OGN: Could you detail Bahrain plans to restructure its oil and gas industry to increase its contribution to the national economy?
The wise Political Leadership in Bahrain has always been proactive in initiating political, social and economic reforms.

As part of the economic reforms, the Kingdom of Bahrain has recently embarked on a new initiative to restructure its oil and gas industry.
This restructuring has started with placing overseeing all activities related to oil and gas under one umbrella by establishing a new National Oil and Gas Authority (NOGA).
NOGA which was established by Royal Decree (63) at the end of September 2005, has been entrusted by the Political Leadership to regulate, oversee and develop oil and gas resources and develop related industries including overseeing all the oil and gas companies in Bahrain with the aim of preserving and improving the current somewhat limited oil resources and ensuring sustainable future supplies to fuel the economic growth of the Kingdom.
I was honoured by the Political Leadership to be named as Minister of State and Chairman of NOGA.
As part of the restructuring, NOGA replaces the previous three oil authorities, which were the Supreme Oil Council, the National Gas Committee and the Ministry of Oil.
The replacement of the Ministry of Oil by NOGA as an authority aims at giving NOGA more freedom, flexibility and independence in managing oil and gas sectors in Bahrain.
We believe that as an independent authority it can apply the private sector mentality and best practices in managing this vital sector in Bahrain.
This will require a paradigm shift in the way this sector will be managed and involves a great deal of creative thinking and coming up with new and innovative ways and means to not only make maximum use of our current resources but also to find alternatives to enhance and increase its contribution to the national economy.
As a result, the oil and gas industry should witness some tangible changes in the structure as well as in the policies and strategies relating to both upstream and downstream operations in the near future.

OGN: A top new team is currently masterminding plans that include searching for untapped resources and more cost-effective production practices. Could you please elaborate?
The initial Royal Decree (63) which was issued in September 2005, stated that NOGA will have a Board of Directors made up of a Chairman and six other members. I was named as the Chairman at the time and six other members.
In December 2005 Royal Decree (78) was issued naming the other six Board members. These six members were carefully chosen by the Political Leadership to ensure that they are all competent technocrats who are professional in the field of oil and gas.
Although they are mainly the top executive officers of the major oil and gas companies and some are from energy consuming companies or financial institutions, they were chosen to the Board due to their knowledge, personal competencies and achievements.
This professional team represents some of the best management talents in the industry and will help NOGA in masterminding plans that will enable it to achieve its ambitious objectives.

OGN: Can you highlight and describe the Authority's strategic plans and objectives?
Although it is too early to elaborate on our plans, we have been meeting once a week since the formation of the Board to chart out our road map and priorities which will lead us on our journey from where we are now to where we want to be in the future. So one of the first functions of the Board was to define its Vision, Mission and Values. This we have done. I am pleased to spell these out here:
Our Vision is 'to be the Oil and Gas recognised leader fueling economic growth and improving living standards.'
Our Mission is to regulate, oversee and develop Oil and Gas related industries in the Kingdom of Bahrain with the aim of:
• Providing general policies and strategic direction.
• Securing sustained supply of Oil and Gas to meet existing and future requirements.
• Maximising return and contribution for the growth of National Economy.
•  Effectively optimising utilisation of resources.
• Promoting private investment.
• Encouraging research and development.
• Sustaining 'World Class' safety, health and environmental standards.
• Ensuring compliance with Corporate Governance.
• Developing leadership and human resources.
• Promoting and supporting 'Best Practices.'
And our Values which we will uphold in conducting our business are:
• Transparency
• Integrity
• Fairness
• Creativity
• Professionalism
• Teamwork
• Respect
These values, mission and vision were developed by the NOGA board through a participative process to ensure that they are owned by all the members.
Next, we will be developing our strategic plans and priorities. Our initial priorities are to pursue new exploration efforts for oil and gas offshore and secure imported gas from our neighbours and encourage investment in the oil sector by the international oil companies and the private sector.

OGN: Great changes are taking place in the development of Bahrain's oil, gas and petrochemical sectors with significant initiatives gathering pace both upstream and downstream. Can you provide an overview of Bahrain's ambitions in the global context?
There were several projects which have been implemented in exploration as well as in drilling and refining sectors, with Bapco's refinery acquiring the lion share of investment opportunities.
Over $1 billion have been allocated for the modernisation programme which commenced in 1989 and expected to be finished by 2007. It embraces such important projects like:
1. In-line Blending.
2. Unleaded Gasoline.
3. Wet Gas Compression.
4. Kerosene Merox.
5. Refinery Effluent Biotreatment Project.
6. C3/C4 Recovery Project.
7. Refinery Gas Desulphurisation Project.
8. Low Sulphur Diesel Production Project.
There are also plans and proposals to implement other projects like:
1. Lube Oil Manufacturing Plant Project.
2.  New Route for the A - B Pipeline.
3.  Sulphur Palletising Plant.
Other investment opportunities are lying ahead in such activities like downstream petrochemicals, as some pre-feasible investment projects and ideas are awaiting consideration and fulfillment.
These are like: Plans to expand the production capacity of GPIC plants and possible poly propylene plant.
Furthermore, the World Trade Organisation (WTO) had opened vast investment opportunities in a very important supportive sector to oil industry, namely the energy services sector.
In this regard Bahrain, with its developed and sophisticated infrastructure, is in an ideal position to serve as a main supply and maintenance regional base for international oil and gas service companies.
With the establishment of NOGA with clear objectives spanning the whole oil and gas industry, we hope to focus more on our strategic directions in all the sectors you mentioned in your question.
A new direction NOGA's strategy would be to consider expanding our operating base and probably go outside i.e. international operations if opportunities exist. I have also mentioned in my talks and speeches that we would welcome foreign international investment in our existing industries or develop new ones.

OGN: Can you provide an insight into upstream development in terms of exploration and gas development?
We have just finished from a round of exploration activities in the eastern offshore with Chevron and Petronas. Exploration as you know is a high risk business and the results of this round have been unfortunately negative.
We are now studying the results and hope to revise our plans and come up with a new set of conditions and allocation of areas to encourage international exploration.
We are also currently undertaking with Thailand's PTTEP a joint study of northern offshore areas which should provide new opportunities.
The gas industry in Bahrain has developed remarkably since its official inauguration and inception in 1979 when Bahrain National Gas Company (Banagas) was established.
Therefore it goes without saying that this industry has contributed tremendously to the major economic and social transformation that took place in the last three decades. In 1988 Bahrain government had invested $75 million  to expand the capacity of Banagas to 280 million cubic feet a day.
Nevertheless, with the steep rise in demand locally on the gas from the manufacturing sectors as well as from the household consumption side, Bahrain with its annual average production of 1,000 million cubic feet per day, is studying and going through some certain strategic alternatives, including the possibilities and potentialities of importing gas from our neighbours. It is expected that the long term gas importing agreement would secure some additional 800 million-1,000 million cubic feet per day for Bahrain.
On the other side Bahrain Petroleum Company has started executing a project to drill eight Khuff wells and is aiming to install eight new Gas Dehydration Units at the Bahrain Field to supplement the gas supply. This is to meet the increasing gas demand from power generation and from other major industries in the Kingdom.

OGN: Will international companies be welcome to assist in these exploration objectives?
Most certainly. We have always encouraged foreign exploration since the 1960's. In fact our offshore exploration policy is based on inviting and working with international companies.
We are currently trying to make sure that the terms of business will help more in the future.

OGN: What plans are in place to spearhead Bapco's ambitious modernisation programme?
The Bapco's Strategic Investment Programme is a comprehensive 10-year programme that will make Bapco Refinery one of the best in terms of application of technology and compliance with environmental rules.
At the forefront of this is the LSDP project (Low Sulphur Diesel Project) which should be on line with by end of 2007. It will give the ability to make super sweet Diesel.
Also the Gas Desulphurisation Project and Effluent Treatment Project will form major parts of a total package.
On the Upstream we will embark on an ambition Gas drilling programme plus some enhanced oil recovery techniques.

OGN: New job opportunities are being created by the upstream, midstream and downstream investments. How do you see these initiatives translating into job opportunities for Bahrainis and international investors wishing to establish offices here?
One of the objectives of embarking on ambitious investment programmes like Bapco's Strategic Investment Programme and other industrial projects is not only to achieve the business objectives of such schemes but also to create new job opportunities especially in the downstream sector. We are looking at various opportunities in oil, gas, petrochemicals and conversion industries.
The emphasis will be on giving opportunities as much as possible and practicable to foreign investments and the local private sector.
We have seen recently a move by major international firms to establish offices here.
Many foreign companies use Bahrain as base and headquarters for their operations inside and outside the region, benefiting from the vast investment opportunities available as well as from flexible legislative systems, including tax-free regulations, and highly sophisticated infrastructure.

OGN: Can you provide an insight into environmental controls in relation to the oil and gas sectors?
All our projects in the oil and gas industry must comply with the latest environmental standards and regulations as set by the Environmental Protection Authority.
Prior to any project getting the go ahead, a full compliance study is carried out to ensure that the projects effluent and emissions are within the acceptable limits.
A major part of the Bapco Strategic Investment Programme is devoted to environmental and effluent treatment schemes for the refinery. The LSDP project itself is partly an environmentally driven project since it will produce Diesel to the latest European and US specifications of sulphur and emission control.

OGN: Accountability to the public is one of the main aims of the Authority? Could you elaborate on this please?
An entity entrusted with the development of the most important resources of the Kingdom, namely oil and gas, we have a duty and obligation to be accountable and transparent in our operations and conduct of our business.
We have reflected this in our new Mission, Vision, and Values that we have formulated.
We will have within the Authority a section dealing with addressing issues raised in the public domain.