Coinciding with the upgrade of the Bapco refinery in Bahrain, an agreement totaling $300 million on the combined onshore / offshore 115-kilometre oil pipeline, 73 kms of which will run overland and the rest under the Gulf, has been made between Saudi Arabia and Bahrain. The pipeline is expected to be operational in 2018 and will transport 350,000 barrels per day from the Saudi Abu Safa oil field.

Saudi Al-Rabie Holding company won the contract of building the land line while the UAE National Petroleum Construction Company will take charge of the under-sea part of the project. Tenders will be put in place for Bahraini companies soon.

The signing was attended by a host of dignitaries and senior officials from the oil and gas sector in Bahrain, Saudi Arabia and the UAE, including Bahraini Energy Minister Dr. Abdul Hussain bin Ali Mirza, Board Chairman of Bahrain Petroleum Company (Bapco) Shaikh Mohammed bin Khalifa bin Ahmed Al Khalifa and Deputy Board Chairman of Saudi ARAMCO Fahad Al Hilal. The agreement is considered as a landmark event given the importance of the new oil pipeline in supporting the oil and gas sector and backing efforts aimed at developing the energy sector and boosting sustainable development. The new pipeline will replace an ageing 230,000 bpd pipeline which will ultimately be mothballed.