Bahrain announces discovery of 80 bln barrels of oil
MANAMA: Bahrain announced its newly discovered shale oil reserve was estimated to contain more than 80 billion barrels, making the once-marginal oil producer potentially a major player in the market.
The amount of recoverable oil – or oil that can be extracted – is still under study, Oil Minister Sheikh Mohammed bin Khalifa Al-Khalifa told a press conference in Manama.
The field covers 2,000 square kilometres (772 square miles) in shallow waters off the kingdom’s west coast, which faces oil giant Saudi Arabia.
The new field would in theory dwarf the Bahrain Field, the country’s only other oil field, which contains several hundred million barrels.
The actual impact of the discovery is contingent on how much of it is actually extractable.
Yahya al-Ansari, exploration manager at Bahrain’s national oil company Bapco, said that the pumping of oil from the field is not expected for at least five years.
Speaking to reporters after Wednesday’s press conference, Ansari said Bahraini authorities, in cooperation with international oil companies, were trying to establish how much oil can be extracted.
“What we have announced is oil in place ... So far, we don’t know how much of it can be extracted and the cost of its production,” two important elements that could determine whether the major announcement is viable.
“The US shale oil industry normally extracts 5-10 per cent of the known shale oil reserves and raising this per centage depends on the advancement of technology,” Ansari said.
The Bahraini minister and Ansari refused to be drawn into providing details about how much production Bahrain is likely to have in five years.
Shale oil production is a costly business and is far more expensive than conventional oil. In some cases, high cost makes production commercially not possible.
International consultants DeGolyer and MacNaughton, Halliburton, and Schlumberger are heading the project with Bahrain’s National Oil and Gas Authority. — AFP