Bahrain Plans $5 Billion Onshore Project

By Andy Sambidge, Arabian Business News

Plans have been revealed for a massive expansion of Bahrain's onshore oilfield, which could double its oil output.

Three companies - ExxonMobil, Occidental and Maersk - have been shortlisted for the project, which is expected to cost up to $5 billion.

However, the contract winner will develop and renovate the oilfield for free - with a deal to be hammered out later depending on the success of the project, oil and gas affairs minister Dr Abdulhussain Mirza announced in comments published in Gulf Daily News on Wednesday.

Speaking on the sidelines of the Second Oil and Gas ICT Summit, he said it could lead to a 100 per cent increase in Bahrain's oil output, which now stands at 33,000 barrels per day (bpd).

"The winning company will foot the entire cost according to the terms of the agreement," said Mirza.

He also said drilling at two of Bahrain's offshore oilfields, which began in February, was due to finish by the end of next February.

"This work, on wells three and four, is also being conducted by international companies at zero cost to Bahrain," he told the paper. "Only if oil is struck will we be involved and will work out a sharing agreement."

Preparations to begin drilling are also underway at a third offshore oilfield, while work at the fourth is due to start soon.

 - Copyright 2008, Arabian Business News. All rights reserved.

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