Projects (EPC Turnkey or specialized: Electrical, E&I, Utilities, ICSS, AF, HIPPS etc), Technical Assistance and some niche markets (analyzers, architecture and ergonomics).”
Promoting ‘Actemium’, our new brand, for integrated solutions focus for industrial business, our clients will have the benefits of a global and local approach with a broader offering in Process control and Automation, Electrical and Instrumentation, Mechanical and Piping and Process Utilities. Actemium offers an unequalled global range of expertise, services and references.
Pontius Hutapea, Country Manager and Comsip Al A’Ali Director: We have been active since 1971, starting with the LSFO project and in 2001 getting involved with Bapco’s Modernization of CDU and VDU. Then FCCU, Tank Farm, North process Control Building (Modernization of LSFO and FCCU Complexes) as well as LSDP, RGDP, LBOP and WWTPP. The STG project will begin with SRU Modification. We are proud to be part of Bapco History. PAGE 66
SAFETY IS OUR NUMBER ONE PRIORITY – EVERYBODY SAFE – EVERY DAY” Our commitment is to ensure that the Bapco facility is a safe place to work. Safety drives our approach to projects, the way we work with each other and the way we interact with the communities in which we operate. There is no task so important or so urgent in our business, or our customer’s business, that it overrides the need to work safely. Our Ambition in 2015. We are here to exceed expectations, to provide cost effective services and manage our health, safety, environment, people and community. We offer relationships in a way that other companies will have difficulty in delivering. Modernization will not only cover new technology applied but also the development of human resources. In 2015 we will start to put in place new added value on the top of our traditional expertise.
Such Services:
• Engineering of Inspection and maintenance that will drive optimization of operational expenditure.
• Training and Competence Development will include the competency management system that will drive workforces, making them fit for purpose and placement, ensuring the right people, at the right time, in the right place. Commissioning and start up, will include the solid preparation of operations, test procedures, up to sequence of startup and smooth handover to O&M staff.
•
Analyzer Fabrication
Projects and Products
• Proven capability in engineering to optimize the shutdown time during
revamping works by implementing “hot transfer methodology” under experienced engineers and project management team. Customized Analyzer and Design of Blastproof Control Room and some aspects of ergonomics design. Upgrading Blast proof building Central Control Room.
• • “Pressurized Electrical Control Room”
Comsip Al A’Ali, a company of
wishes BAPCO a successful 2015
...continued from page 65. management terms, is a group of related projects managed in a coordinated way to obtain maximum benefits. It is envisaged that the BMP will be split into several individual work packages or ‘projects’ for better manageability, coordination and ease of integration with the existing refinery. The BMP is set to be the single-largest capital investment in the history of BAPCO as well as
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that of the Kingdom of Bahrain.” It is precisely the foundations for growth which the company is steadily putting in place which will allow for the success of Bapco’s most ambitious project to date, at an estimated cost in excess of $5 billion.
STRONG PARTNERSHIPS Chevron Lummus Global, a joint venture between CB&I and Chevron, announced in October its winning
of a significant Bapco refinery contract in Bahrain, worth over $100 million. The scope of work includes the licence of its LC-Fining and Isocracking technologies, as well as engineering design packages, for the new residue hydrocracking and vacuum gasoil hydrocracking units for the BMP. “Chevron Lummus Global has provided hydroprocessing technologies and catalysts for the
BAPCO production of clean transportation fuels and high quality lubricant base oils at this refinery for past projects,” said Daniel McCarthy, President of CB&I’s Technology operating group.
“The objective of the BMP is to develop an optimum refinery configuration that will place Bapco amongst the most competitive refineries, as well as address environmental and efficiency issues” “The Bapco Modernisation Programme will expand the Bapco refinery capacity and introduce further depth of conversion and upgrading of heavy oil. The selection by Bapco to be its key technology provider underlines CB&I and Chevron Lummus Global’s lead position in heavy oil upgrading,” he added. Bapco’s commitment to environmental concerns forms an integral part of both the company’s business and culture, among such innovation and development. As part of these ongoing efforts, whereby
it aims to support and implement national initiatives in Bahrain, in collaboration with the National Oil & Gas Authority (NOGA), the company has adopted its Solar Energy Pilot Project initiative to further the usage of clean energy generation, through the application of solar energy technologies. As well as reducing national reliance on the natural gas, the project contributes to the establishment of renewed energy industries as part of the national economy in the near future, in addition to creating significant job opportunities and the providing a new industry for the domestic market. This pilot project aims to generate five megawatt solar energy units at Awali, the Refinery and University of Bahrain (UoB), at a total cost of US$ 25 million. The project has been implemented as a part of continued efforts by the National Oil & Gas Authority (NOGA) to deal with critical environment issues, through reconsideration of resource management and improved renewed energy technologies. Success has already been seen in developing and generating power through solar energy and smart grid applications which enhance the reliability of power distribution network, while the project also contributes to enhancing the efforts of sustainability and environmental preservation, and aims to ensure the transfer of knowledge, research and advanced technologies.
ENVIRONMENTAL PROGRESS Bapco has engaged itself in various additional projects dedicated to the protection of the environment. Some of its success stories include the 100-day Energy Blitz, which has generated significant energy savings over its titular period, as well as the multi-million dollar Refinery Gas Desulphurisation Project (RGDP). This
stands as one of the most intricate and vital environmental compliance projects ever undertaken by Bapco, one which has successfully reduced its sulphur dioxide emissions. Embodying its emphasis on environmental preoccupations, Bapco’s Green School Award, in association with the Ministry of Education encourages secondary school students to participate in environmental conservation at this formative and vital age. Among Bapco’s more successful initiatives is the Princess Sabeeka Park in Awali, inaugurated in February 2010 by Her Royal Highness Princess Sabeeka bint Ibrahim Al Khalifa which serves as a notable addition to Bapco’s cannon of environmental initiatives and houses a number of rare plant species. The company’s Environment, Health & Safety Week, the culmination of which is a highly successful Family Day, historically attended by some 26,000 visitors, is dedicated to encouraging environmental protection in Bahrain. Adel Khalil Al Moayyed described how the project reflects the continued commitment of the Kingdom in the face of challenges around energy security, climate change and economic development, through partnerships and global cooperation towards finding long term economic solutions. “Bapco has confirmed once again its serious commitment as a key national establishment in supporting such significant initiatives for the future of the Kingdom through the implementation of this leading national project.” Evidently this is an area of serious preoccupation for Bapco, with its substantial investments to protect and nurture the environment playing in perfect harmony with its culture of development and innovation
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