Bapco achieves financial close for refinery upgrade

MANAMA: Bapco has achieved financial close on its multi-billion dollar refinery modernisation programme.

The wrapping up of the financial package means the company can proceed to the next stage of the Bapco Modernisation Programme (BMP).

The programme will see a major expansion and upgrade of the facility that will allow the total refinery throughput to increase up to a maximum of 380,000 barrels per day (bpd).

Bapco assembled five export credit agencies (ECAs) and a syndicate of 21 commercial banks to finance the project.

This includes a combination of commercial and Islamic bank financing with both regional and international banks.

Financing was formally secured last December, with BNP Paribas, HSBC Middle East and Verus Partners acting as financial advisers to help Bapco meet the conditions required successfully to close the financing process.

Oil Minister Shaikh Mohammed bin Khalifa Al Khalifa said “the milestone not only reinforces Bapco’s ability to secure funding for mega projects in Bahrain, but also confirms that Bahrain is an attractive destination for international and regional funding”.

According to Bapco board member and BMP steering committee chairman Dr Dawood Nassif the company would now move forward with the implementation phase which will contribute to “Bapco’s position as one of the most competitive refineries”.

The foundation stone of the project was laid in March this year by His Royal Highness Prime Minister Prince Khalifa bin Salman Al Khalifa in the presence of His Royal Highness Prince Salman bin Hamad Al Khalifa, Crown Prince, Deputy Supreme Commander and First Deputy Premier.

TechnipFMC, jointly with Samsung Engineering and Tecnicas Reunidas, were earlier awarded a $4.2 billion contract by Bapco for the project.

The project will be executed on engineering, procurement, construction and commissioning lump sum turnkey basis and is slated for completion in 2022.



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