Bapco's BD258 million ($684 million) Low Sulphur Diesel Production Project is on track for completion in the first quarter of next year.

This was revealed following a site inspection visit by Bapco President Mustafa Al Sayed, Deputy Chief Executive Tim Coombs and General Manager of major engineering projects Abdulkarim Al Sayed.
Acting Project Manager Hassan Abdulrahman welcomed the executives, who inspected the Bapco engineering and construction offices and met with the project engineering and operations staff.
During the inspection, executives expressed the importance of finishing the project to the highest safety standard.
The project team has achieved three million man-hours worked without a lost-time accident.
The project, the largest undertaking in the company's history, will enable Bapco to produce low-sulphur diesel and other high-value products to meet world demand for cleaner fuels.
Meanwhile, Finland's Neste Oil said it and Bapco were going ahead with plans to build a base oil production plant at Bapco's oil refinery.
The facility will be capable of producing 400,000 tonnes annually of sulphur-free Very High Viscosity Index (VHVI) base oil, used for blending top-tier lubricants, Neste said.
Feedstock for the new facility, which is due to come onstream in the first half of 2008, will be provided by the Bapco refinery's low-sulphur diesel hydrocracker, which is due to come onstream in mid-2007.
Neste will be responsible for sales and marketing of the plant's production.
Bapco will also outlay more than $150 million to expand its gas production and distribution network in order to meet power generation demands.
Plans involve the drilling of eight Khuff gas wells and the installation of eight gas dehydration units, according to Dr Al Sayed.
Meanwhile, Bapco is to partially shut its 254,000 barrels per day Sitra refinery for maintenance in the first quarter of 2006, Adel Khalil Almoayyed, General Manager for marketing at Bapco, said.
The Milan based Foster Wheeler Italiana SpA has been awarded a nearly $112 million engineering, procurement and construction contract by Bapco for a refinery gas desulphurisation (RGD) project at its refinery located near Sitra. The project is scheduled for completion by 4Q 2007-2008.
The RGD project is a part of Bapco's efforts for upgrading its refineries at a cost of $1 billion.
The project aims to remove sulphur from refinery streams, treat sour water to meet standards of government environmental regulations and meet hydrogen sulphide specifications wherever required to facilitate export of LPG rich streams.
Several grassroots plants are also on the anvil, as part of the RGD project. A 220 tonnes per day sulphur recovery unit, a tail gas treating unit, two sour water stripping units, an olefinic gas treatment and low flow off gas streams treatment unit will be installed.
Foster Wheeler will also upgrade the existing diethanolamine unit, and establish interconnections between other process and utilities units and the new facilities.
Meanwhile, Bapco raised the term price premiums on its 2006 middle distillate exports by around $1 per barrel, in tandem with other Middle East fuel exporters, traders said.
The term premium for 0.5 per cent sulphur gas oil was set 95 cents higher than 2005 at $2.50 per barrel to Middle East spot quotes, while the jet fuel premium rose $1.10 per barrel from this year to $2.25 to Middle East benchmark prices, they said.
"They (Bapco) are following the footsteps of Saudi Aramco. The demand picture is mixed. The Middle East producers expect demand to strengthen next year but some Asian refiners cut their term prices instead," said a trader.
Bapco's exports volumes were not immediately available but the winners include Vitol, traders said.