Gas exploration agreements mark a major step in strengthening investment in Bahrain and boosting its energy security, a senior official has said.
Oil and Environment Minister and Special Envoy for Climate Affairs Dr Mohammed Bin Daina made the remarks as the Shura Council unanimously approved a decree-law endorsing a concession agreement for the Juba and pre-Tawil reservoirs in the historic Bahrain Field.
The decree, already approved by MPs last week, clears the way for advanced natural gas exploration under an agreement signed on August 6 last year between the government, Bapco Energies and EOG Resources Bahrain Awali.
Dr Bin Daina revealed that the project carries a significant investment commitment of $200 million by the foreign partner, reflecting confidence in Bahrain’s investment climate.
“About $100m has been allocated for drilling wells. Three of the four planned gas wells have already been completed, and the results and production indicators are promising,” he said.
“A further $100m investment will be dedicated to drilling four additional wells in the next phase.”
He said the concession is important for securing gas supplies using advanced global technology, attracting fully financed foreign investment and developing Bahraini expertise.
“This project opens quality opportunities for Bahraini youth through training and technical experience. Bahrain today has distinguished competencies in this field at a regional level,” he added.
The minister stressed that the next stage requires attracting more global companies and reinforcing investor confidence to support economic development plans and ensure energy sustainability.
Shura’s financial and economic affairs committee reviewed the decree.
First Vice Chairman Jamal Fakhro called for reassuring data on the long-term prospects of oil and gas recovery under the 40-year concession.
“We need clear information on the availability of oil and gas in the coming years that can help finance the state budget, especially as 65 per cent of the budget still depends on oil revenues,” he said.
Under the agreement, the foreign partner funds exploration at no cost to the state during the initial phase, drilling wells to assess commercial viability in unconventional onshore reservoirs. If successful, production proceeds under a joint framework.
Bahrain secures a 10pc royalty on net profits in addition to income taxation overseen by the National Bureau for Revenue, alongside strict environmental, audit, anti-corruption and local-content provisions.
The concession is also expected to facilitate technology transfer. Nine Bahraini employees have already travelled to the US to observe the latest gas extraction techniques, with further training planned for Bapco Upstream staff.
The unanimous approval by both chambers signals strong legislative backing for what officials describe as a strategic project to enhance energy security, investment inflows and national skills development in Bahrain’s most historic oilfield.
Meanwhile, the Shura Council also unanimously approved the following and referred them to His Majesty King Hamad for ratification:
- A mutual taxation agreement with Saudi Arabia
- Amendments to Decree-Law No (1) of 1985 regulating agricultural drains, introducing tougher fines and prison terms for violations such as blocking water channels, altering their course, constructing over them, or failing to comply with drainage instructions issued by the relevant authority. Under the revised framework, penalties will be significantly increased compared to the current law, with offenders facing fines ranging from BD1,000 to BD10,000 and imprisonment of no less than three months. Repeat violations will carry doubled penalties.
- A draft law approving Bahrain’s accession to Annex VI of the International Convention for the Prevention of Pollution from Ships. It aims to tighten controls on air pollution from maritime operations and align the kingdom with global environmental standards.
- A draft law ratifying an agreement between Bahrain and Pakistan that allows convicted prisoners to serve custodial sentences in their home country under strict legal conditions. The agreement, comprising 22 articles, establishes procedures for transferring sentenced persons at their request, or that of a legal representative, provided there is a final court ruling, voluntary consent and approval by both states.
Each country will designate a central authority to handle requests through diplomatic channels, while the receiving state continues executing the sentence in line with its own laws.
Present at the session were Municipalities Affairs and Agriculture Minister Wael Al Mubarak, Transportation and Telecommunications Ministry Ports and Maritime Under-Secretary Bader Al Mahmood, National Bureau for Revenue chief executive officer Rana Faqih and senior Foreign Ministry officials.
&uuid=(email))