Manama, Bahrain – In a significant step toward strengthening its energy infrastructure, the Kingdom of Bahrain has awarded a major contract to global energy services company Petrofac. The agreement, valued in the multi-million-dollar range, was granted by Bapco Upstream W.L.L. (formerly Tatweer Petroleum – Bahrain Field Development Company W.L.L.).
This two-year engineering, procurement, construction, and commissioning (EPCC) contract is focused on enhancing the country’s gas production capabilities to meet its growing domestic energy demands.
Supporting Bahrain’s Growing Energy Needs
Under the new agreement, Petrofac will be responsible for the delivery of well hook-ups, construction of associated pipelines, and integration of tie-ins for multiple new wells within the expansive Bahrain Field. These new developments are considered vital to Bapco Upstream’s strategic plans to expand natural gas production and ensure consistent supply for local industries, utilities, and residential use.
Natural gas remains a critical resource for Bahrain’s economy. It supports power generation, water desalination, and industrial operations. With demand on the rise, the government is making strategic investments in upstream energy development to ensure the country’s long-term energy security.
Longstanding Partnership Built on Performance
This is not the first time Petrofac has worked with Bahrain’s oil and gas sector. The company has been an active partner for over a decade, successfully delivering various infrastructure and production projects in the country. Its collaboration with Bapco Upstream has included complex engineering works such as gas dehydration plants, pipeline systems, and enhanced oil recovery (EOR) installations.
Tareq Kawash, Petrofac’s Group Chief Executive, expressed the company’s continued commitment to Bahrain. He said the new award is a reflection of Petrofac’s deep understanding of the region’s energy needs, their strong execution record, and solid relationships with local partners.
He added that Petrofac’s long history in the Kingdom positions them well to carry out this new scope of work safely, efficiently, and to the highest standards of quality.
Driving Bahrain’s Vision 2030
This contract aligns closely with Bahrain’s long-term national development plan—Vision 2030. The economic strategy aims to diversify the economy away from a heavy dependence on oil, while still strengthening key sectors such as energy, manufacturing, and logistics.
By expanding gas infrastructure, Bahrain is taking an essential step toward creating a more resilient and self-sufficient energy ecosystem. Natural gas not only fuels the country’s power plants, but it also supports the development of new industries, including petrochemicals and aluminum production, which are vital to the country’s non-oil GDP.
Investments in upstream gas infrastructure are seen as foundational to enabling further industrial growth, attracting foreign investment, and supporting sustainable development goals.
Job Creation and Local Partnerships
A key feature of the Petrofac contract is its emphasis on local collaboration. The company has made it a priority to engage Bahrain’s domestic supply chain and work closely with local contractors and vendors. This not only accelerates project execution but also strengthens the national economy.
The initiative is expected to create new employment opportunities for Bahraini professionals, technicians, and laborers. In addition, local engineering firms, material suppliers, and logistics companies are anticipated to benefit from increased demand during the construction and development phases.
Petrofac’s strategy includes knowledge transfer programs and training initiatives designed to develop local talent in the energy and engineering sectors. This approach supports Bahrain’s vision of building a skilled workforce that can manage future energy projects independently.
A Technically Challenging Yet Crucial Project
The new scope of work presents both challenges and opportunities. Developing hook-ups and tie-ins across active gas fields involves precise coordination, careful planning, and state-of-the-art safety practices. Petrofac is known for its ability to execute technically demanding projects, often in harsh or complex environments.
With Bahrain’s energy infrastructure aging in certain areas, modernizing key components while maintaining uninterrupted supply is a task that demands efficiency and precision. Petrofac’s proven track record in delivering integrated energy projects in the Middle East gives stakeholders confidence that this initiative will be delivered successfully.
The project timeline of two years underscores the urgency of bringing new gas resources online to meet immediate energy demands while laying the foundation for future expansion.
Bapco Upstream’s Strategic Role
Bapco Upstream, a fully owned subsidiary of the state-run Bapco Energies (formerly nogaholding), is central to Bahrain’s upstream oil and gas development. The company focuses on optimizing hydrocarbon production through enhanced recovery technologies, new well development, and efficient resource management.
Through partnerships like this one with Petrofac, Bapco Upstream is aiming to improve the sustainability of Bahrain’s energy sector by increasing gas supply while managing environmental impact and ensuring long-term operational efficiency.
The company’s transformation over the past few years—including its rebranding and modernization strategy—is part of a wider movement across the Gulf region to make energy sectors leaner, greener, and more technologically advanced.
A Step Toward a Sustainable Future
This latest contract between Petrofac and Bapco Upstream signals a strong commitment to building an energy system that is both modern and reliable. It also reflects Bahrain’s broader ambition to be recognized as a hub for sustainable industrial growth in the Gulf.
As the world shifts toward cleaner and more efficient energy systems, natural gas is considered a bridge fuel that supports both energy security and environmental goals. It produces less carbon dioxide than oil or coal and can be integrated with renewable sources to form a more balanced energy mix.
By investing in domestic gas development, Bahrain is positioning itself to better manage global energy price fluctuations, reduce import dependency, and support economic diversification in a competitive regional landscape.
Looking Ahead
The successful delivery of this contract could pave the way for future collaboration between Petrofac and Bahrain’s energy sector. As the Kingdom continues to advance its infrastructure and pursue energy independence, partnerships with experienced international firms will remain a cornerstone of progress.
For Petrofac, this award not only strengthens its presence in the region but also reaffirms its position as a trusted partner in global energy transformation. The company’s ability to deliver complex, fast-track projects in collaboration with local entities aligns well with the evolving needs of countries like Bahrain that are investing in long-term sustainable growth.
As Bahrain accelerates toward its Vision 2030 goals, projects like this represent more than just construction work—they are the foundation of a new chapter in the Kingdom’s energy journey.
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