Bahrain Announces Largest Oil Discovery Since 1932

Manama: Bahrain on Sunday announced the discovery of a shale oil and a deep gas resource in Khaleej Al Bahrain Basin, located off the west coast of the kingdom.

The find represents the largest discovery of oil in the Kingdom since 1932, when extraction started on Bahrain’s first oil well within the Bahrain Oil Field.

The new resource is forecast to contain highly significant quantities of tight oil, also known as shale, and deeply located gas, understood to dwarf Bahrain’s current reserves.

The announcement was made by Bahrain’s Higher Committee for Natural Resources and Economic Security, chaired by Crown Prince Salman Bin Hamad Al Khalifa.

“Following the initial discovery of the resource, detailed analysis of the find’s content, size and extraction viability has been undertaken alongside internationally-renowned petroleum industry consultants, DeGolyer and MacNaughton [Demac],” Minister of Oil Shaikh Mohammad Bin Khalifa Al Khalifa said.

“Today we announce that initial analysis demonstrates the find is at substantial levels, capable of supporting the long-term extraction of tight oil and deep gas.”

Breaks new ground

The government confirmed that modelling and analytical studies are ongoing, led by Bahrain’s National Oil and Gas Authority (NOGA) working alongside private sector partners, aimed at detailing the ultimate quantity and market value of the find.

A DeGolyer and MacNaughton spokesperson said that “Demac evaluated the reservoir and test data, evaluated volumetric and recovery potential, and provided reports documenting both Prospective and Contingent Resources.”

“This is a project which breaks new ground for the industry,” the spokesperson said.

The discovery, expected to support extensive, long-term downstream activities, follows a recent uplift in oil and gas exploration projects undertaken in response to directives from King Hamad to the Higher Committee for Natural Resources and Economic Security to increase exploration activities.

Last year the Committee took the decision to accelerate initiatives to explore sites to the west of Bahrain, which resulted in the discovery of the resource and oil being struck in the fourth quarter of 2017.

Additional details on the discovery, including initial findings of size and extraction viability, will be provided by the oil ministry at a press conference on Wednesday.