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His Majesty King Hamad bin Isa Al Khalifa

The King of the Kingdom of BahrainHis Royal HighnessPrince Khalifa bin Salman Al Khalifa

The Prime Minister

His Royal Highness Prince Salman bin Hamad Al KhalifaThe Crown Prince & Deputy Supreme

Commander

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Introduction by H.E.The Minister of Energy ...................................................

Oil & Gas Sector Organization Chart .......................................................

National Oil & Gas Authority (NOGA) ....................................................

nogaholding ..................................................................................................

Bahrain Petroleum Company (BAPCO) ..................................................

Bahrain National Gas Company (BANAGAS) .......................................

Bahrain National Gas Expanstion Company ..........................................

Gulf Petrochemical Industries Company (GPIC) .....................................

Bahrain Aviation Fuelling Co. (BAFCO) ..................................................

Bahrain Lube Base Oil Co. .........................................................................

Tatweer Petroleum Co. ................................................................................

Skaugen Gulf Petchem Carriers Co. .........................................................

Oil & Gas Statistics .....................................................................................

Oil & Gas Agreements ................................................................................

Bahrain and Organization of Arab Petroleum Exporting Countries (OAPEC)

Bahrain and Organisation of Petroleum Exporting Countries (OPEC)

Bahrain and the International Energy Forum .........................................

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Introduction

I am pleased to present as a reference document the Oil & Gas Facts and Figures 2012 booklet, which is promptly released by the National Oil and Gas Authority (NOGA) every two years. The publication sheds light on the oil and gas industry in the Kingdom of Bahrain, incorporating the various achievements, programmes and projects, and showcasing the efforts of the NOGA officials in the advancement of this vitalsector, which contributes substantially to the national economy.This booklet has outlined, through its pages, the numerous achievements and developments in the oil and gas industry in the Kingdom, including investment plans and offshore Exploration and Production Sharing Agreements (EPSA) and projects aimed to develop the Bahrain Oil Field. It also contains oil statistics, existing relations of cooperation between the Kingdom of Bahrain and oil organizations, including members of the Organization of Arab Petroleum Exporting Countries (OAPEC) and other oil companies affiliated to it. The Kingdom of Bahrain had the honourof chairing the 2011 OAPEC Ministerial Council and its Executive Officesession.The achievements listed in the booklet are testimony of the progress and advancement witnessed in the prosperous era of His Majesty King Hamad bin Isa Al Khalifa, the efficient government under Prime MinisterHis Royal Highness Prince Khalifa bin Salman Al Khalifa and the many initiatives of His Royal Highness Prince Salman bin Hamad Al Khalifa, the Crown Prince and Deputy Supreme Commander. It is also a token of appreciation for the guidance and constant support of the wise leadership to the progress and development of this sector.The outstanding achievements in the oil and gas projects is also due to the efforts of the NOGA Board of Directors and all employees working in the sector, who have an important role in supporting the economy and advancement of our Kingdom, under the foresight of the dedicated leadership.

Dr. Abdul Hussain bin Ali Mirza Minister of Energy

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National Oil and Gas Authority

The National Oil and Gas Authority (NOGA) was established in September 2005 to be in charge of the organization, supervision and development functions of the oil and gas industry and related industries in the Kingdom of Bahrain.

NOGA is committed to realization of the 2030 economic vision of the Kingdom of Bahrain and the Authority has formulated its strategic plan for the future years in conformity with this vision.

NOGA vision seeks to make it the pioneering agency for meeting the oil and gas requirements needed for the economic growth and upgrading the standards of living. Raising the standards of living is the target that the wise political leadership is striving to achieve. Making available the necessary resources for economic growth is the main vehicle for attaining this important objective.

The strategic initiatives established by the Authority are intended to achieve the following strategic objectives:* Meeting the ever growing demand for energy in the Kingdom.* Creation of an incubator for skilled workforce and expertise in the oil and

gas in the Kingdom.* Diversification and development of businesses related to the oil and gas

industry.* Attaining excellence in the operation and businesses.

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In order to keep pace with the international changes, re-establish the efficacyof the oil sector and maximize benefit from the available opportunities in thelight of globalization and prevailing international economic openness, the wise political leadership of the Kingdom decided to reorganize and restructure this vital sector by the establishment of the National Oil and Gas Authority under Royal Decree No. 63 for the year 2005, which was promulgated on 26 September 2005, to replace three oil authorities, namely the Supreme council for Oil, the Natural Gas Committee and the Ministry of Oil, and to directly assume the duties and functions of these authorities.

The promulgation by His Majesty King Hamad bin Isa Al Khalifa, King of the Kingdom of Bahrain, of Royal Decree No. 63 for the year 2005 constitutes an important turning point in the history of oil in the Kingdom of Bahrain, whereby the responsibilities for the oil sector were identified and concentratedin one authority, the National Oil and Gas Authority, which is tasked with the supervisory and regularity duties of the oil and gas sector, conservation of the Kingdom’s oil and gas natural resources, and creation of alternatives in line with international developments.

The vision has been formulated to enable the Authority to be the pioneering authority in meeting the oil and gas requirements for sustained economic growth and enhancement of the standard of living.

In order to implement the tasks and functions assigned to it, the Authority has charted for itself pivotal values that reflect transparency, integrity, respect,fairness, creativity, professional competence and teamwork.

The purpose of the Royal Decree was to reorganize and streamline the oil and gas sector in the Kingdom of Bahrain with a view to attaining the highest standards of efficiency and productivity.

During the first year of its inception, the Authority’s endeavour focused on thedevelopment of the main laws and legislations which regulate its functions and the operations of its subsectors concerned with the Kingdom’s oil and gas issues, coupled with coordination with many international specialized companies for the development of the oil sector. The Authority’s second year was characterized by several achievements, involving exploration and production sharing agreements with international oil companies. offshore Blocks 3 and 4 agreement was awarded to Occidental Company of USA, while

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Block 2 tenders were awarded to PTTEP of Thailand. Furthermore, in the same year H.R.H. the Prime Minister inaugurated the low sulphur diesel complex which is considered one of the most important projects for the modernization and upgrade of the Refinery. This coincided with the Kingdom’s celebrationswhich marked the 75th anniversary of the oil discovery in the Kingdom of Bahrain, in addition to the formation of nogaholding.

The third year witnessed the completion of several regulatory legislations involving institutional development and introduction of adjustments in the prices of petroleum products. These adjustments were designed to conserve the Kingdom’s resources and fortify the national economy. The same year witnessed the implementation of a succession plan involving replacement of senior leaderships positions and empowerment of women so that they may assume leading positions in tandem with the structure of the oil and gas sector. Similarly, the deep gas exploration project was promoted and 20 companies expressed desire to file proposals in addition to the announcementof Bahrain Field Development project (one of the oldest fields in the regionwhere production started in 1932).

The development process is intended to promote the field’s yield andmaximize its production. During the same year, the first investment fornogaholding was made, involving taking a share in the lubricating base oil production project at a total cost of more than 400 million US dollars. The fourth year, i.e. 2009, was marked by the promulgation of Law No. 24 which provides for approval of the exploration and production sharing agreement for development of Bahrain Field, as well as issuance of Law No. 6 on the exploration and production sharing agreement for offshore Block No. 1 between Bahrain and Occidental , apart from the formation of Bahrain Lubricating Base Oil Company, a joint venture in which the Government has a 55% equity and NESTE Oil Company of Finland a 45% share, in addition to the establishment of the Petroleum Development Company (TATWEER PETROLEUM) between Occidental Company, MUBADALA of the United Arab Emirates and nogaholding for the development of Bahrain Field and where Bahrain’s participation, represented by the Oil and Gas Holding Company, amounts to 51% of the company nominal capital.

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In its fifth year, the initiative of Minister of Energy resulted in a major event in the oil scene when H.R.H Prince Salman bin Hamad Al Khalifa, the Crown Prince and Deputy Supreme Commander as well as the President of the Economic Development Board launched Tatweer Petroleum Company in Jebel Dukhan near Well No. (1) in January 2010, unveiling the memorial plaque to mark the occasion. The first exploration oil well by Tatweer was launched in May.

The year also saw call for proposals for the deep gas project from international oil companies in order to increase gas production for industrial use. This year witnessed more cooperation between NOGA and the Supreme Council for Women (SCW). H.R.H Princess Sabika bint Ibrahim Al Khalifa, Head of Supreme Council for Women, opened the Princess Sabeeka Park in (GPIC) and Princess Sabeeka Park in (BAPCO) in Awali. These reflect theinterest of H.R.H. in environment and her keenness to encourage Bahraini women employed in the sector. NOGA also announced the implementation of the provisions of the (MoU) signed between the NoGA and the SCW in 2008 within the framework of the United Nations Convention on the Elimination of

All Forms of Discrimination against Women (CEDAW-1979). NOGA abolished the distinction in the disbursement of social allowance among workers.The year saw the launch of the Sulphur Pellets Production Project as part of the Refinery modernizationprogramme of BAPCO, the pilot Carbon dioxide Recovery Plant of the GPIC as well as the signing of $120 million financial assistance tothe Bahrain Lube Base Oil Project. Another important event was the signing of a $95 million deal for the installation of steam turbine generators in Bahrain Lube Oil Company (BLOC) with French company Technip.

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In line with the Authority’s strategy in favour of alternative energy, a wind power project is being implemented in BAPCO in association with a Japanese company. An energy cooperation agreement is also in place between NOGA and (UNDP) to study the feasibility of establishing an energy center for the planning of energy sources in the country. This year, among the 12 initiatives launched by NOGA for conservation and optimal utilization of the nation’s natural resources are the projects to remove sulfur from the gas refinery. The $151 million project is implementedby BAPCO in cooperation with the Public Commission for the Protection of Marine Resources, Environment and Wildlife to promote environmental health within the company and its surroundings. In addition, the year also saw the first shipment of high-quality diesel toSingapore, contributing to the reputation of the company and its products on a global level and increasing national income.

The sixth year saw major international participation by the Kingdom of Bahrain with a significant presencein oil events, attended by H.E. The Minister of Energy attended a Special Ministerial Meeting of the International Energy Forum in Riyadh on February 22, 2011, held to ratify the finaldocument of the forum to continue its role in promoting dialogue between producers, consumers and promote cooperation between stakeholders in the energy industry.

This year, NOGA was awarded quality certificate ISO 2008:9001 issued byDNV Company in recognition of its commitment to implement international standards in all departments.

Also this year, the Prime Minister H.R.H Prince Khalifa bin Salman Al Khalifa inaugurated the ship ‘Vision Bahrain’ on November 14, 2011, a project with Skaugen Gulf Petchem Carriers (SGPC), H.R.H the Prime Minister also launched a Lube Base Oil Project on November 29, 2011.

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nogaholding

nogaholding was established by Royal Decree No. 77 of 2007, promulgated on August 15, 2007. The company is the investment and development arm of the National Oil & Gas Authority (NOGA) and plays a fundamental role in the execution of the strategic plans of the Authority and stewardship of the government’s investment in 8 Companies: Bahrain Petroleum Company (Bapco), The Bahrain National Gas Company (Banagas), The Bahrain National Gas Expansion Co., The Bahrain Aviation Fuelling Company (Bafco), The Gulf Petrochemical Industries Company (GPIC), Bahrain Lube Base Oil Company (BLBOC), Tatweer Petroleum and Skaugen Gulf Petchem Carriers Company (SGPC).

nogaholding is a business focused company that aims to create shareholder value by the successful management and growth of a portfolio of the Government of the Kingdom of Bahrain’s shareholdings in oil, gas and petrochemical assets. nogaholding creates value from existing portfolio companies and by enlarging the portfolio. At the time the company was formed in 2007 the portfolio comprised 4 companies, In 2008 , one more company was established wholly owned by nogaholding which is the Bahrain National Gas Expansion Company. 2009 saw the addition of two partly owned joint ventures Tatweer Petroleum and BLBOC. In 2010, SGPC a partly owned (35% share) joint venture joined entered the nogaholding portfolio family.

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The Bahrain Petroleum Company (BAPCO)

BAPCO is a unique company, which has never stood still. The first todiscover oil in the Arabian peninsula in 1932, it started exporting in 1934, and refining in 1936. Since then the company has helped shapethe modern Kingdom of Bahrain, not simply through the generation of wealth, but also through the development of Bahrain’s manpower. Many of this highly skilled and sought-after elite now occupy senior positions in Government and industry.

More than 80 years after the company’s establishment the adventure continues with new ambitions in exploration, new initiatives in oil and gas field development, and new global markets opening up with thecompletion of the refinery’s US$725m Low Sulphur Diesel Plant. Thecompany can now export ultra low sulphur diesel to those countries with the most stringent environmental standards.

Energising The Nation

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Environmental protection plays as an important part in the company’s US$1 billion+ investment programme and with the commissioning of the US$151 million Refinery Gas Desulphurisation Plant (RGDP) , theair quality was further improved.

Bapco (CLOSED COMPANY)BAPCO, wholly owned by the Government of Bahrain, is engaged in the oil industry including refining, distribution of petroleumproducts and natural gas, sales and exports of crude oil and refinedproducts.

The company owns a 260,000 barrel-a-day refinery, storage facilitiesfor more than 14 million barrels, a marketing terminal, and a marine terminal for its petroleum products. 90% of refined products areexported. BAPCO’s prime customers for crude oil and refined productsare based in the Middle East, India, the Far East, South East Asia and Africa.

REFININGThe Bahrain Refinery - one of thelargest in the Middle East and the oldest in the GCC - refinesover 260,000 barrels of crude every day. About one-sixth of this crude originates from the Bahrain Field, the remainder is received from Saudi Arabia in pipelines extending 27 km over land and a further 27 km under the sea .

STORAGEThere are more than 170 storage tanks at different sites with a total capacity of over 14 million barrels.

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PRODUCTSLPG Naphtha, Gasoline, Kerosene, Aviation Turbine Fuel, Ultra Low Sulphur Diesel, Heavy Lube Distillate, Fuel Oil and Asphalt.

MARKETINGBAPCO exports crude oil to world markets and sells petroleum products locally and internationally. It also supplies and sells aviation fuel at the Bahrain International Airport through its affiliate, TheBafco, in which the company is a 60% shareholder. The company also provides the full requirements of natural gas to the power generating plants and other industries in the country.

TRAINING AND DEVELOPMENTBAPCO is pressing ahead with its ambitious human resource management programme to ensure that the skills of its workforce match the technological and business demands of the future. In addition, its scholarship and sponsorship programmes support more than 300 students in higher education in Bahrain and abroad.

ENVIRONMENT, HEALTH & SAFETYProtection of the environment continues to be a major focus of the company’s policy. In line with best practice, BAPCO has created an EHS policy that integrates the functions of Occupational Health, Industrial Safety and Environment. A founder member of the Regional Clean Sea Organisation (RECSO), the company remains at the forefront of technical expertise in oil spill response. A clearly set out policy, a range of protective clothing and equipment, full training and strict

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monitoring form BAPCO’s ongoing commitment to the prevention and control of accidents and emergencies. The company has worked up to 12 million employeehours without lost-time accident. Glimpses of recent and future Bapco projects & programmes:

OPENING OF GAS DELIVERY SYSTEM TO AL DUR POWER PLANTUnder the patronage of H.E. Minister of Energy, a ceremony was held on Wednesday September 14, 2011, to mark the official openingof Bapco’s Gas Delivery System to Al-Dur Power Plant. The project is envisaged as one of the most important and largest industrial projects being implemented at the moment in the Kingdom to serve the southern area of Bahrain and particularly Al-Dur Power Plant. The ceremony is also in line with Bapco’s strategies aimed to enhance the oil and gas sector and cater for the growing demand for energy in the future. Bapco which operates an integrated high pressure natural gas network extending from the farthest southern Bahrain field to all gasconsumers extended up to the northern part of Bahrain, and being a government entity, undertook the responsibility and challenge of constructing gas distribution facilities and a 13.5 kilometer long 20 inch gas pipeline, in record time to supply more than one billion cubic feet per day of gas to Al-Dur Power Plant as well as future power stations at the area in a cost of US $ 26 million.

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SULPHUR HANDLING FACILITIES PROJECT (SHFP)The Sulphur Handling Facilities (SHF) project was implemented in 2007 as part of Bapco’s Strategic Investment Programme to handle increased liquid sulphur production from 230MT/day to 500MT/day post Low Sulphur Diesel Production (LSDP) and Refinery Gas DesulphurisationPlant (RGDP) Projects. These new facilities produce premium quality pelletised sulphur that conforms to needs of a rapidly growing & competitive market. The new Sulphur Handling Facilities have enabled Bapco to replace its aging pelletiser plant that was at the end of its service life. The modernisation and replacement of such facilities that no longer meet Environment, Health and Safety (EHS) regulations is reflective of Bapco’s strong commitment to preserving the worldin which we live for future generations. The project has been implemented on a fast track basis at a total cost of US$37.5 million. In addition to contributing to the conservation of the environment, the project has brought in expected returns on investment since commissioning due to enhanced unit reliability, low operational costs and favourable market prices.

WASTE WATER TREATMENT PLANT PROJECT (WWTPP)Bapco, as part of its commitment to environment conservation, is implementing the construction of a new Waste Water Treatment Plant (WWTP) at a total cost of US$120 M. This project is being executed under Bapco’s Environmental Strategic Plan and as a requirement of the General Directorate of Environment and Wildlife Protectorate (EWP). Also, the syndicate funding Bapco’s Strategic Investment Programme (SIP) required implementation of this environmental project The new plant will provide secondary treatment to the Refinery wastewater that is received from the existing primary treatment facility (which consists of oil separators followed by Induced Air Flotation

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units). Currently the effluent from primary treatment facilities meets EWP requirements after dilution with large cooling water streams of the Refinery. However, with the new EWP regulations in place,Bapco would like to meet treated effluent discharge standards at thesource itself. The new WWTP is based on a state-ofthe- art 4-stage membrane bioreactor technology and for its size, it will be a first ofits kind in any Refinery waste water treatment plant worldwide.

SUCCESSFUL MIGRATION OF IN-LINE BLENDING DISTRIBUTED CONTROL AND OIL MOVEMENT SYSTEMSPC&I has successfully upgraded the ‘obsolete first-release’ ofYokogawa’s Windows-NT based Centum-CS Distributed Control System (DCS) and Unix based Oil Movement System in the RefineryTank Farm Control Building. This consisted of upgrading the consoles to the latest Yokogawa DCS - Centum VP based CS3000 and Windows 2008 Server – Enterprise Edition based Oil Movement System.The project was completed as per the schedule and within the approved 3 million US$ budget. The project scope involved the installation of new CS3000 Consoles in the Control Room, replacement of redundant Central Processing Units (CPU) along with new Oil Movement Servers in the Refinery

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Tank Farm Control Building and ROP Office. Taking advantages ofthe advanced features of the CS3000 DCS, the process graphics and system parameters were also enhanced to provide the operators with up-to-date information for the smooth running of their day to day operations.

HISTORICAL MILESTONES

1929 BAPCO established by Standard Oil Company of California.1932 First oil discovery in the Arabian Gulf.1934 First shipment of crude oil.1936 The Bahrain Refinery - with a capacity of 10,000 barrels per day - opened.1945 A-B pipeline laid between Bahrain and Saudi Arabia; then the

world’s longest commercial submarine pipeline1948 Discovery of natural gas1968 Bahrain Refinery expansion programme completed with 250,000

barrel-a-day capacity1976 Incorporation of the Bahrain National Oil Company (BANOCO)1980 Establishment of Supreme Council for Oil under the

chairmanship of H.R.H , the Prime Minister1980 The Petroleum Marketing Unit is set up in the Ministry

of Development & Industry with the aim of marketing the Government’s 60% share of products from the Bahrain Refinery.

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1981 BAPCO reconstituted as a joint venture refining companyowned 60% by the Bahrain Government and 40% by Caltex.

1982 BANOCO assumes full and direct responsibility for production of oil and gas from Bahrain field

1985 Incorporation of Bahrain Aviation Fuel Company (BAFCO) in which BANOCO shares 60%, Caltex 27% and BP 13%

1992 Inauguration of Dar An-Naft (oil meusum) in line with 60 years of oil discovery

1994 The Bahrain Refinery awarded ISO 9002 Certification fromBritish Standards Institution (BSi)

1997 The Bahrain Government assumes 100% ownership of the Bahrain Refinery

1999 The new BAPCO is formed following the merger between The Bahrain Petroleum Company B.S.C. and The Bahrain National Oil Company

2000 Start of petroleum products in-line blending and introduction of unleaded gasoline to the local market

2001 Kerosene Merox units commissioned as part of the RefineryModernisation Plan

2002 Launch of new Bapco Strategic Direction2004 Contract signed to execute Low Sulphur Diesel Production

Project2005 US$1.1 billion finance secured for investment programme2007 Start-up of Ultra Low Sulphur Diesel Complex in line with 75

years of oil discovery2009 Bapco achieves EMS ISO 14001 certification

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The Bahrain National Gas Company (Banagas) is 75% owned by nogaholding, 12.5% by Chevron Bahrain and 12.5% by Boubyan Petrochemical Company, a Kuwaiti company listed on the Kuwait Stock Exchange, who acquired the Arab Petroleum Investment Corporation (APICORP) shares in September 2011. The primary objective of the Company is processing associated gas into marketable products, propane, butane and naphtha, and supplying residue gas for local industrial use and providing employment and training opportunities to Bahraini nationals.

The initial facilities, a processing train, four compressor stations and storage facilities at Sitra, were officially inaugurated on 17th December1979 and the first shipment of product made in early 1980. Propane,butane and naphtha are exported worldwide while the residue gas, mainly Methane and Ethane, is routed to Aluminum Bahrain, the Bapco refineryand the Riffa power station. Due to a substantial increase in the quantity of associated gas extracted from the Bahrain Oil Field during subsequent years, an Expansion Project was launched in 1988 to upgrade plant processing capacity from 170 to 280 MMSCFD. The Project, which was implemented by the Government of Bahrain as a sole venture, involved construction of two additional compressor stations and a new processing

The Bahrain National Gas Company (BANAGAS)

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train at the Central Gas Plant. The Project was commissioned in October 1990.

In 2003, another compressor station was constructed as part of the Project to process additional quantities of associated gas, as well as propane and butane-rich refinery off gas under an agreement with theBahrain Petroleum Company. The Bahrain National Gas Expansion was incorporated in 2008 when the Expansion Project was converted into an independent company, wholly owned by nogaholding. Banagas operates and manages the expansion. The Company has been able to achieve its target of maintaining high standards of occupational safety and health through regular training and participation of all the workforce in promoting safety awareness. In addition, adequate procedures have been

introduced to ensure strict adherence to stringent safety rules in order to safeguard life and property. The Company’s outstanding safety record has been internationally recognized by such renown organizations as the Royal Society for the Prevention of Accidents, the Gas Processors Association of America, the National Safety Council and the

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British Safety Council. In 2011 Banagas was awarded OHSAS 18001:2007 certification,the internationally accepted Standard for occupational health and safety management. In 1994 the Company was certifies by the BritishStandards Institute to ISO 9002. In 2003 the Company was certifiedto the new standard BS EN ISO 9001:2000.All aspects of the company’s operations are included under the scope of registration. As part of its social responsibility to the community, the Company is also a major supporter of the country’s cultural, social and sports activities such as “Bahrain First” ceremony and Banagas Desert Plants Garden. In 2012 Banagas was awarded ISO 14001:2004 certificationfor environmental Management System.

When the Company first started operationsBahraini personnel represented 48% of the total workforce. However, in line with the Company’s policy to create an efficientand highly skilled national workforce, vigorous development and training programmes were implemented. At present the Bahraini workforce exceeds 90% of the total workforce. The Company provides a wide range benefits

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to employees, including interest-free loans, medical assistance, life insurance, a saving plan, medical insurance as well as helping employees to join local clubs and participate in social and sports activities.

BANAGAS was also a proud winner of the Prime Minister’s Award for Excellence in Industry in 1999. Strict criteria were used for granting this Award including productivity, export, industrial safety and community support. Consistently high levels of production have enabled substantial annual contributions to be made to the Kingdom’s revenue. Combined with an outstanding occupational safety record which has received international recognition has made BANAGAS one of the most successful of the many projects implemented by the Government of the Kingdom of Bahrain in its determined drive for growth and prosperity for all the people of Bahrain.

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The government of the Kingdom of Bahrain initiated a major expansion project in the Bahrain National Gas Company (BANAGAS) in 1988, by setting up the Bahrain National Gas Expansion Company (BNGEC). The new company, commissioned in 1990, was tasked with the objective of raising the gas production capacity from 170 million cubic feet to 280 million cubic feet per day. The project included the establishment of two new plants, a gas extraction facility for LPG and naphtha and a cooling unit in the storage area for pasteurization, the government bearing the full cost. The National Oil and Gas Authority (NOGA), since its establishment in 2005, has been applying modern management tools to update and restructure of the oil and gas sector in the Kingdom of Bahrain. The BANAGAS expansion project document was signed in 2008, which designed BNGEC as a joint stock company owned by the Bahrain government with a BD45 million capital. The administrative and regulatory terms of BANAGAS currently apply to BNGEC operations, as per the agreement between the two companies.

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Gulf Petrochemical Industries Company

Gulf Petrochemical Industries Company was founded on 5th December 1979 as a nucleus for cooperation among Gulf Cooperative Council member states for the manufacture of fertilizers and petrochemicals by utilizing Bahraini natural gas as feedstock. The joint venture is equally owned by the Government of the Kingdom of Bahrain ; Saudi Basic Industries Corporation, Saudi Arabia; and Petrochemical Industries Company, Kuwait. The Company’s Board of Directors comprises of representatives from the three shareholders. Built on 60 acres of reclaimed land on Sitra Island, the project initially consisted of two Plants: Ammonia and Methanol together with their utilities.

The plants were commissioned in May 1985, each with a capacity of 1,000 metric tones per day. In 1989, their capacities were increased to 1200 tonnes each per day. Due to its success in production and marketing of the products and to capitalize further on the Ammonia, GPIC decided to expand its operations and built a 1,700 metric tones per day Urea Plant that was commissioned in 1998. This plant included its own utilities and Urea handling facilities to export finest quality Granular Urea worldwide. GPIC continues to produce andsupply the world with more than 1.46 million tones per annum of high quality products.GPIC prides itself with its excellent record in safety, continuous production runs and environmental achievements. The Company has won numerous awards, prizes and appreciation certificates locally, regionally andinternationally. Through its distinguished environmental projects, the Company has proved that industry and the environment can harmoniously exist side by

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side. GPIC looks to the future as a distinguished producer and exporter of quality petrochemical and fertilizer products to the whole world. To maintain this unique status, considerable effort and investment has been made to upgrade major plant equipment and modernize control and management systems at the complex. Plans for expansion are also well under way to construct new mega scale ammonia and urea plants in the coming years.

Management Approach: The “One Team” Concept

GPIC is proud of its employees and considers them as the most important assets of the company. Whilst the executive management sets the vision, goals, objectives and policies of the company, these elements are discussed and explained to all levels and posted at key locations. The management team also regularly publishes statistics that reflect the Company’s progress to allstaff, electronically and on notice boards. The one team spirit is propagated throughout the organization on a daily basis through coordination meetings, social activities inside and outside the complex and special functions.

The Management has also formed a number of committees such as the Safety Committee, Health Committee, Environment Committee, Training Development & Mentoring Committee, Social Activities Committee, Suggestions & Best Practices Committee, Innovation & Patent Committee, Process Safety Management Committee to name a few. All these committees work together with each other to achieve the objectives set forth by the management of the company.

The GPIC leadership is fully committed in its endeavors to synthesize the best from world health, safety, security and social responsibility standards to build a truly robust risk management regime. The company’s management systems are fully certified to ISO-9001 quality standard, ISO-14001 environmentalstandard, the Occupational Health and Safety Management System’s OHSAS-18001 standard and the Responsible Care Standard 14001. The company has also acquired the ISO-27001 certification for its Information TechnologySecurity Management System. In addition to the above the company has also complied with and fulfilled all the requirements of the non-certifiable BahrainCorporate Governance Code, ISO 26000 Social Responsibility and Process Safety Management Guidelines.

GPIC is also the first petrochemical company in the Arabian Gulf to successfullycomplete all the requirements and gain accreditation by the British Standard Institute BSI for the PAS-99 (Publicly Available Specification) model, the world’sfirst Integrated Management System.

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Training and Development :

GPIC is proud of its employees and considers them as the most important assets of the company. Therefore, training and developing them is considered as a top priority and a substantial amount of money has been invested in the Bahrainisation and employee development programs since inception, including the lean years when company’s financial resources were limited. The percentage of Bahrainis in the company is currently in excess of 95% and this percentage is rising annually. Since inception a considerable number of Bahraini personnel have been trained to take up permanent senior positions in the company’s organization. In addition, the GPIC Academy of Leadership and Learning arranges a large number of development courses every year to ensure a well-educated workforce which is able to meet the rigorous demands of the dynamic international petrochemical industry. At GPIC in-house training is complimented by the use of local and international institutions, together with company sponsorship of staff in local and overseas universities.

Number of Trainees Annual Average

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The Academy of Leadership and Learning (ALL) at GPIC has state of the art facilities to train its employees and keep them abreast of the latest developments in the field of petrochemicals. There is a top class theatre hall, a central library,plant models, training simulators, audio visual centre, class rooms and the more recently inaugurated E-learning centre which is the first of its kind in theentire Arabian Gulf region. In May 2009 GPIC won the Labour Ministry Award for being the first enterprise to be exempted from the occupational trainingsubscription fees owing to its outstanding record in training and development of human resources in 2008. In 2009 the Company won the Award of the Best Company in Using E-Learning Solutions in the Middle East. In May 2010 GPIC won the Labour Ministry Award for being the first enterprise to be exemptedfrom the occupational training subscription fees owing to its outstanding record in training and development of human resources in 2009 for the second year in a row.In November 2010 GPIC won the Award of the Outstanding Gulf Company in the Localisation of Jobs and Development of Manpower by the GCC Labour Ministers Council for the second time. In 2011 GPIC won the Best Learning Life Cycle Management Award from Skill Soft, a leading company in the field of e-learning in the Middle East. The company is strongly committedand believes in equal employment opportunities for both men and women. The steps taken by the company in this regards are highlighted by the rising numbers of women employees on the company payrolls every year.

Safety and Health

Safety assumes special importance in the petrochemicals industry due to the nature of processes that employ flammable gases, high pressures, electrical risks and thepresence of high-speed machines. For this purpose, GPIC employs a stringent risk management policy that has resulted in achieving more than 14 million hours without any lost-time accidents. GPIC’s record of achievements in safety is outstanding by all standards. The Company has won eight consecutive golden awards from the Royal Society for the Prevention of Accident (RoSPA) U.K. In 2001, GPIC won the international sector award for the petrochemical industry from RoSPA. These achievements were further complemented when GPIC won the prestigious Sir George Earle Trophy from RoSPA in 2005, which is awarded to an organization for the most outstanding Performance in Occupational Safety and Health worldwide. It is notable that GPIC has become the first organization outside Europe and North America tobe awarded with this prestigious Trophy. In the final round of this award, GPICcompeted with international giants such as Shell, Toyota and General Electric. In 2008, GPIC was awarded the Robert Campbell Safety Award from the National Safety Council, USA in recognition for the company’s strict adherence to and constant developments of its occupational health and safety systems. The company also won the highly acclaimed International Safety award from the British Safety Council in addition to the 2008 Excellence Award in Chemical Sector for Occupational Health and Safety from the Royal Society for the

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Prevention of Accidents (RoSPA) UK. GPIC Complex is supported by a modern health centre managed by an experienced doctor, assisted by qualified nurses and equippedwith the state of the art medical equipment. The centre provides its services 24 hours a day throughout the week.

These services include primary care, first aidand periodical checkups for all employees. In addition to the facilities provided at the Health Centre, since 2007 the company has introduced a comprehensive health insurance policy for not only the employees of GPIC but also their families and dependents. This facility provides for complete health coverage throughout Bahrain and world over for GPIC employees and their families. A large number of the company staff has also been trained as qualified first aiders to assist the health centre

when needed. Furthermore, the centre in coordination with the labour union regularly organizes blood donation campaigns to supplement reserves at the Blood Bank of the Ministry of Health. The Management has also appointed a Health Committee which regularly inspects the canteen premises and other food outlets at the complex to ensure that highest level of hygiene is maintained. The Committee also organizes a number of lectures annually to cover various health issues.

Environmental Protection:

Since its inception, GPIC has felt the need for maintaining an environmental balance. The project’s environmental impact was thoroughly examined and studied. All the necessary measures and steps were taken to maintain such a balance. Although more than 26 years have passed since the plants went on stream, all the plants are still operating according to the strictest local and international environmental standards. The Urea plant, which came into operation in 1998, was subjected to the same of environmental review at the design stage. GPIC insisted on installing a granulation process for the production of final solidproduct rather than the more conventional prilling process despite the higher cost of construction and

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licensing. The choice of this technology has paid off and has resulted in reduced emissions of urea dust. In 2007, The International Dilmun Award was launched. This environmental award is sponsored by GPIC as part of the Royal Society for the Prevention of Accidents (RoSPA) awards programme. The name ‘Dilmun’ was given to reflect the history of Bahrain and in recognition of GPIC’scommitment and contribution to safety, health and the environment In 2008, GPIC became one of the first Petrochemical companies in the Middle East toembark on the 450 tonnes/day Carbon Dioxide Recovery (CDR) Project. The project was initiated to cut down Green House Gas emissions and improve the overall efficiency of resources by having additional production of Methanoland Urea at its complex.

GPIC Environmental Projects:

1. Charity Garden: The company launched its environmental program by setting up a Charity Garden at the GPIC Complex. This garden was established to produce fruit and vegetables for donation to charities for the underprivileged. A small decorative garden next to the Administration building has been converted to a 1,500 m2 vegetable garden which produces all types of seasonal vegetables. These vegetables are distributed to needy families in the immediate vicinity of the complex after harvesting. To date this garden had produced in excess of 18 tones of vegetables for charity. Recently, fruit trees and date palms have also been added to enhance the output of the Charity Garden.To instill environmental responsibility into the hearts and minds of all employees, 16,000 m2 of land within the GPIC Complex has been dedicated for employees to plant their own trees. The result is a green oasis with 80% of the trees donated by the employees and the remaining 20% planted by dignitaries visiting GPIC premises. This project has raised the number of trees planted at the complex to more than 4,700.

2. Fish Farm: With the aim of demonstrating environmental accountability, setting a good example to other industries and replenishing dwindling fishreserves in regional waters, the company embarked on constructing a fishfarm close to the sea water outlet in November 1996. Different kinds of tropical fish found in Bahrain’s waters, like Black Sea Bream (Shim), Mullet (Meid) andRabbit fish (Saffee) are being reared and bred in the fish farm so that theirgrowth can take place in a congenial atmosphere. Later these fish are releasedinto the sea. GPIC management also ensures that some of the fish harvestedgo to charity.

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3. Bird Sanctuary: The evident improvement in the environment around GPIC has encouraged GPIC’s management to further enhance its special focus on the surroundings and especially Bahrain’s bird life. The bird sanctuary was commissioned on 9th September 2001 where a small nesting area and fresh pond have been created for the birds to enjoy a natural habitant with a view to improve the environment around the GPIC complex.

4. Herbal and Medicinal Plants Garden: To demonstrate the eco friendliness of its operations, GPIC has implemented a number of projects inside and outside its complex, the latest of which is the Herbal and Medical Plants Garden inaugurated on 9th May 2005 under the patronage of His Highness Shaikh Abdullah bin Hamad Al Khalifa, Governor of the Southern Governorate and Chairman of the Public Commission for the Protection of Marine Resources, Environment and Wildlife. Covering an area of 1200m2, this innovative project was launched with the prime objective of preserving indigenous herbs and plants that were once used by inhabitants to treat various illnesses. The garden currently encompasses 20 types of herbs and shrubs. This garden has also become a very useful platform for researchers, school students and dignitaries . These efforts have contributed greatly to GPIC winning several accolades including the GCC Environmental Award for the Best Establishment Adhering to Environmental Legislation.

5. H.R.H Princess Sabika bint Ibrahim Al Khalifa Aromatic Plants Garden: In March 2009 Her Royal Highness Princess Sabika bint Ibrahim Al Khalifa wife of His Majesty the King opened the Aromatic Plants Garden at the GPIC Complex bearing her name. This is a unique garden mainly designed to feature all the perfumed aromatic plants and herbs in the Kingdom. GPIC contribution to the National Economy

From the onset of production in 1985, GPIC has increased its profitability yearafter year and paid generous dividends to the shareholders.Local contractors and suppliers are also given priority to supply and carry out services, thus further invigorating the local economy. Moreover, GPIC also donates more than one

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million US Dollars annually to scientific research institutions,charities, cultural and sport activities. To complement all the above, GPIC also shares its experience with other organizations and institutions to modernize education, training, safety and environmental systems at the national level, enhancing further its support to the economy. The company is also well represented in the national teams, committees reviewing and developing safety, training, education and environmental legislation in the country.

Towards the Future

GPIC looks towards the future with confidence and fervor. The managementstrongly believes that their approach of a safe, reliable and profitable industrywhile at the same time taking responsible care of the environment at all times, is a practical and successful model that will ensure a healthy future for generations to come. GPIC has proven beyond doubt that a petrochemical industry can successfully co-exist with high profile environmental care. Newdevelopments and changes will come to the complex in the future but the company shall keep following the proven path of sustainable development to ensure maximum benefit for the Kingdom of Bahrain, the people and theenvironment.

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The aviation refueling service at Bahrain International Airport is provided by the Bahrain Aviation Fuelling Company (BAFCO) – a joint partnership formed in 1985. The Oil and Gas Holding Company (OGHC) is its main shareholder with a 60 %, while Chevron has a 27 % and BPME 13 % . BAFCO is responsible for all refuelling operations at Bahrain International Airport acting on behalf of its shareholders. However, OGHC, Chevron and BP each market and sell fuel to the individual airlines on their own behalf in separate sales operations.

BAFCO employs around 123 staff who work a three-shift system, catering for a 24-hour coverage. The company is particularly proud of the fact that the highly specialised nature of work involved is performed by 99 % of its staff are Bahrainis.

The grade of aviation fuel supplied by BAFCO is more commonly known as Jet A-1. This is produced to international specifications by the Bahrainrefinery, approximately 18 km from the airport. The fuel is then pumpedfrom the Sitra tanks through a dedicated pipeline to reception tanks at BAFCO’s tank farm at Arad.

Bahrain Aviation Fuelling Co. (BAFCO)

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In 1997 BAFCO was awarded the (ISO 9001) Quality Assurance Certificateby the British Standards Institute (BSI) and since then it has successfully continued to improve and is currently certified to the latest, 2008 edition.

From 1998, BAFCO has been recognized for its Operations Excellence with a total of 11 separate annual awards from Air BP or Chevron, with the most recent being presented in 2009 & 2010.

In 2007, the company was awarded the G.C. Council of Minister of Labour and Social Affairs Award for localization and Bahrainisation of jobs.

Aviation is a major element of international transport, and safety is a prime concern. Aircraft fuelling is a vital link in the system and to uphold aviation safety standards it is essential that aviation fuel is subjected to stringent quality control procedures and that the maintenance of equipment meets the highest possible levels.

The training and development of personnel in the professional execution of their duties is the key to a safe and efficient service. All BAFCOstaff are required to undergo regular refresher courses each year, regardless of their duties.

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Bahrain Lube Base Oil Company

Bahrain Lube Base Oil Company (BLBOC) is a joint venture company with three shareholders: nogaholding and Bapco owns 55% equity and Neste Oil Company of Finland with 45% equity. This was considered the first company of its kind in the region.The company was created in 2009 to build a US$ 430 million plant and associated export facilities at the Bapco Refinery, referredto as Lube Base Oil Project (LBOP). While Bapco operates and maintains the plant on behalf of JV, Neste Oil lifts and markets the products from this facility. This project is a strategic fit betweenthe joint venture partners enabling them to meet their long term objectives. BLBOC will manage and operate the joint venture through its partners nogaholding/Bapco and Neste Oil.

This project is in line with the directives of the Kingdom of Bahrain as part of the strategies of Vision 2030, and a landmark in latest technologies in industry. The project is one of the key strategic goals in Kingdom of Bahrain, as it is designed to produce up to 400,000 metric tons per year of Group III, Very High Viscosity Index (VHVI) Lubricant Base Oils. The Group III Lubricants Base Oil products, which will meet the next generation of lubricant

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performance and environmental standards, are in increasing demand in Europe and North America.The world scale facility was built under an Engineering, Procurement and Construction (EPC) contract by Samsung Engineering Company Ltd (SECL) of Korea.

The LBOP Project Inauguration Ceremony was organized on 29th November 2011 under the patronage of His Royal Highness, The Prime Minster Prince Khalifa Bin Salman Al-Khalifa. Product shipments to international markets have commenced.This project has created opportunities for development of local talent. Not only were several stationary equipment manufactured locally in Bahrain to the highest global standards, this project has resulted in providing job opportunities for national cadres. The project sought assistance of Bahraini contractors who employed over 200 Bahraini cadres in the project, and 14 Bahrainis were trained to operate the unit at highest professional standards.The safety milestone of 10 million man-hours was achieved without Lost Time Incident during the execution of this mega project.

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Tatweer Petroleum

Tatweer Key Achievements in 2011• Average total Field production in 2011 was 42,500 (Versus 31,900 bpd in

2010).• Black oil production exit rate 41,700 barrels at end-2011 (Versus 2010:

33,700 bpd in December). • 165 new oil and 1 deep gas (Khuff) wells put on production (Versus 2010:

25 oil wells and 3 deep Khuff gas wells). • Average Black Oil production of 38,000 barrels per day (Versus 2010:

27,300 bpd). • 1.9 billion cubic feet of non-associated gas average capacity available for

the year (Versus 1.5 billion for 2010). • Total annual committed spend of US$1.4bn (Versus 2010: a spend of

US$345 million). • 2 new H&P oil rigs, 3 new work-over rigs, and 1 new rapid service rig

contracted. • Well work executed in 2011 was 137 rig jobs, 323 stimulations (Versus

2010: 245 rig jobs, 194 stimulations).

• Rubble Steam injection pilots commenced. • New associated gas compression plants commissioned with capacity

of 130 MMSCFD.

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• 88 wells converted from gas lift to beam lift in addition to 103 wells converted in 2010.

• 2 new Gas Dehydration Units installed and commissioned. • 3 electricity substations constructed. • Maintenance, repairs and upgrades totaled over 500,000 man hours

of work (Versus 2010: totaled 315,000 man hours of work). • Time to Market reduced to 8 days from 10 days in 2010. • Headcount increased to 747 (from 624 in 2010), 62% of them are

Bahrainis. •Total of 106,200 training hours delivered (While 49,000 training

hours delivered in 2010).

• Digital canopy (wireless) covering Bahrain Field fully deployed.

• New automated systems for well m a n a g e m e n t , maintenance and inspection.

• Interim central control room and disaster recovery site operational. • Second Environmental Baseline Survey initiated.

Tatweer Health Safety & Environmental Achievements in 2011 :• “One Million Work Hours ” Award from the U.S. National Safety

Council received .

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• Combined Injury & Illness Report (IIR) of 0.36 versus Plan of 1.0 • 3.6 million man-hours without Lost Time Accident (LTA) for

Contractors • Contractors Safety Forum & on-boarding program implemented .• Risk Reduction measures implemented • Emergency Response Plan tested and optimized .• Health Safety & Environment Day & Tatweer Health Campaign

reached over 1,200 participants .

• Health Safety & Environment Management System: •“Half of Grace Period Assessment” .• Externally validated by DNV and found adequate in meeting ISO 14001.

•Environmental Base Line -1 completed .• LNO obtained from GDEWP for 14 additional projects .• 2011-2012 Camping Season campaign launched .• Hand Safety Campaign launched.

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Skaugen Gulf is a Bahraini closed shareholding company. It was incorporated on 1st October 2009 and its commercial registration number is 72945. The name of the company is “Skaugen Gulf Petchem Carriers B.S.C©” followed by the expression “Bahrain Joint Stock Company (Closed)” or the initials “B.S.C.(c)”. nogaholding share 35% of capital, while I.M.Skaugen has 35% and 30% for Capital Management House.

The company is registered to operate as a ship owning company in the Kingdom of Bahrain and is involved in leasing and owning specialized ships. The target operational market for the company’s fleet is theshipping of liquefied gases including Ethylene, Propylene, NaturalGas and other feedstock gases from prominent manufacturers in the Arabian Gulf to various destinations, mostly in Asia. Norgas Carriers AS, a subsidiary of I.M.Skaugen SE, is operating Skaugen Gulf’s fleetalong with other vessels in Norgas’ fleet portfolio.

Milestones and Achievements Skaugen Gulf has the ambition of becoming the largest private regional company in the field of specialized transportation of liquefiedgases. It will target to position itself as a strong service provider in the shipping industry.

Skaugen Gulf Petchem Carriers (SGPC)

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The following are highlights of the Skaugen Gulf Concept: - Ownership of a fleet of liquefied gases shipping vessels with medium to

large shipping capacity (8,000 – 17,000 cubic meters).- Although starting with used vessels, the target is to own a modernized fleet.- Benefit from I.M.Skaugen SE & Norgas’ long and strong track record in

managing operations in this highly specialized shipping sector.- Further strengthening the existing positive relationships that

I.M.Skaugen SE and Norgas are having with main customers in the Gulf and marketing services to new potential customers.

To achieve its business ambition, Skaugen Gulf started by acquiring two vessels. I.M.Skaugen SE leased Skaugen Gulf 2 ships. The 2 ships are currently operating within Norgas Pool and are highly profitable.Moreover, SGPC supported the Bahrain’s commitment to delivering energy requirements in alignment with the Kingdom’s 2030 vision by hosting the formal naming ceremony of the multi-gas vessel Bahrain Vision, at Khalifa bin Salman Port on 14 November 2011.

Bahrain Vision, a USD55 million state-of-the-art specialist multigas carrier, is owned by I. M. Skaugen SE, a stakeholder in Skaugen Gulf Petchem Carriers (SGPC). These new generation carriers will trade worldwide for the marine transportation of Liquefied Natural Gas (LNG) and LiquefiedPetroleum Gas (LPG) with SGPC poised to fulfill the requirements of theregion’s fast-growing petrochemical sector.

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The ceremony was hosted under the patronage of and attended by HRH the Prime Minister Prince Khalifa bin Salman Al Khalifa, several ministers, ambassadors, government officials, VIPs and members of the businesscommunity.

Potential Challenges:The petrochemical industry in the GCC has grown significantly over thelast decade, and SGPC has since its inception in Bahrain, been in a position to capitalize on this growth via its assets securing the transportation needs of the petrochemical exporters in the region.

Moreover and based on the environmental changes and the future development, LNG is becoming the energy source for the future.

Crude oil and thus the derivative products such as diesel and heavy fuel oil is much too valuable a commodity to be used for transportation and power generation and should be used by the petrochemical and life sciences industries instead, and thus makes it important also for SGPC to become an “Energy Transporter” also covering LNG.

As an integral part of SGPC strategy, we are focusing on developing a LNG infrastructure, enabling Bahrain to use LNG instead of oil and open up Khalifa Bin Salman Port as a re-distribution hub of LNG to the region.

Since the world is realizing the move towards extracting and using the gas as an alternative to Crude oil, there has been scarcity in finding vesselsto transport the same. SGPC plan is to acquire (lease/buy) a fleet tosupport its business objective, but it hasn’t been easy to find the suitablevessels in the market to fit strategically with SGPC’s exist sing fleet andits business objective. However, lately and due to intensive and rigorous efforts by our partner, SGPC is evaluating a proposal to acquire 3 Ethylene LPG/C vessels that will give excellent trading opportunity to SGPC.

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DETAILS 2007 2008 2009 2010 2011

1-CRUDE OIL 67.262

66.865

66.510

66.376 69.452

BAHRAIN FIELD 12.552

12.027

11.750

11.635

15.516

ABU SAAFA FIELD 54.710 54.838

54.760

54.741

53.936

IMPORTED CRUDE 83.112

82.894

81.895

85.658

79.263

2-GAS* 507.671

538.233

543.425

556.642

552.118

3-REFFINERY 97.904

96.367

95.598

99.362

96.026

4- LIQUIDS OF GAS 3.503

3.568

3.589

3.771

3.933

PROPANE 0.944

0.949

0.952

0.999

1.044

BUTANE 0.896

0.920

0.907

0.937

1.002

NAPHTHA 1.663

1.699

1.730

1.835

1.887

5- PETROCHEMICAL** 1.373

1.545

1.534

1.476

1.575

AMMONIA 0.417

0.474

0.470

0.429

0.458

METHANOL 0.371

0.410

0.410

0.418

0.443

UREA 0.585

0.661

0.654

0.629

0.674

* BILLION CUBIC FEET* * Million METRIC TONS

OIL & GAS Statistics2007-2011 (Million Barrels)

Year Natural Associated Total

2007 407.755 99.916 507.671

2008 435.890 102.343 538.233

2009 440.640 102.785 543.425

2010 451.351 105.291 556.642

2011 446.766 105.351 552.117

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Production of Gas (Billion Cubic Feet)

DISTRIBUTION OF GAS CONSUMPTION For 2011

THE ELECTRICITY & WATER AUTHORITY 37%

ALBA 24%

BAPCO 9% 15%

GPIC 8%OTHERS

7%RE-INJECTED

Year Natural Associated Total

2007 407.755 99.916 507.671

2008 435.890 102.343 538.233

2009 440.640 102.785 543.425

2010 451.351 105.291 556.642

2011 446.766 105.351 552.117

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(Million U.S. BARRELS)

DETAILS 2007 2008 2009 2010 2011

PROPANE 0.146

0.236

0.229

0.529

0.341

BUTANE 0.249

0.454

0.339

0.358

0.543

NAPHTHA

13.668

14.332

14.132

15.409

14.798

GASOLINE 2.253

2.988

1.822

1.724

0.758

KEROSENE 0.849

0.744

0.209

0.139

-

JET FUEL 17.151

15.425

16.414

19.371

19.693

DIESEL 33.402

29.437

29.551

29.501

26.314

FUEL OIL 15.692

14.627

15.619

15.435

17.559

SULPHUR 0.198

0.339

0.433

0.744

0.471

LUBE BASE OIL

-

-

-

-

0.074

ASPHALT 2.982

3.012

2.596

2.393

1.978

FEED STOCK

0.314

-

-

-

-

TOTAL 86.904

81.594

81.344

85.603

82.529

DAYLIY EVERAGE

0.238

0.224

0.223

0.235

0.226

PETROLEUM PRODUCTS EXPORTS 2007 - 2011

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BAHRAIN EXPORTS OF PETROLEUM PRODUCTS2007 - 2011

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Oil and Gas Agreements1.Exploration and Production Sharing Agreements in Offshore Blocks

The offshore area in Bahrain was divided into four blocks. NOGA has awarded Blocks 1, 3 and 4 to the US based Occidental Petroleum and Block No. 2 to PTTEP from Thailand.The drilling operations by Occidental Petroleum are the result of the EPSA signed between NOGA and the company for offshore Block 1, 3 and 4. Occidental has completed the geological and geophysical studies and performed seismic surveys in Block 4. Geological maps have been developed to identify locations for drilling.

Drilling by Occidental is expected to continue over the next months in the offshore blocks, with an exploratory well in each block, beginning with Balaj 1 in Block No. 4, Mashtan 1 in Block No. 3 and Ammari 1 in Block No. 1. PTTEP is expected to start drilling by mid 2012 in Block No (2).

2.Final Deep Gas AgreementIn February 2011, an agreement was signed to participate in the exploration and production of deep gas between NOGA and US company, Occidental. The agreement is in line with the directives of His Majesty the King and Bahrain Government to provide gas supplies for industrial uses and power generation in the Kingdom. The deep gas project is one of the 12 initiatives launched by NOGA for optimal utilization of the nation’s natural resources. Bahrain will seek to explore gas in the deep layers of the Bahrain Oilfield through relevant state-of-the-art technology. Exploration will last for seven years divided into two phases, four years and three years.

The first phase of this new deep gas exploration project will start byconducting geo-engineering studies to identify the potential deep gas reservoirs and to rationalize drilling and testing operations. This will be followed by drilling three exploratory wells at a depth of 18,000 feet and a fourth well during the second phase of exploration.

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Bahrain and Organization of Arab Petroleum Exporting Countries (OAPEC)

Arab Petroleum Exporting Countries (OAPEC) was Formed in January 1968 consisting of ten Arab oil exporting countries which are United Arab Emirates, Kingdom of Bahrain , Algeria, Kingdom of Saudi Arabia , Syria ,Iraq , Qatar, Kwait , Libya ,and Egypt. The Kingdom of Bahrain joined OAPEC in 1970 and had the privilege to chair the Council of Ministers of OAPEC during 2011 held in Cairo 24th December 2011. OAPEC aims at combining co-operation of the member

states in enhancing and developing the Arabian Oil Industry through the exchange of expertise and information. It tends to give opportunity of training work and utilization of the resources of such countries and its potentialities to establish joint venture projects in various activities related to such a vital industry. From the beginning OAPEC undertook to constitute a judicial body. to settle conflictsand disputes among its members in peaceful ways. The following are companies and organizations, which have been formed by OAPEC and are contributed to by the Kingdom of Bahrain. OAPEC is organized in cooperation with the League of Arab States, the Arab Fund for Economic and Social Development, the Arab Organisation for Industrial Development and Mining Arab Energy Conference, which is held every four years.

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Arab Marine Petroleum Company (AMPTC)

This was formed in January 1973 with its headquarters in the State of Kuwait with an authorised and subscribed capital of US $ 500 million. The main objective of AMPTC is to undertake all the marine transport of hydrocarbons. Moreover, AMPTC has contributed in the training of many Bahraini students in the area of marine transport in specialised college at Alexandria and UK.

The company currently has 11 tankers ( Crude oil - 4, Refined products - 3, Liquefygas - 4). The company consistently remains technologically advanced and increases its fleet to keep pace with the latest international legislations. It is now consideringan immediate plan to replace tankers built in the nineties with new tankers. These tankers are as the following: Umm Shaif Tanker, Aisha , Zirku Tanker, Album Tanker, Zallaq Tanker, Aldawha Tanker , Shayba Tanker, Gas Alkhaleej Tanker, Ocean Gas Tanker , Alburaq Tanker and Sea legend Tanker. The company is currently building (2) more tankers.

Arab Shipbuilding and Repair Yard Company (ASRY)

Arab Shipbuilding and Repair Yard Company (ASRY) This was founded in Decem-ber 1974 with its headquarters in Bahrain and with an authorized capital of US $ 340 million. The main objective of ASRY is to carry out all the operations related to the shipbuilding, repairs and maintenance for all kinds of ships, oil tankers and all other marine transport means specified for the carriage of hydrocarbons. Otheroperation carried out by ASRY are the repair of industrial and electrical equipment and apparatus steel structures and marine high pressure tanks. In 1991 there was a new launch for the Company when it commenced the new expansion through the purchase and installation of two floating docks which would rank ASRY as one ofthe biggest ship building companies in the world. In December 2011 , ASRY cel-ebrated the 35th anniversary of its establishment. The inaugural ceremony of the expansion of the company was held under the patronage of His Majesty the King Hamad bin Isa Al-Khalifa at the company headquarter in Al-Hidd and was opened by Crown Prince H.R.H.Prince Salman bin Hamad Al-Khalifa .

Arab Petroleum Investment Corporation (APICORP)

APICORP was incorporated on December 1974 with an authorised capital of US $ 1.25 billions and with its headquarters in Dammam, Kingdom of Saudi Arabia. The most important objective of APICORP is to contribute in financing the projects inthe petroleum industry and other associated or integrated activities to such projects and industries with priority given to Arab joint ventures.

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Arab Chemical Detergent Co. was developed from APICORP with its headquarters in Iraq.This company contributes in many companies and projects operating in the oil and gas sector. The company opened one office in the Kingdom of Bahrain.

Arab Petroleum Services Company (APSC)

Founded in January 1977 with an authorised capital of LD. 100 millions and its headquarters in Tripoli in Libya. The main objective of APSC is to undertake the petroleum services through the creation of specialised companies in one of more areas of petroleum services.Various specialised companies were eminated from APSC:

1.Arab Well Drilling & Maintenance Co:

Founded in 1980 with its headquarters in Libya. The Company is specialised in the scope of drilling and maintaining oil, gas and water wells. The capital of this Com-pany is US $ 40 millions. Moreover, Arab Petroleum Services (APSC) owns 40%, Arab Petroleum Investment Corporation (APICORP) 20%, and for Santafi 40%.

2. Arab Well Logging Co:

Founded in 1983 with its headquarters in Iraq and an authorised capital of $20 million. This company is wholly owned by Arab Petroleum Services Company (APSC). Its main operations are the exploration of wells and other associated services.

3. Arab Geophysical Exploration Co:

The company was formed in 1985, the capital is LD. 4 million. Arab petrolum services owns 40%, Apicorp 10%, National Petroleum Corporation ( Libya) 10% and Geo - Source 40%.

Arab Petroleum Training Institute (APTI)

APTI was formed on 9th May 1978 with its headquarters in Baghdad, Iraq for the purpose of the preparation of trainers and other administrative, technicans and managers in various oil fields. Many of the specialists and trainers in Bahrain OilCompanies and government institutes took part in APTl's courses.

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Bahrain and Organisation of Petroleum Exporting Countries (OPEC)

On 10th September 1960, the Organisation of Petroleum Exporting Countries (OPEC) was incorporated with various objectives including

the necessity for the stability of oil prices and the control of production throughout the most favourable equal distributive quota of production, coupled with the assurance of supplies to the petroleum consuming countries.

OPEC, was founded by those states possessing abundant oil production in the world markets i.e. Saudi Arabia, State of Kuwait, Iraq, Iran Venezuela and later on, Algeria, Libya, Qatar, U.A.E. (Indonesia, Gabon), Nigeria and Ecuador.

OPEC has played an important role in various occasions to effect the control of petroleum rates and markets .

Despite the fact that Bahrain is not a member of this organization, it continues to track all it’s activities and to co-ordinate with the Gulf and Arab members and also throughout organization of Arab petroleum Exporting Countries (OAPEC) for the benefit of all.

His Excellency Dr. Abdul Hussain bin Ali Mirza, participated in the OPEC Ministerial Meeting No.155 held in Angola on December 22, 2009. The participation, the first of its kind for Bahrain, was following an invitation toHE the Minister to represent Bahrain at the meet from HE the Secretary General of OPEC.

The Kingdom of Bahrain delegation headed by HE Dr. Abdul Hussain bin Ali Mirza Energy Minister , will take a part of the 5th International Energy Seminer organized by OPEC in Vienna during the period of 13 -14 June 2012.

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COMPARISON TABLE BETWEEN OAPEC AND OPEC

Particulars

Established on

Location

Founders

Members

Organisation

Objectives

Organisation of Arab PetroleumExporting Countries (OAPEC)

9 January 1968

Kuwait - State of Kuwait

Saudi Arabia-Kuwait-Libya

Saudi Arabia, Kuwait, Iraq, Bahrain,Qatar, United Arab

Emirates, Egypt,Libya , Syria,and Algeria,(Tunisia Inactive member)

1- Ministerial Council2- Executive Bureau

3- General Secretarial

Co-Operation & Co-OrdinationMaximum Utilisation of Petroleum

Organisation of PetroleumExporting Countries (OPEC)

10 September 1960

Vienna - Austria

Saudi Arabia,Kuwait, Iraq, IranVenezuela

Saudi Arabia, Kuwait, Iraq, Iran,Venezuela, Algeria,Libya,

Qatar,United Arab Emirates, Nigeria, Ecuador & Angola

1- Conference2- Governors Council

3- Economic Commission

Price Stabilities - ProductionControl Assurance of Petroleum Supplies to Consuming Countries

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Kingdom of Bahrain and the International Energy Forum

The Kingdom of Bahrain is a member of the International Energy Forum and participates in the forum held every two years. The forum was launched in 1991 in Paris with the objective to provide an opportunity for dialogues and discussion between high-level producers and consumers of oil, work to develop an understanding of energy issues internationally, strengthen relations between producers and consumers and to study the links between energy, environment and economic growth. The Energy Forum serves as an important voice to meet the producing and consuming countries; national and international oil companies as well as international organizations concerned with oil and energy affairs. The forum is important as it comprises organizations concerned with the interests of consumers such as the International Energy Agency. Oil producing countries and OPEC are both working with the International Energy Forum to meet the challenges of the future and the benefit of rightsof oil producer and consumer countries alike. The headquarters of the Secretariat for the forum is in Riyadh the capital of Saudi Arabia. The Secretariat is working to find a complete and accurateinformation base, initiate studies and research and contribute to the organization of the International Energy Forum in cooperation with the host country.

Kuwait hosted the International Business Energy Forum in March 2012, where the Kingdom of Bahrain participated with a delegation headed by Minister of Energy Dr. Abdul Hussain bin Ali Mirza. The Minister highlighted the achievements of NOGA since the issuance of Royal Decree No. (63) for the year 2005 and future plans for the development of oil and gas sector

at the forum.

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