TechnipFMC-led consortium to expand Bahrain refinery (updated)

Samsung E&A Co

01/12/2017 13:17

(Adds background, statement by Samsung Engineering) 
    KHOBAR, Saudi Arabia/SEOUL Dec 1 (Reuters) - State-run 
Bahrain Petroleum Co (Bapco) has awarded a consortium led by 
UK-based TechnipFMC a contract to expand Bahrain's only oil 
refinery, sources close to the matter told Reuters on Friday. 
    A spokesman for South Korea's Samsung Engineering, also a 
member of the consortium, confirmed the news. 
    Samsung Engineering said in a statement the consortium 
received a letter of award from Bapco on Nov. 30 to execute the 
project in a contract worth a total amount of $4.2 billion.  
    Bahrain has long been planning to expand the refinery; which 
officials estimated would cost $5 billion. 
    Industry sources told Reuters in August that Bapco held 
further talks with the consortium which submitted the lowest 
bid. 
    The consortium also includes Spain's Tecnicas Reunidas. 
    Bapco and TechnipFMC did not respond to a request for 
immediate comment. 
    Tecnicas Reunidas declined to comment.  
    Bahrain's oil minister Sheikh Mohammed bin Khalifa al 
Khalifa has said the contract would be signed before the end of 
the year.  urn:newsml:reuters.com:*:nD5N1L1000     
    The refinery has a processing capacity of 267,000 barrels 
per day (bpd), but the Bapco modernisation programme aims to 
lift that to 360,000 bpd by adding and replacing some units. 
    Bahrain relies on output from the Abu Safa field that it 
shares with Saudi Arabia for the vast majority of its oil.  
    A new pipeline will replace an ageing 230,000 bpd link, 
allowing the refinery to process more crude for its expansion. 
    Wholly owned by the government of Bahrain, Bapco's 
operations are in the refining, distribution, sale and export of 
crude oil and refined products. 
     
 
 (Reporting by Reem Shamseddine and Yuna Park; additional 
reporting by Paul Day and Luke Baker, editing by David Evans) 
 ((Reem.Shamseddine@thomsonreuters.com; +966503335202; Reuters 
Messaging: reem.shamseddine.thomsonreuters.com@reuters.net)) 
 
Keywords: BAPCO REFINERY/