Bahrain announces major offshore oil and gas find to boost reserves
Kingdom reveals exciting new discovery which could “dwarf” current reserves and transform its production outlook.
Bahrain, the smallest oil producer among the GCC nations, has reportedly unearthed a major new hydrocarbon find according to media reports.
The kingdom’s daily production has averaged around 40,000-50,000 barrels and much of this comes from the long-standing Bahrain Field. Bahrain also receives revenue from an oilfield, the offshore Abu Safah, which it shares with Saudi Arabia.
Presently, despite oil having been discovered in Bahrain 85 years ago, its output ranks alongside the likes of Cuba and Uzbekistan.
The new discovery is located off the island’s west coast in the Khaleej Al Bahrain basin. The country’s news agency stated the find “is understood to dwarf Bahrain’s current reserves”.
The kingdom has long been keen to spike its daily production and the kingdom’s Oil Minister Sheikh Mohamed bin Khalifa Al Khalifa said “Initial analysis demonstrates the find is at substantial levels, capable of supporting the long-term extraction of tight oil and deep gas.”
The extraction of tight oil and deep gas is challenging and potentially expensive. But oil prices are currently close to $70 a barrel.
It is reported that consultants DeGolyer & MacNaughton Corporation evaluated the field and more details regarding the potential size of the reserves and the feasibility of exploiting them are due within days.