Page 179 - DILMUN NO 19

he Economic istoyr of ahrain

ocal later sold 0% of its share to eaco, thus forming Calte as the new
owner of apco, ome epetrs who discoered oil in ahrain also managed
to uncoer oil in Eastern audi rabia in 13; thus, ahrain's petroleum
industyr played a role in the oil discoeyr of audi rabia, which in turn today
has more proen oil reseres than any other county in the world. y the time
oil was discoered in the Eastern roince of audi rabia, ahrain was in
the business of epotring refined product.s

efining oil has been encouraged from the onset, t the initial stage, the oil

concern set up an abridged refinery. ocated some eight miles to the east of

the crude oil field, the island of itra was selected as the site of the refineyr

for it proided a deep-water harbor and an anchorage for sea-going tankers.

١n the early 140s, CO and apco both patrly owned by ocla)

reached an agreement with respect to selling crude oil to ahrain's refinery.

s such, a 34-mile pipeline was erected bewteen Eastern audi rabia and

ahrain to take adantage of the shotr distance and aoid the compleities

associated with loading and unloading.1 he current refineyr capaciyt is

20,000 bpd.

Goemment purchase of shares in the petroleum industyr statred in the
170s. ١n 17, the state bought 7% later etended to 100%) of the
eploration, production and other rleated actiities of the local field;
accordingly, ahrain ational Oil Company anoco) was set up to cater to
the goemment's stake. oreoer, at the statr of the 10s, the goernment
purchased 60% of the refineyr, with the balance purchased in 17 atfer
Calte relinuished its 40%share. he numerous banks operaitng in ahrain
played a key role in financing the goernment purchase of its stake in the
petroleum industyr, thus allowing ahrain to derie yet another benefit from
the presence of numerous financial institutions in the island.

1 elgare, Welcome to ahrain, 47.