GPIC signs an agreement with Italian oilfield services company Saipem to study new expansion projects

Rome, Feb.4 (BNA): The Gulf Petrochemical Industries Company (GPIC) today signed an agreement with the Italian oilfield services company Saipem to study the feasibility of various projects in Bahrain, on the sidelines of His Royal Highness Prince Salman bin Hamad Al Khalifa, Crown Prince, Deputy Supreme Commander and First Deputy Prime Minister’s official visit to the Italian Republic. The agreement is part of GPIC’s strategy to expand operations and build on recent successes by studying the viability of implementing new projects within its industrial complex at Sitra and leverage the discovery of Bahrain’s largest oil field, which was announced in 2018. In a statement to mark the occasion, the Minister of Oil, HE Shaikh Mohammed bin Khalifa Al Khalifa, expressed the support of the National Oil and Gas Authority (NOGA) to all its subsidiary companies, noting their contribution to the development and sustainability of the Bahraini economy and attraction of foreign investments into the Kingdom. In this regard, HE the Minister highlighted that the strategy for Bahrain’s Oil and Gas sector is in line with the Kingdom’s comprehensive development goals, led by HM the King, and receive the continuous support of HRH the Prime Minister and HRH the Crown Prince. The Minter of Oil highlighted GPIC’s proven excellence in production and marketing, adding that the company’s expansion projects have the full support of both the government and shareholders. The Minister of Oil added that the agreement signed with Saipem will enhance GPIC’s ability to increase production, expanding its contribution to the Kingdom’s economy, in line with the directives of HRH the Crown Prince. For his part, the President of GPIC, Dr. Abdulrahman Jawahery, highlighted that the agreement is part of the strengthening of economic relations between Bahrain and Italy, which aligns perfectly with GPIC’s strategic expansion plans. Dr. Jawahery added that the Italian company Saipem, previously known as Snamprogetti, is one of a group of companies that has historically contributed to the implementation and construction of many of GPIC’s facilities since its inception in 1980. Dr. Jawahery expressed his appreciation for HRH the Crown Prince’s instrumental support to GPIC’s expansion plans, which are grounded on the expertise of the company’s Bahraini personnel and the collaboration with technologically advanced companies such as Saipem. Dr. Jawahery went on to explain that the agreement includes studies for three projects: The first one relates to the technical and commercial feasibility of increasing GPIC’s plants daily production of Ammonia, Urea and Methanol by approximately 15 per cent, through technical solutions that reduce energy consumption and use natural gas. The estimated cost of this project would be 350 Million Euros. The second project consists of a prefeasibility study to build a Mega Ammonia/Urea Plant with a daily production capacity of 2,200MT and 3,400MT of Ammonia and Urea respectively. The estimated cost of this project would be 1.5 - 2 Billion Euros. The third project will look to determine the quality of gas feedstock in the fields discovered in 2018. If proven feasible and implemented, these gas projects are estimated to cost 1.5 Billion Euros. The agreement between GPIC and Saipem is consistent with the directives of the Kingdom of Bahrain’s Government to develop and modernize its Oil Sector and the Petrochemical Industry. The National Oil and Gas Authority, led by HE the Minister of Oil, is making significant efforts to support GPIC’s projects, including by enhancing cooperation with regional and international partners whilst maximizing the benefits provided by the Government. The Gulf Petrochemical Industry Company (GPIC) has close ties with many Italian companies, having made deals worth over 15 million US dollars during the last two years. The decision to study the implementation of new expansion projects with the support of Saipem’s expertise is in line with GPIC’s Board of Directors’ philosophy and strategy.