The Bahrain Petroleum Company announced on Sunday reaching financial closure on its multi-billion-dollar Bapco Modernization Program (BMP) with 21 banks and credit agencies.
Estimated to cost around $4.1 billion, the BMP is set to expand what is considered one of the oldest refineries in the Arabian Gulf region.
Implementing a project of the strategic scale of BMP, scheduled to be completed in 2022, is guaranteed to effectively contribute to sustainable development efforts in Bahrain.
Under the program, the oil refinery connecting Bahrain and Saudi Arabia has been upgraded to boost pipeline delivery capacity from 260,000 bpd to 350,000 bpd.
BMP represents a major turning point for Bapco, which will not only boost its refining capacity, but also enhance its products in terms of quantity, quality and energy efficiency.
Bapco is one of the major oil companies in the region in terms of competitiveness and compliance with environmental standards.
Bapco has contracted with five credit agencies and 21 banks, which included several local and international, commercial and Islamic banks, to finance the mega project. Financing was formally secured on December 20 last year with BNP Paribas, HSBC Middle East and Verus Partners acting as financial advisers to help Bapco meet the conditions required successfully to close the financing process.
The foundation stone for the project was laid in March this year during a ceremony held under the patronage of Bahraini Prime Minister Prince Khalifa bin Salman Al Khalifa and in the presence of Bahrain’s Crown Prince Salman bin Hamad Al Khalifa, Deputy Supreme Commander and First Deputy Premier.
Bapco board director and chairman of BMP Steering Committee Dawood Nassif expressed delight at reaching the financial close of the vital Bahrain project.
Oil Minister Shaikh Mohammed bin Khalifa Al Khalifa lauded efforts exerted by the Bapco team to achieve the financial close.
Given the size and scale of the BMP, the program is perceived as a mutually beneficial conclusion for a wide variety of partners from across the globe because it means we can provide a wider product offering and meet higher demand from customers.
