A Bahrain-based lubricants base oil company was set up on Wednesday, June 17, in a joint venture between Bahrain and Finnish Neste Oil Corporation. A contract establishing the firm and approving the bylaw was sealed.
Oil & Gas Affairs Minister and National Oil & Gas Authority (NOGA) Chairman H.E. Dr. Abdul-Hussain bin Ali Mirza signed the deal along with a Neste representative, in the presence of a registrar from the Justice & Islamic Affairs Ministry. Present was Bapco Chief Executive Abdulkarim Al-Sayed.
The Bahrain Lubricant Basic Oil Lubrication Holding Company Limited has been allotted a capital of BD225 million.
The government, represented by the Oil & Gas Holding Company and Bapco, retains a 55% stake in the new plant, leaving a 45% stake for Neste Oil Corporation.
The plant is expected to top an annual output of 400,000 metric tons of high-quality and world standard lubricants base oil. Based at Bahrain Refinery, the multi-million-dinar project is expected to be complete by 2011. It will create 1,500 temporary work opportunities and 30 permanent ones for Bahraini jobseekers.
“The agreement is in line with NOGA’s strategy to preserve natural resources and optimise financial revenues,” Dr. Mirza said. He described the plant as an added value, as it would consolidate Bahrain’s revenues by producing high-quality lubricants base oil. He also paid tribute to the leadership for incessantly promoting the oil and gas sectors as key pillars of the national economy.