The financial package for the one billion dollar Strategic Investment Programme (SIP) of Bahrain Petroleum Company (Bapco) was signed in February 2005 and this massive expansion programme is quicky gathering pace.

Backed by its formidable safety record and confident global strategy, Bapco is set to raise the profile of its export refinery over the next few years through increased competitiveness, higher operational efficiencies and the most stringent environmental standards for its refined products.
Its ambitious strategic objectives include major refinery modernisation to increase its market competitiveness as well as quality upgrades to its diesel and gasoline all within the context of stringent environmental standards.
Since 1998 when the Refinery Modernisation Programme was first ratified by the Supreme Oil Council a number of projects have been completed by Bapco with other investments under implementation and more to begin soon.
The contract for the Low Suphur Diesel Production Project (LSDPP) was signed between Bapco and JGC Corporation of Japan in January  2005. The total implementation of this immense project will bring job opportunities to Bahrainis and international companies from the estimated capital expenditure of $685 million with initial Engineering, Procurement and Construction Management (EPCM) work having started in April 2004.
With the financial package now in place Bapco is pushing through its strategy for plant diversification, development of commercial products and engineering the most stringent plant specifications in terms of quality and the protection of the environment. 
According to Hussain Tadayon, Bapco's Chief Executive Officer, more than $150 million has been spent already in terms of the project's EPCM through a previous loan facility.
"The actual start of the largest construction package for the LSDPP project begins immediately on a new site area with construction proper starting early March with completion scheduled for the first quarter of 2007.
The Refinery gas desulphurisation project (RGDP) is the largest environmental project within the SIP ensuring a balance between energy utilisation and environmental protection.
"We are spending about $200 million on emission controls and environmental protection systems that will meet or exceed the most stringent standards to a maximum of 150 ppm (parts per million) sulphur involving cleaning up stack emissions and  effluent treatment of solids, air and water to ensure environmental compliance," says Tadayon.
EPC contract invitations for the RGDP are already extended to international companies to initially bid by this April with awards due in the early part of the third quarter of 2005. 
Seven years ago, Bapco conducted a benchmarking study to examine the driving forces and key performance indicators as part of the company's strategic review. 
A key aspect of the strategy was improving the refinery's efficiency in the key processes with Tadayon continuing to spearhead this strategy across all the facets of the refinery.
Paying credit to the Supreme Oil Council, and its strategy since 1998, Bapco is rapidly building up momentum according to Tadayon. Implicit to Bapco is continuous improvement and enhancement of the refinery meeting industry standards and pacesetting criteria for overall plant performance, reduced operating costs, implementing best operating practices benchmarked against global refineries.
"Bapco is an export refinery with 95 per cent of our production destined for overseas markets including Asia, Europe and Africa.  There is increasing demand for low sulphur diesel not only to meet increasing environmental regulations and minimise atmospheric pollutants but also to improve engine efficiencies. It was a strategic decision to push for the LSDPP in the context of what will become a highly complex, modern refinery including the new hydrocracker and hydrogen plant, sulphur recovery unit as well as state of the art control rooms.
"To the outside world, the significance of the Refinery modernisation and upgrade cannot be understated as this strategy underpins the ongoing viability of Bapco as a provider of energy and competitive commercial products and is also creating great confidence in the Bahrain petroleum industry as a key driver of the national economy as well as an economic stimulant through procurement, construction and new job opportunities.
Bapco is also bringing in new technologies and this transformation is almost a paradigm shift in the nature of the refinery. A great deal is happening and will happen and one can feel it. There will be increasing demand for technical knowledge in IT, various engineering disciplines and those that want to be involved in the smart technology of the future," says Tadayon. 
Since his appointment as CEO in May 2003, the first Bahraini to be appointed to this position, Tadayon can look back on 48 years service to the company.
"The investment projects over the next four years in both the upstream oil and gas sector and the downstream will fuel the economic growth of Bahrain and upgrade the refinery products. In addition we will be able to market our biggest single product - diesel - internationally, with ultra low sulphur specifications," he says.
Tadayon joined Bapco as an apprentice in 1957, and well remembers the early days following graduation from London University as an electrical engineer.  In 1975 he was appointed manager of Power and Utilities, the first Bahraini manager of a technical department, and later became the first Bahraini general manager in 1981.
Chairman of Bapco Industrial Safety Committee, Tadayon is also a Fellow of the UK Institute of Electrical Engineers, Fellow of the Bahrain Society of Engineers, external member of Bahrain University's Scientific Research Council, Past President Manama Rotary Club, member of the Bahrain National Action Charter Committee.