An expansion of Bahrain’s Sitra crude oil refinery is expected to cost around $5 billion and the facility is likely to be commissioned by 2019, the kingdom’s energy minister has said.

“We have the refinery modernisation which will cost around $5 billion. Already front-end engineering and design (FEED) has been awarded – FEED should be ready by the end of the first quarter of 2016,” Dr Abdul-Hussain bin Ali Mirza told Reuters.

“The increase in capacity according to the current plan is from 260,000 barrels per day to 360,000 and it will be commissioned by 2019.”

He added, “Financing will be through borrowing, we haven’t finalised this yet.”

Construction of a pipeline between Saudi Arabia and Bahrain, which will replace an ageing one and lift capacity to 350,000 bpd from 230,000, is expected to be finished by 2018, Dr Mirza said. Previously, officials had estimated the pipeline would be completed by the third quarter of 2016. He did not give a reason for the change.

He added that this year Bahrain would ask companies to bid to explore offshore blocks for oil and gas.