Bahrain's GPIC, Italy's Saipem to explore expansion projects
GPIC intends to study the viability of implementing new projects within its industrial complex at Sitra through the deal
Bahrain-headquartered petrochemical producing company The Gulf Petrochemical Industries Company (GPIC) has inked a deal with with Italian oilfield services company Saipem to study the feasibility of various projects in Bahrain.
The deal is in line with GPIC’s strategy to expand operations by reviewing the viability of implementing new projects within its industrial complex at Sitra and leverage the discovery of Bahrain’s largest oil field, which was announced in 2018.
The president of GPIC, Dr Abdulrahman Jawahery, said that the agreement includes studies for three projects, according to the state-run Bahrain News Agency.
The first one relates to the technical and commercial feasibility of increasing GPIC’s plants daily production of ammonia, urea, and methanol by approximately 15%, through technical solutions that reduce energy consumption and use natural gas. The estimated cost of this project would be $386.5m (€350m).
The second project includes a pre-feasibility study to build a mega ammonia/urea plant with a daily production capacity of 2,200MT and 3,400MT of ammonia and urea respectively, which is expected to cost between $1.65bn and $2.2bn (€1.5bn-€2bn),
The third project will look to determine the quality of gas feedstock in the fields discovered in 2018. If proven feasible and implemented, these gas projects are estimated to cost $1.65bn (€1.5bn).
The Gulf Petrochemical Industry Company (GPIC) has close ties with many Italian companies, having made deals worth more than $15m over the last two years.
The agreement was inked on the sidelines of the official visit of the Crown Prince, Deputy Supreme Commander and First Deputy Prime Minister, HRH Prince Salman bin Hamad Al Khalifa, to the Italian Republic.
The Minister of Oil, HE Shaikh Mohammed bin Khalifa Al Khalifa, extended the support of the National Oil and Gas Authority (NOGA) to all its subsidiary companies, noting their contribution to the development and sustainability of the Bahraini economy and attraction of foreign investments into the kingdom.
The Minister of Oil also added that the agreement inked with Saipem will enhance GPIC’s ability to increase production, expanding its contribution to the kingdom’s economy.