Bahrain talking to U.S. oil companies about tight oil deal: minister

By Lisa Barrington and Davide Barbuscia MANAMA (Reuters) - Bahrain is talking to U.S. oil companies with shale oil expertise about developing a huge oil and gas field discovered last year, and hopes to have an interested company by the end of the year, the oil minister said on Tuesday

Reuters February 27, 2019 00:06:22 IST
Bahrain talking to U.S. oil companies about tight oil deal: minister

Bahrain talking to US oil companies about tight oil deal minister

By Lisa Barrington and Davide Barbuscia

MANAMA (Reuters) - Bahrain is talking to U.S. oil companies with shale oil expertise about developing a huge oil and gas field discovered last year, and hopes to have an interested company by the end of the year, the oil minister said on Tuesday.

Last April Bahrain said it had discovered its largest oil and gas find since 1932 off its west coast, estimated to contain at least 80 billion barrels of tight oil.

The first test well is being drilled now, Oil Minister Sheikh Mohammed bin Khalifa Al Khalifa told Reuters in an interview. "We should have it flowing ... maybe by the end of April."

Tight oil is a form of light crude oil held in shale deep below the earth's surface that is extracted with hydraulic fracturing, or fracking, using deep horizontal wells.

Al Khalifa said the recovery rate for shale deposits is around 5-15 percent of available reserves.

He said Bahrain is targeting major U.S. oil companies and independent companies which have "operating capabilities in U.S. shale, because tight oil is very much a U.S. phenomenon now".

No deal for the tight oil areas has been signed yet, he said.

The small non-OPEC Gulf oil producer, with around 124.6 million barrels of proven reserves, gets its oil revenue from two fields: the onshore Bahrain field, and the offshore Abu Safah field, which is shared jointly with Saudi Arabia.

The Bahrain field produced around 50,000 bpd in 2015, according to the U.S. Energy Information Administration.

Bahrain and Saudi Arabia split annual revenues from the 300,000 bpd Abu Safah field, where production is overseen by Saudi Aramco.

Bahrain does not have the vast oil wealth of other Gulf Arab states and its revenue has declined since the 2014 slump in oil prices.

Gulf allies Saudi Arabia, Kuwait and the United Arab Emirates agreed a $10 billion aid package in October and Bahrain has embarked on a fiscal reform programme to try to eliminate its budget deficit by 2022.

Al Khalifa also said state-run Bahrain Petroleum Company (Bapco) is "a few weeks away" from financial close on funding for the capacity expansion of its existing Sitra oil refinery.

Five export credit agencies from Korea, Spain, Italy and Britain, alongside international and Bahraini banks will provide more than $4 billion in financing, he said.

The expansion will increase Bapco's refining capacity to around 400,000 barrels per day, from around 270,000.

Around 88 percent of the crude that Babco refines comes from neighbouring Saudi Arabia, and the rest from Bahrain's field.

(Editing by David Evans)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Oil rises 2% as OPEC complies with production cuts
Business

Oil rises 2% as OPEC complies with production cuts

By Jessica Resnick-Ault NEW YORK (Reuters) - Oil prices strengthened on Wednesday, as OPEC and its allies were seen complying with a pact to cut oil supply in September, even as concerns loomed that recovery in fuel demand will be stalled by soaring global coronavirus cases. Early in the day crude was boosted by a bullish stock market. Even as equities whipsawed on pandemic worries, oil stayed higher, buoyed by expectations that OPEC could staunch a supply glut

Tesla's back-to-back price cuts bring sticker on U.S. Model S below $70,000
Business

Tesla's back-to-back price cuts bring sticker on U.S. Model S below $70,000

By Tina Bellon and C Nivedita (Reuters) - Tesla Inc will further cut the price of its Model S "Long Range" sedan in the United States to $69,420, the electric carmaker's chief executive, Elon Musk, announced in a tweet https://bit.ly/2H0JCP0 on Wednesday. The anticipated drop marks the second time this week Tesla has cut the price for the high-end sedan, following a 4% cut of the Model S's price in the United States on Tuesday to $71,990.

Trump cites teenaged son's bout with coronavirus in calling for schools to reopen
World

Trump cites teenaged son's bout with coronavirus in calling for schools to reopen

By Jeff Mason DES MOINES, Iowa (Reuters) - Under siege over his handling of the novel coronavirus pandemic, President Donald Trump on Wednesday cited what he said was his son's mild bout of the virus as a reason why American schools should reopen as soon as possible. Trump made the comment about his son, Barron, as the president swept into Iowa on a mission to shore up support in battleground states that he won in 2016 but is in danger of losing to Democrat Joe Biden barely three weeks before the election. First lady Melania Trump announced in a statement earlier in the day that the virus that struck both her and her husband had also infected their 14-year-old son