Unleashing energy, jobs

TDT | Manama

Email: mail@newsofbahrain.com

The Shura Council will debate on Sunday a decree-law approving an oil and gas concession agreement for the Jubah and Pre-Tawil reservoirs in the Bahrain Field, after its Financial and Economic Affairs Committee recommended passing it.

The agreement, signed on 6 August 2025, is between Bahrain’s government, represented by the Ministry of Oil and Environment, Bapco Energies B.S.C. (closed), and EOG Resources Bahrain Awali W.L.L.

The committee said the deal would bring large sums into the oil and gas sector, lift output, make better use of Bahrain’s natural resources and add new income to the state budget.

It said Bahraini firms and workers also stood to gain. The agreement includes duties on technology transfer, training for Bahraini staff, preference for local suppliers and priority for Bahrainis in jobs tied to the running of the operations, including supervisory and management posts.

The decree-law has two articles. The first approves the concession agreement, while the second deals with its entry into force.

It was issued under Article 38 of the Constitution, which allows decree-laws between legislative terms when delay is deemed harmful. Under the Shura Council’s rules, members must vote to approve or reject the decree-law as it stands, without changing its wording.

The committee said the urgency lay in the need to bring the concession into force so exploration and later work could begin under agreed timetables. A delay, it said, would hold up capital spending, field work and the use of Bahrain’s resources.

The first phase begins once the agreement takes effect and covers exploration. Any commercial discovery would then be followed by further stages for appraisal and development, each tied to fixed dates.

The committee said the oil industry remained a main source of energy for Bahrain, with many productive and service sectors relying on petroleum materials to run.

It also linked the agreement to energy security, saying it would help raise returns from the kingdom’s energy assets and feed the public budget.

The report said the concession holder must also create a social contribution fund for projects in Bahrain, including social, educational, health and similar schemes, under the ministry’s watch and in co-ordination with the relevant bodies.

The committee said this would tie the agreement to wider public gains, through jobs, training, local contracts and social projects, alongside the planned oil and gas work.