Bapco reaches financial close on Upgrade Programme

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Manama, May 19 (BNA): The Bahrain Petroleum Company (Bapco) announces today that it has reached financial close on its multi-billion dollar Bapco Modernisation Programme (BMP). The financial package is a key milestone in the BMP's progress and its successful closure means Bapco can proceed to the next stage of the project.

 

In a ceremony held under the patronage of His Royal Highness Prime Minister Prince Khalifa bin Salman Al Khalifa, and in presence of His Royal Highness Prince Salman bin Hamad Al Khalifa, the Crown Prince, Deputy Supreme Commander and First Deputy Premier, on March 5, 2019, the foundation stone of the project was laid. BMP is projected to be completed by 2022 and will contribute significantly to the sustainable development in the Kingdom of Bahrain.

 

It should be noted that the BMP is a major undertaking for the Company and will increase Bapco's refining capacity to 380,000 barrels per day from 267,000 barrels, enhance the company's product slate, improve energy efficiency, and transform the company into one of the most competitive and environmentally compliant refineries.

 

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 on 20 December 2018, with BNP Paribas, HSBC Middle East and Verus Partners acting as financial advisors to help Bapco meet the conditions required successfully to close the financing process.

 

Commenting on this occasion, Shaikh Mohammed Khalifa Al Khalifa, Minister of Oil, said: “I am proud of this team for securing financial close on this major project. We achieved this by assembling a strong team that worked tirelessly to secure a positive result. Given the size and scale of the BMP, this is a mutually beneficial conclusion for a wide variety of partners from across the globe because it means we can provide a wider product offering and meet higher demand from our customers. Overall, this milestone not only reinforces our ability to secure funding for megaprojects in the Kingdom of Bahrain, but also confirms that Bahrain is an attractive destination for international and regional funding.”

 

He further added: “I am honoured to express sincere thanks and appreciation to His Majesty King Hamad bin Isa Al Khalifa, His Royal Highness Prime Minister Prince Khalifa bin Salman Al Khalifa, and in presence of His Royal Highness Prince Salman bin Hamad Al Khalifa, the Crown Prince, Deputy Supreme Commander and First Deputy Premier, for their continuous support to this megaproject which represents a key-turning point to our development journey under the wise leadership directives.”

For his part, Dr. Dawood Nassif, Bapco Board Director and Chairman of BMP Steering Committee added: “We are pleased to reach the financial close of this vital project and we look eagerly to move forward with the implementation phase which will contribute to Bapco’s position as one of the most competitive refineries.”

 

WHQ