Bapco’s operations comprise three main areas: oil and gas exploration and field production, refining of crude oil, and storage and distribution of finished products.

All these assets are maintained and operated to the highest safety standards to achieve maximum production and minimum impact on the local environment.
The Bahrain field produced 13.3 million barrels of oil, a reduction of just two percent over the previous year.
Natural and associated gas from the Bahrain field amounted to 470,400 million standard cubic feet (MMSCF) an increase of 9.8 per cent compared with 2004. Natural (Khuff) gas production rose to 363,000 MMSCF, an increase of 11.8 per cent.
The refinery processed a total of 97.2 million barrels, of which 83.9 million came via the A-B submarine pipeline from Saudi Arabia, and the remainder from the Bahrain field.
During 2005 the volume of export sales of refined product reached a record 85 million barrels, while sales of crude from the Abu Safah field amounted to 55 million barrels.
Several shipments of feedstocks were imported for blending into diesel, reflecting Bapco’s determination to react quickly to commercial opportunities.
About 95 per cent is exported by tanker from the marine terminal.
The distribution of exports of refined products was 30 per cent to neighbouring GCC countries, 30 per cent destined for Africa, 18 per cent into Asia including Japan while Europe took delivery of six per cent.
Oil and gas exploration and production
During the year intensive efforts were made to increase the prospects for successful oil and gas discovery in offshore areas, including the option of sharing data with our neighbouring countries.
A technical evaluation agreement was signed for Blocks 1 and 2, while a preliminary assessment of prospects in Blocks 3, 4, 5 and 6 was prepared.
In addition, data processing for 3D seismology and reservoir simulations were completed for the Bahrain field.
Strenuous efforts were made during the year to arrest the natural decline of the Bahrain oilfield, which is currently running at 14 per cent per year.
During 2005 a total of 27 wells were completed under the shallow well drilling programme, using state-of-the-art equipment.
So successful were these efforts that the decline was reduced to just two per cent.
Average oil production for the year was 36,500 barrels per day.
In contrast, the increasing demand for gas by industry required Bapco to increase production from 887 to 994 MMSCF per day in 2005.
A large part of this increase was taken up by the commissioning of Alba production line No 5.
In addition, a new 20-inch line to Al-Ezzell power station was completed, adding another major customer to Bapco’s list.
Out of eight new Khuff wells planned, five were completed during 2005. These eight wells are expected to contribute a further 200 MMSCF of gas per day.
Refining
The refinery set an all-time record crude run in 2005 by averaging 266,400 barrels per day. The previous record of 262,900 was set in 1999.
At the heart of this performance was a critical combination of employee dedication, sound business decision-making, and high levels of plant reliability and availability.
Plant availability during 2005 averaged 98.2 per cent compared to 95.4 per cent the previous year.
This on-going reliability was further enhanced by another notable achievement - reducing by 42 days the total time spent on six process unit shutdowns.
Translated into business perspective, this resulted in Bapco’s “lost profit opportunity” being reduced to just 2.7 US cents per barrel.
This is an excellent record compared to some of the best Asian refiners who are facing an LPO of 3.3 US cents.
 Storage and distribution  
Bapco has one of the largest oil storage facilities in the Middle East.
The refinery tank farm holds crude oil, intermediate and component blend stocks, while the tank farm at Sitra holds mainly finished products for the export and local markets. Total capacity is around 14 million barrels.
The future
During the second half of 2005 the Strategic Planning Council (SPC) prepared a strategic plan for the Company covering the period 2006-2010.
The business thrust for Bapco remains one of “Striving for Excellence” and this underpins all four themes of the strategic plan:
• Growth and diversification
• Operational excellence
• Responsible corporate citizenship
• Customer satisfaction.