Page 24 - MEOG Annual Review 2021

MEOG NOVEMBER MEOG

Bahrain and Kuwait

talk transition

Another two Gulf states have spoken of their plans to
embrace the energy transition in the wake of COP26.

BAHRAIN/KUWAIT BAHRAIN and Kuwait used this week’s re-launched, the company could look to return
ADIPEC conference in Abu Dhabi as the oppor- to debt markets following the successful comple-
tunity to speak about their plans to belatedly join tion of an eight-year sukuk bond issuance in late
WHAT: the energy transition, though for both countries, March by NOGA’s investment arm nogaholding.
Bahrain and Kuwait oil and gas will remain important pillars of their The issuance raised $600mn at a price of
have spoken of plans to economies. 5.25%, according to Reuters, with initial guid-
increase their exposure The countries follow in the footsteps of Saudi ance having estimated a price of 5.75-5.875%.
to renewables and low- Arabia, the UAE, Qatar and Oman, which have The raise represents a significant increase from
carbon energies. sought to lead the way with rebranding exercises the expected $500mn, with the company having
and investment in low-carbon and renewable received demand of nearly $3bn.
WHY: energies ahead of COP26, which concluded last Bahrain’s approach appears to be following a
Despite having nimbler week. similar trajectory to that of Oman, which trans-
economies, they trail While Bahrain has set a target for reaching ferred the assets of Petroleum Development
Gulf energy transition net zero, Kuwait has remained notable by its Oman (PDO) to the newly launched Energy
trailblazers Saudi Arabia apparent reluctance to embrace the energy tran- Development Oman (EDO) last year and has
and the UAE. sition, while looking to ramp up oil production. subsequently raised around $2.5bn of debt lever-
aged against the reserves of the Sultanate’s giant
WHAT NEXT: Island intentions Block 6 concession.
Despite their green Bahrain is preparing to set up a new agency In May, Bahraini Oil Minister Mohammed
intentions, both countries focused on renewable and low-carbon ener- bin Khalifa Al Khalifa said that the Kingdom
are aiming to make gies following the abolition in September of was considering monetising its oil and gas assets,
significant increases to the National Oil & Gas Authority (NOGA). including the 112-km Saudi-Bahrain A-B oil
oil production over the The announcement comes just two weeks after pipeline and the Bahrain LNG import terminal.
coming decades. the country’s Cabinet said the Gulf intends to Meanwhile, the minister remains optimistic
achieve net-zero carbon emissions in 2060. that the country remains on track to commence
Speaking at ADIPEC, Mohamed bin production from the offshore Khaleej Al Bahrain
Mubarak Bin Daina, special envoy for Climate (KAB) shale deposit despite limited progress to
Affairs and CEO of Bahrain’s Supreme Coun- date. KAB is estimated to contain 80bn barrels
cil for Environment, said that NOGA would of tight oil.
be transformed into a vehicle that will help the In November 2020, NOGA subsidiary Tat-
Kingdom diversify its energy supplies. Bahrain’s weer Petroleum announced plans to drill eight
renewable energy target is to achieve 700 MW of new offshore wells to a depth of 8,000-13,000 feet
power generation capacity by 2030 solar, wind (2,438-3,962 metres) and a horizontal extension
and energy-from-waste. of 914-3,000 metres.
The Ministry of Oil (MoO) assumed the The Ministry believes that KAB has poten-
functions of NOGA in September following tial to produce around 200,000 barrels per day
the entity’s abolition by king Hamad bin Isa Al (bpd) of oil, which would be transformative for
Khalifa. the Kingdom’s economy, significantly reducing
“We’re now looking at the future of transition, its reliance on crude imports.
transferring this company from an oil and gas For now, though, the onshore Awali field, the
company into an energy company. That will help site of the Gulf Co-operation Council’s (GCC)
us look at the climate change impact, the energy first oil find in 1932, remains the kingdom’s sole
mix and the diversification of energy sources,” source of domestic production and has a capac-
Bin Daina told journalists on the sidelines of the ity of around 46,000 bpd.
event. Manama also receives a 50% share of the
150,000 bpd produced by Saudi Aramco at the
Cashing in offshore Abu Sa’fah oilfield, which is pumped
Bin Daina noted though that nothing was alongside a further 75,000 bpd of Arabian Light
planned imminently, but once it has been crude from the Abqaiq processing facilities in

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