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FINANCIAL NEWS
Saudi, Bahrian sign USD300m contracts for new pipeline
19 Sep 2015
(MENAFN) Saudi Arabia and Bahrain have signed contracts worth around USD300 million to lay a new 350,000-barrel per day (bpd) oil pipeline between the two countries, with the link due to be operational in 2018.
Bahrain relies on output from the Abu Safa oil field that it shares with Saudi Arabia for the vast majority of its oil and the new pipeline will replace an ageing 230,000 bpd link.
Eventually the new pipeline’s capacity could be increased to 400,000 bpd, Abdul-Hussain bin Ali Mirza said at a signing event in Manama, Bahrain’s Energy Minister said.
“It will be finished by the end of 2017 or early 2018 and then there will be a six-month trial period for the new pipeline,” he said, adding that the old pipeline was likely to be removed from service in the second half of 2018.
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