Saudi
& Bahrain sign 0m deal for oil pipeline
Saudi Arabia and
Bahrain have signed contracts worth
0m to lay a new 350,000-barrel per day (bpd) oil
pipeline between the two countries, Bahrain's Energy Miniter reveaeld. The new link is set to be operational by 2018, with the old
pipeline likely to be ******* from service in the second half of 2018. Agreements to build the
pipeline were signed by Saudia Arabia's Al Robaya Holding Company and the National Petroleum Construction Company of the United Arab Emirates. The new
pipeline will replace an ageing 230,0000 bpd link and enable
Bahrain Petroleum Company (Bapco) to expand the processing capacity of its 257,000 bpd Sitra refinery. Arabian Light crude oil will flow from
Saudi Aramco's Abqaiq plant via the 115-kilometre pipeline, 73 kms of which will run overland and the rest under the Gulf. The new pipelines capacity could be increased to 400,000 bpd, Abdul-Hussain bin Ali Mirza 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", Mirza said. The cost of the
pipeline will be met by **gaholding, an investment vehicle which holds the Bahraini government's oil and gas assets. Arabian Light crude oil will flow from
Saudi Aramco's Abqaiq plant via the 115-kilometre pipeline, 73 kms of which will run overland and the rest under the Gulf. RELATED ARTICLES: Kuwait-to-start-oil-exploration-work-by-2017 , Transport-projects-unaffected-by-low-oil-price , Low-oil-prices-**-threat-to-new-Mall-of-Qatar ,