OIL'S WELL

AFTER 42 years of being at Bapco a softly-spoken Bahraini knows the company like the back of his hand.

And, having worked 15 hours-a-day, seven-days-a-week for more than four decades, Abdulkarim Jaffer Al Sayed, pictured above, shows no signs of slowing down now.

In fact, the oil company's new chief executive is all geared up to lead Bapco further along the path of modernisation and cutting-edge technology. On the drawing board are plans for a gas pipeline to Iran and Qatar and a strategy to add a sparkle to Bahrain's less valuable black gold.

He said: "Bapco is still considered to be a relatively old refinery having multiple units with a design capacity of 250,000 barrels a day.

"A modern refinery of this capacity will probably have one or two crude units but we at present have five which is not cost efficient. Our future plan at Bapco is to rationalise this.

"Also, Bapco's refinery is producing 15 per cent of the barrel as fuel oil. Fuel oil, referred to as the 'bottom of the barrel' is the heavy stuff that is sold at a lower price than the higher value products like gasoline or the jet fuel. So if we can convert this 15 per cent into a higher value product with the help of modern technological processes then it will result in more profitability for the company.

"So 2008 is the year when we will be studying different technologies which will transform this 15 per cent into a more profitable fuel. This project is estimated at $1 billion (BD376 million). So really Bapco is out to make itself more cost efficient and modern for the future."

Mr Al Sayed is also the chairman of a national committee involved in delicate negotiations over gas imports and has led talks in Qatar and Iran for bringing this vital commodity to Bahrain as it will play a role of growing importance in the kingdom's industrial sector.

Offshore and onshore development of oil wells is also on Bapco's agenda. "Bapco used to produce between 75,000 to 80,000 barrels a day back in the 70s. Now we are down to 35,000 barrels a day," he said.

"Our challenge is to benefit the Government of Bahrain to enhance the production of oil and gas and at the same time look at the opportunities for gas import," he stressed, adding that the development of employees' skills is an ongoing necessity for Bapco's continued success in the future.

Mr Al Sayed brushed aside concerns of problems with the trade unions and commented that "the interests of its approximately 3,200 employees is Bapco's concern and will be looked into appropriately".