The Bahrain Petroleum Company (Bapco) has announced that it has reached financial close on its multi-billion-dollar Bapco Modernisation Programme (BMP).

The financial package is a key milestone in the BMP’s progress and its successful closure means Bapco can proceed to the next stage of the project, said senior officials at a ceremony held last month to mark the occasion.

The modernisation programme is a major undertaking for the company that will help boost Bapco’s refining capacity to 380,000 barrels per day (bpd) from 267,000 bpd, besides enhancing the product slate, energy efficiency and transforming the company into one of the most competitive and environmentally-compliant refineries.

Lauding the Bapco team for the financial close, Oil Minister Shaikh Mohammed bin Khalifa Al Khalifa said: “We achieved this by assembling a strong team that worked tirelessly to secure a positive result.”

“Given the size and scale of the BMP, this is a mutually beneficial conclusion for a wide variety of partners from across the globe because it means we can provide a wider product offering and meet higher demand from our customers,” he stated.

The Bahrain oil major assembled five export credit agencies (ECAs) and a syndicate of 21 commercial banks to finance the project. This included a combination of commercial and Islamic bank financing with both regional and international banks.

Financing was formally secured on December 20 last year with BNP Paribas, HSBC Middle East and Verus Partners acting as financial advisors to help Bapco meet the conditions required successfully to close the financing process.

The foundation stone for the project was laid in March this year during a ceremony held under the patronage of HRH Prime Minister Prince Khalifa bin Salman Al Khalifa, in the presence of HRH Prince Salman bin Hamad Al Khalifa, the Crown Prince, Deputy Supreme Commander and First Deputy Premier.

BMP is projected to be completed by 2022 and will contribute significantly to the sustainable development of the kingdom.