Bapco’s $1 billion Strategic Investment Programme of modernisation, upgrades and expansion is forging ahead.

This massive development programme will transform the refinery and facilitate Bapco’s drive for commercial diversification of its products.
Reinforced by stringent specifications for its processes, production, environmental protection and industrial safety, the Low Sulphur Diesel Production Project is the primary component of the investment.
Dr Mustafa Al Sayed, President of Bapco since October 2004 following a decree by the Prime Minister and Supreme Oil Council Chairman HH Sheikh Khalifa bin Salman Al Khalifa, brings his own dynamic management style to Bapco as the company enters this key phase of modernisation and development.
Al Sayed who has wide experience in the industrial field having held numerous senior positions during his long career will lead the company as it continues its modernisation, increases exploration and drilling, and further strengthens its international competitiveness. 
Al Sayed started his working life as an apprentice at Bapco at the age of 13 and progressed quickly through the ranks powered by his legendary drive and determination during his first Bapco career from 1960 to 1974. During this period, Al Sayed assumed many senior positions and became at the age of 23 shift-change engineer on the Sitra power station working on the high voltage cables.
Intensive on-the-job practical training led to his simultaneous attainment of top level academic and professional qualifications including his first degree in Mechanical Engineering from the UK. Al Sayed later took his masters in Project Management from Trinity College Dublin, Ireland followed later by his Doctorate in Management from the University of London.
“I have always enjoyed reading and absorbing knowledge.  Mastering the English language as part of achieving GCE ‘O’ Levels was my first academic challenge.  My overseas education included working in Ireland for the power generating and supply sector. I then became Chief Engineer in the then Ministry of Works, Power and Water.  Discipline and an intensive work ethic has always been there and respect for safety is in my blood, “ adds Al Sayed. 
In 1974 Al Sayed assumed the CEO position for Midal Cables a post he held until taking over as General Manager for GPIC in 1979.  Al Sayed was at GPIC for 16 years.  During that  period the company was revitalised and turned into profit whilst increasing production capacity and installing a new urea plant.   He managed to build a team of highly motivated and dedicated work force that lead the successful transformation.
It is highly appropriate that the interview with Al Sayed in his new capacity as President of Bapco was conducted at Bahrain’s oil museum close to Jebel Dukhan - now a major tourist attraction that celebrates Bahrain’s transformation into an oil state in the 1930s.  Close by is Discovery Well No 1 where the first well was drilled in 1931 and oil discovered in commercial quantities in 1932. 
A few years later the Bapco refinery was built and Bahrain became the region’s first oil state. Al Sayed is pleased to rejoin Bapco 44 years after he first joined as an apprentice engineer and sees exciting times and new challenges ahead.
“Over the years, Bapco has played a vital role in the Bahrain economy, during which important developments both within the oil industry and in the local economy have taken place.  When the government took over the whole of Bapco in 1997, this brought the entire oil and gas sector under government ownership as two separate entities, Bapco and Banoco. It was the vision of HH Sheikh Khalifa bin Salman Al Khalifa to merge the two companies into one, to create synergy that would lead to one strong, solid company.
“The impact of this new synergy is being felt all over Bahrain and the one-billion dollar modernisation programme will add value to our assets and give Bapco a competitive edge in international markets. We will rejuvenate the Bahrain Field, and continue exploring for oil and gas in new areas on land and offshore Bahrain, and through cooperation agreements secure alternative supplies from Qatar. Importantly, we also take into consideration the important safety and environmental aspects of our industry,” says Al Sayed.
“The Bapco Refinery has come through a challenging period and is strategically vital to Bahrain. The refinery is profitable and we are adding value by marketing our 260,000 barrels per day of refinery products and the 150,000 barrels per day of Abu Safa oil, while we manage to keep the uplift costs in Bahrain Field as low as possible.”
During 2004, Bapco set a new safety record with the achievement of 12 million man-hours without a lost-time accident (LTA). This important milestone, reached in July, coincided with a series of recognitions Bapco received for accomplishments in the area of safety.
During the year, the company completed the first two successful periodic audits of its OHSAS 18001 system. OHSAS 18001 is a comprehensive Occupational Health and Safety (OH&S) management system designed to enable organisations to control OH&S risks and improve their performance. Bapco received OHSAS 18001 accreditation in November last year from DNV - Middle East, the international accreditation organisation.
Bapco also obtained a “Highly Commended in the Oil and Gas Industry Award” from the Royal Society for the Prevention of Accidents (RoSPA) - a leading safety organization based in the UK - for its Safety Management System. Bapco was also recognised by the American Society for Safety Engineers for the company’s outstanding safety record acknowledging the excellent work placed on industrial safety.
The safety of Bapco’s operations extends to the company’s wharf, with Bapco being granted full certification as an approved port facility under the new requirements of the International Ship and Port Facility Security (ISPS) Code in June 2004.
Bapco’s strong safety culture played an important role in the safe completion of the refinery’s Fluid Catalytic Cracking Unit (FCCU) shutdown in early October.
The shutdown took only 36 days and a half to complete, setting a new benchmark in shutdowns. Data from international surveys show that the average length of a turnaround and inspection for an FCCU is 44 days, and for a plant the size of Bapco would be 49 days.
For Al Sayed, environmental protection is of equal importance. The $120 million Refinery Gas Desulphurization Project (RGDP), a key environmental compliance project is an integral part of Bapco’s Strategic Investment Programme and is due for commissioning early 2007.
Other projects already completed as part of Bapco’s environmental compliance plan includes the Unleaded Gasoline Project completed in 2000 and the Kerosene Merox Project completed in 2001. Other projects in the plan include the Biological Treatment Project due for completion in 2008, the Refinery Sewage Treatment Project which will tie into the Government’s planned system, the ongoing Tank Seal Replacement Project, and the Solid Waste Management due for completion later this year.
The largest undertaking in Bapco’s history, the Low-Sulphur Diesel Production Project (LSDPP) now enters the construction phase after completing design and procurement. Bapco teams have been working closely with JGC Corporation, the Japanese company which was assigned the EPCM contract.
This $685 million project will enable Bapco to produce low-sulphur diesel and other high-value products to meet the world demand for cleaner fuels, and is the largest project within the Strategic Investment Programme.
Other key projects completed during the year include upgrades of the Gas Dehydration Units (GDUs) and the replacement of heat exchanger tube bundles as part of a two-phase retubing programme to enhance the reliability of GDUs and ensure uninterrupted gas supply. Two separate agreements were signed with KCC Process Equipment (International) Ltd. for the supply of eight new GDUs, at the cost of $17.3 million, and the modification of the five existing GDUs, at a cost of $3.2 million.
“At one time, Bahrain relied solely on Bapco to train technicians and to organise, support and promote community activities. Bapco’s financial support played an important role in the founding and survival of numerous clubs and societies. These and many more such activities have made a lasting and strong relationship between the company and the community,” says Al Sayed.
Al Sayed is confident in Bapco as it enters this phase of development strengthening its role as one of the main national jobs and skills providers and a key factor in the economical development of Bahrain and supporter of community projects.
“My vision of Bapco within the next decade is that of a modern efficient export refinery that will produce environmently-friendly low-sulphur diesel with a committed workforce working as one team.  Bapco will continue to maintain Bahrain Field’s oil and gas reserves, and the field’s natural gas will continue to support Bahrain’s industrialisation projects, with the gas grid covering all of Bahrain’s industrial areas. Our petrol stations will be state-of-the-art in both design and services, offering to motorists a one-stop, 24-hour maintenance and shopping service.
“I am excited by the road ahead and the opportunity to move Bapco forward into a new level of success. The time has come for industrial development and the oil industry will be central to Bahrain’s strategic developments both upstream and downstream with associated plants,” adds Al Sayed.