Bahrain's Energy Industry

Bahrain: steady output offshore

Bahrain’s oil and gas sector is minor compared to neighbouring industries but significant to the country’s energy industry and economy. While it is the smallest oil producer among GCC members, the industry has traditionally dominated export receipts and contributed the bulk of government revenues. The sector is run by key state players such as Bapco Energies, National Oil and Gas Authority and its investment arm Nogaholding. The country began diversifying and liberalising its economy in the 1970s and now boasts developed non-hydrocarbons sectors such as Islamic banking, tourism and construction.

Most of Bahrain’s oil and gas production is from its onshore Bahrain field (also known as Awali) and offshore Abu Safah field. The latter field makes up most of the country’s production and is operated by Saudi NOC Saudi Aramco, with 50% of its revenues transferred to Bahrain. The country made a significant find on its offshore Khalij al-Bahrain reservoir in 2018 that boosted expected reserves significantly by 80 billion barrels.

While the country continues to explore and develop its oil and gas assets, Bahrain aims to have net-zero carbon emissions by 2060. To reach this target, Bahrain aims to produce 710 MW from renewable sources by 2035. Bahrain’s Sustainable Energy Authority was created in 2019 to oversee efficient energy policy and promote renewables in the energy mix. The entity is targeting solar, wind and waste-to-energy facilities to achieve its goals.