Bapco Energies secures $500m US EXIM financing to expand Bahrain’s historic oil field

Bapco Energies, the leading integrated energy company in the Kingdom of Bahrain, has secured a $500 million financial deal with the United States Export-Import Bank (US EXIM). The funds will be channelled into the Bahrain Field Expansion and Development Program, a crucial project situated in the southern region of Bahrain. This initiative aims to enhance the nation’s energy security and reinforce its position as a key player in the Gulf’s energy sector.

The Bahrain field, discovered in 1932, is historically significant as the first oil field in the Gulf region, marking Bahrain’s emergence as an oil producer. Bapco Energies, which has evolved from a traditional oil and gas entity to an innovative energy leader, has undertaken this project to increase oil and gas production and recovery rates from the field. The field is a cornerstone of Bahrain’s energy infrastructure, contributing significantly to the country’s economy.

This expansion is part of a broader strategy by Bapco Energies to secure Bahrain’s energy future. Under the leadership of His Highness Shaikh Nasser bin Hamad Al Khalifa, the company is transitioning toward a diversified energy mix, incorporating renewables while ensuring the continued development of traditional energy resources. The Bahrain Field Expansion is one of the largest initiatives undertaken by the company, focusing on the extraction and processing of onshore oil and gas.

Mark Thomas, Group Chief Executive Officer of Bapco Energies, highlighted the importance of this partnership with US EXIM, noting that it underscores the company’s ability to attract significant international investment. The deal was facilitated by J.P. Morgan Chase & Co., serving as the mandated lead arranger and disbursement agent, and was funded through the Private Export Funding Corporation (PEFCO).

A rigorous feasibility study, aligned with US EXIM’s environmental and social procedures, confirmed the viability of the Bahrain Field Expansion project. This study not only assured compliance with international standards but also emphasized the project’s potential to deliver substantial environmental and social benefits to Bahrain.

As Bapco Energies continues to lead the energy transition in Bahrain, this financing will play a pivotal role in ensuring the nation’s energy demands are met, while also paving the way for future investments in renewable energy and innovative technologies.

Bapco Energies’ Strategic Vision

The expansion of the Bahrain field is a clear indication of Bapco Energies’ commitment to sustaining Bahrain’s position in the global energy market. Experts believe that this project will not only enhance oil and gas production but will also serve as a catalyst for Bahrain’s broader energy transition strategy. The infusion of $500 million from US EXIM is expected to bolster investor confidence and could potentially attract further international collaborations aimed at enhancing Bahrain’s energy infrastructure.