The completion of the project is expected to boost Bahrain’s natural gas development and utilisation. Credit: Lungkhaek/Shutterstock.

Bapco Upstream has awarded a $288m (BD108.56m) contract to Jereh Oil & Gas Engineering, a unit of the Chinese oilfield services provider Jereh. 

The EPCC contract is for gas compressor stations.  

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Bahrain, a key player in the Gulf’s energy market, is advancing its oil and gas sector while diversifying its economy.  

Bapco Upstream’s strategic projects, including this latest EPCC contract, aim to upgrade energy infrastructure and ensure a stable energy supply. 

Bapco Upstream is 100% owned by Bapco Energies, the state-owned oil and gas company of Bahrain. 

Jereh said it was selected as the preferred bidder over several international engineering companies.  

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The project scope includes the design, procurement, construction and commissioning of compression stations and a central compression facility.  

The completion of the project is expected to boost Bahrain’s natural gas development and utilisation. 

Jereh stated that it has a track record of delivering projects for major national oil companies in the Middle East and North Africa region, including Kuwait Oil Company, ADNOC and Algeria SONATRACH.  

In a separate development, Bapco Energies recently agreed to divest a minority stake in the Saudi Bahrain Pipeline Company to BlackRock‘s Diversified Infrastructure team.  

The SBPC pipeline is key for transporting crude oil from Saudi Aramco to Bahrain’s national refinery.  

The collaboration with BlackRock supports Bahrain’s aim of achieving net-zero carbon emissions by 2060. 

Furthermore, Bapco Energies and BlackRock signed a memorandum of understanding to explore further collaboration on infrastructure and decarbonisation projects in Bahrain.  

These initiatives range from renewable energy to carbon capture, targeting a reduction in the carbon footprint of Bahrain’s infrastructure. 

Bapco Energies has also taken steps to consolidate its investments by acquiring minority stakes in Bapco Gas from Chevron and Boubyan Petrochemicals.  

This acquisition aligns with the company’s strategy to integrate operations and enhance synergies across its subsidiaries.