Bapco reaches financial close for modernisation project

The Bahrain Petroleum Company (Bapco) announced reaching a financial close on its multi-billion dollar Bapco Modernisation Programme (BMP), allowing it to proceed to the next stage of the project. BMP is projected to be completed by 2022 and will increase Bapco’s refining capacity to 380,000 barrels per day from 267,000 barrels.

Foundation stone of the project was laid on 5 March 2019 in a ceremony held under the patronage of HRH Prince Khalifa bin Salman Al Khalifa, the Prime Minister and in presence of HRH Prince Salman bin Hamad Al Khalifa, the Crown Prince Deputy Supreme Commander First Deputy Premier.

Bapco assembled five export credit agencies (ECAs) and a syndicate of 21 commercial banks to finance the project. Financing was formally secured on 20 December 2018, with BNP Paribas, HSBC Middle East and Verus Partners acting as financial advisors. Commenting, Shaikh Mohamed bin Khalifa Al-Khalifa, the Minister of Oil, said: “I am proud of this team for securing financial close on this major project. We achieved this by assembling a strong team that worked tirelessly to secure a positive result.”

For his part, Dr Dawood Nassif Bapco Board Director and Chairman of BMP Steering Committee added: “We are pleased to reach the financial close of this vital project and we look eagerly to move forward with the implementation phase which will contribute to Bapco’s position as one of the most competitive refineries.”