In November 2022 Bapco Energies, Bahrain’s oil and gas holding company, announced a significant hydrocarbons discovery, marking the first major find in the kingdom since the unveiling of the Khaleej Al Bahrain field in 2018. The discovery consists of two natural gas reservoirs located in the unconventional Al Jawf and Al Joubah layers, underneath the Al Onaiza and Al Khuf reservoirs. The last two reservoirs are in production and form part of the Bahrain Field, a well-established onshore oil field also known as the Awali Field, named after the municipality at its northern end. The field has been producing oil since 1932 and holds historical significance as the first oil-producing facility on the Arabian Peninsula.
Relative Complexities
The Bahrain Field has a rich history of oil and gas production, primarily derived from the Jurassic and Cretaceous reservoirs situated closer to the surface, such as Al Khuf and Al Onaiza. However, exploration and production companies have been directing their attention to deeper layers since the 1980s. During this period, several potential deep-gas deposits were identified, although the economic viability of their development was limited by low global prices. Consequently, these discoveries remained primarily of geological interest.
In recent years the economic landscape has become more favourable, prompting a shift in focus towards the development of these deeper reserves. Bahrain, recognising the depletion of its conventional reserves, has intensified its efforts to bring new oil and gas capacity online. As a result, the exploration of deeper layers gained prominence as it holds considerable potential for additional hydrocarbons resources within the region.
Tatweer Petroleum, the operator of the Bahrain Field, conducted a thorough examination of the formations underlying Al Khuf and Al Onaiza, resulting in the announcement of the new discoveries in November 2022. To assess the scale of the reservoirs, Tatweer partnered with Ryder Scott, a US-based petroleum consulting firm. While the exact size of the reservoirs has not been disclosed, in January 2023, Bapco Energies, the company that owns Tatweer, found it sufficient enough to merit further study.
Moving forwards, Bapco Energies has revealed plans for further drilling operations in 2023 and 2024, targeting the exploration of the Al Taweel and Al Sara layers situated beneath Al Jawf. Additionally, efforts will be made to enhance productivity and increase production through horizontal drilling techniques in the Al Joubah reservoir. This indicates that despite the complexities involved in extracting resources from these deep onshore reservoirs, progress in their development may outpace the offshore Khaleej Al Bahrain shale oil discoveries made in 2018. The offshore discoveries were reported to hold substantial reserves, including 80bn barrels of shale oil and 20trn cu feet of gas, figures that far surpass current reserves. (see overview).
Upgrades
In 2021 Tatweer initiated the drilling of evaluation wells in the field and initially planned to commence operational wells by the end of 2022. However, the commercial development of the field’s shale reserves is anticipated to take place later, with Bapco Energies suggesting a potential timeline of 2025. Shale deposits typically yield heavy oil, which requires specialised refining capabilities not currently available at Bahrain’s Sitra refinery. The refinery is undergoing a substantial upgrade, expected to be finalised by 2024, to expand its capacity and enhance its ability to process heavier grades of oil.
Regarding the Al Jawf and Al Joubah discoveries, Bapco Energies has indicated that a strategy will be determined by the end of the first half of 2023, suggesting a plan for their development and utilisation. The efforts to develop these discoveries align with the infrastructure improvements to facilitate production and refining from the shale reserves.
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