New Investments to Double Bahrain’s Oil Production Using Latest Technology
Dr. Ed Hanley, Chief Executive of Tatweer Petroleum
In 2010, Tatweer spent a total of US$ 345 million through 200 contracts and 1,300 purchases; and created 240 new jobs, with many of them going to young Bahrainis. We are very much positive that our efforts will lead to maximizing the Field production capacity to triple in seven years’ time, reaching 100,000 barrels per day.
Interview with Dr. Ed Hanley Chief Executive of Tatweer Petroleum
In your opinion how do you see the future evolution of oil prices in the short, medium and long term horizon?
Oil prices will remain at current levels because of the high demand and the current crises in the Middle East. We are not in the business of predicting oil prices but we expect that oil prices may continue to be at this level for some time.
Oil prices will remain at current levels because of the high demand and the current crises in the Middle East.
In your opinion what are Bahrain’s prospects of developing its oil reserves?
We are very much positive that our efforts will lead to maximizing the Field production capacity to triple in seven years’ time, reaching 100,000 barrels per day. Gas delivery capacity will be increased to over 2.0 billion standard cubic feet per day by installation of new processing facilities and new well completion techniques.
Do you think the investment is well spent in the light of diversification efforts?
These investments are well spent as it aims at recovering additional oil from new reservoirs to refuel Bahrain’s economy and they are inline with Bahrain’s 2030 vision.
The investment plan will create thousands of jobs for Bahrainis – what is the guarantee that the investment will truly bring long term value to Bahrain?
These investments will bring long term value to Bahrain beside creating jobs for the Bahrainis.
How much more can be achieved?
One of our biggest technical challenges during 2010 was to halt and then reverse the decline in oil production.
We are applying Enhance Oil Recovery techniques over the next 5 years cycle, including waterflooding and steam injection, drilling over 900 new wells, and introduction of new completion methods in the Bahrain field. This should double the oil production. Other pilot projects for steam injection are also underway before the end of this year.
What are the technologies you are using?
We have started introducing rental gas compression to reinject associated gas into the underground beginning of April and the results are promising so far. We have started waterfolding pilot back in March 2011 and we expect that using these techniques will increase oil production further more. Other pilot projects for steam injection are also underway before the end of this year.
How would you describe the main challenge?
One of our biggest technical challenges during 2010 was to halt and then reverse the decline in oil production. The Bahrain Field is a mature oil field discovered in 1932. It had experienced many years of production decline before Tatweer took over operations in December 2009.
Over the past year numerous production enhancement programs were implemented and, as a result, the oil production decline of the Bahrain Field was reversed. At the same time, we successfully met all of the kingdom’s gas supply needs for one of the highest demand year on record.
Over the past year numerous production enhancement programs were implemented and, as a result, the oil production decline of the Bahrain Field was reversed.
What is Tatweer main responsibility towards Bahrain?
Our primary goal at Tatweer Petroleum is to increase oil production and reserves in the Bahrain Field, in a safe and responsible manner, and meet the Kingdom’s growing gas needs to energize further economic growth and prosperity in support of Bahrain’s 2030 Economic Vision.
By investing billions of Dollars over the next 20 years in redeveloping the Bahrain Field, Tatweer Petroleum will make a significant contribution to energizing Bahrain’s overall economic growth and social welfare.
What do you think is and will be Tatweer main contribution to Bahrain?
The Company is committed to giving preference to local contractors, merchants and the business community in terms of procurement and partnering; and to giving priority to Bahrainis in terms of employment and career development.
In 2010, Tatweer spent a total of US$ 345 million through 200 contracts and 1,300 purchases; and created 240 new jobs, with many of them going to young Bahrainis. At the end of the year, 64 per cent of the total workforce comprised Bahraini nationals, and this is planned to grow to between 80 and 90 per cent in the future.
How do you assess the relationship between the government and Tatweer?
We enjoy very good relations with the Government of Bahrain and receive full support from the political leadership for our company and its operations. Tatweer maintains close relations with the National Oil & Gas Authority and HE Dr. Abdul-Hussain bin Ali Mirza, The Minister of Energy continues to give the company his full attention & support