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Bapco evaluates bids for Bahrain Sitra Refinery Expansion

Bapco to award Bahrain Refinery FEED and PMC

The national oil company (NOC) Bahrain Petroleum Company (Bapco) is currently evaluating the technical and commercial offers submitted by the engineering companies for the front end engineering and design (FEED)  and the project management consultancy (PMC) contracts related to the brownfield Sitra Refinery Expansion project in Bahrain.

This critical phase of decision was long awaited since the completion of the feasibility study in June 2012.

To move from the feasibility study to the FEED, this Bapco Refinery Expansion project had to overcome numerous issues including to find partners for the licenses, to evaluate how far should the upgrading, to contain this expansion on the available space around the existing refinery and considering future petrochemical projects to be added downstream the refinery.

Bapco_Sitrah_Refinery_Expansion_mapIn this context of so important opened questions, the costs estimations for this Sitra Refinery Expansion were fluctuating between $6.5 billion and $10 billion of capital expenditure depending on final design.

The Sitra Refinery started operations in 1936 with a production of 10,000 barrels per day (b/d).

Today this Bahrain refinery is treating 260,000 b/d of crude oil.

From this 260,000 b/d of crude oil, 220,000 b/d come from Saudi Arabia through 54 kilometers pipeline and 40,000 b/d from the local production in Bahrain.

On the sales side, only 8% of Bapco Sitra refinery production remains in Bahrain, the 92% is exported from Bahrain to other countries in Middle East, Africa, India and Asia.

Bapco to select licenses for Sitra on second half 2014

After evaluating several options to expand the Sitra Refinery up to 500,000 b/d total capacity, Bapco is considering finally an increase of 100,000 b/d on the top of the existing 260,000 b/d.

The Sitra Refinery Expansion project will include:

 – Crude unit and associated facilities

 – Hydrocracker and associated facilities

 – Residue conversion units

 – Waste treatment facility

The residue conversion unit is strategic for the Sitra Refinery as it will open access to cheaper feedstock of heavy crude oil and thus, a larger diversity of sources of supply.

Barhain_Sitra_Refinery_ExpansionThe hydrocracker and associated facilities will include:

 – New hydrocracking unit with 60,000 b/d capacity

 – Expansion of the mild hydrocracking unit from 54,000 b/d to 70,000 b/d capacity

 – New fluid catalytic cracker (FCC)

 – Dehydrosulfurization (DHDS) unit to produce diesel according to international standards with less than 10 ppm.

This waste water treatment facility covers:

 – Ultrafiltration and biological treatment awarded to GE with its ZeeWeed technology

 – Four membrane bioreactor trains sanctioned to GS Engineering & Construction

Different engineering companies submitted technical and commercial offer for the FEED contract and the PMC contract.

At the end of the first quarter 2014, Bapco should award the FEED contract and PMC contract while the licenses should be tendered on second half of 2014 for a first production of the Bahrain Sitra Refinery Expansion project still in 2017.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

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