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Saudi & Bahrain sign $300m deal for oil pipeline

The new link between Saudi Arabia and Bahrain is set to be operational by 2018

Saudi Arabia and Bahrain have signed contracts worth $300m to lay new 350,000 barrel per day oil pipeline.
Saudi Arabia and Bahrain have signed contracts worth $300m to lay new 350,000 barrel per day oil pipeline.

Saudi Arabia and Bahrain have signed contracts worth $300m to lay a new 350,000-barrel per day (bpd) oil pipeline between the two countries, Bahrain's Energy Miniter reveaeld.

The new link is set to be operational by 2018, with the old pipeline likely to be removed from service in the second half of 2018.

Agreements to build the pipeline were signed by Saudia Arabia's Al Robaya Holding Company and the National Petroleum Construction Company of the United Arab Emirates. 

The new pipeline will replace an ageing 230,0000 bpd link and enable Bahrain Petroleum Company (Bapco) to expand the processing capacity of its 257,000 bpd Sitra refinery. 

Arabian Light crude oil will flow from Saudi Aramco's Abqaiq plant via the 115-kilometre pipeline, 73 kms of which will run overland and the rest under the Gulf.

The new pipelines capacity could be increased to 400,000 bpd, Abdul-Hussain bin Ali Mirza said.

"It will be finished by the end of 2017 or early 2018 and then there will be a six-month trial period for the new pipeline", Mirza said. 

The cost of the pipeline will be met by nogaholding, an investment vehicle which holds the Bahraini government's oil and gas assets. 

Arabian Light crude oil will flow from Saudi Aramco's Abqaiq plant via the 115-kilometre pipeline, 73 kms of which will run overland and the rest under the Gulf.

 

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Construction Week - Issue 754
Nov 23, 2019