By Dr Mustafa Al Sayed
Chief Executive
The Bahrain Petroleum Company BSC
As oil industry experts from around the world gather in Bahrain for the 2007 Middle East Oil Show, we take special pride in being able to showcase our Low Sulphur Diesel Production (LSDP) Complex which, after more than three years of intensive construction and engineering work, is scheduled for start-up this month.

Bapco can look back on substantial progress during 2006 on its $1,000 million Strategic Investment Programme (SIP) which will propel the Company into the forefront of refining technology and make the Company a world leader in the production of low sulphur diesel.
This is the cornerstone of Bapco’s SIP and will enable the Company to export diesel across the globe because it will meet the strictest environmental standards imposed by governments on exhaust emissions.
Sulphur content will be reduced from the current average level of 650 parts per million to 250 ppm and then to 10 ppm.
Up to now we have been limited in our export sales of diesel to those countries which had less stringent regulations concerning exhaust emissions, such as Africa, Asia and the Arabian Gulf.
That will change when the LSDP comes onstream. We will be able to sell to Europe and the USA, which currently have the strictest limits on levels of sulphur content in diesel imports.
The strategic plan will greatly increase shareholder value, improve the competitive position of the refinery, transform the company to a regional leader, and elevate the company to world class status in terms of environmental performance.
The Refinery Gas Desuphurisation Plant will also bring major environmental benefits, but this time for the people of Bahrain, and our neighbourhood communities.
This project is set for completion in early 2008 at an estimated cost of $140 million.
It will significantly reduce air emissions and improve effluent water quality at the Bapco Refinery in order to meet the latest environmental regulations.
During 2006, the project progressed through most detailed engineering activities, completed all major project procurement milestones and initiated site construction.
At the end of 2006 project progress was 37 per cent. The Bapco engineering team resident in Foster Wheeler Italiano Milan office returned to Bahrain in December 2006.
During the year we also reached significant milestones in oil and gas production, and in refining performance.
Considerable progress was made on the Khuff Gas development programme to ensure continuity of gas supply to meet the increasing gas demand necessary for power generation and other major industries in the Kingdom.
Refining saw several record-breaking performances, thanks to a plant availability of more than 97 per cent.
This achievement is a reflection of the whole Company, covering oil processing, maintenance, reliability, power and utilities and many other supporting groups. As a result, the refinery’s average daily throughput target of 253,000 barrels was exceeded by 5,700 bpd.
The year 2006 was also marked by important environmental projects, by extending quality assurance standards, and by innovative training methods to release the potential of our brightest employees.
Today, we export refined products to markets in the Middle East, Africa, Asia and Far East, produce gas to power the industries of Bahrain, and provide fuel for the airline industry.
This past year we have again benefited greatly from historically high oil prices, which are enabling the Government of Bahrain to move forward in its strategy of industrial diversification.
I am proud to lead a Company which is the powerhouse of the Bahrain economy.
All these achievements would not have been possible without the full support of our Board Committee headed by His Excellency Dr Abdul-Hussain bin Ali Mirza, the contribution of management, and the efforts of our loyal and dedicated employees.