ADBUL-HUSSAIN ALI MIRZA Minister of Oil and Gas Affairs

he push to diversify and expand the Bahraini economy is necessary and positive, agree a handful of top officials, but they are also reminding young Bahraini businessmen and women not to forget a significant contributor to the country’s gross domestic product (GDP) – the oil industry.

“It has been there for 75 years and it will be there for another 75 years to come,” stated Dr. Abdul-Hussain Ali Mirza, Bahrain’s Minister of Oil & Gas Affairs. “My aim is to let them know that this is one of the main areas of the economy which will never die.”

Bahrain has a rich history in oil. Surrounded by some of the biggest oil and gas producing countries in the world: Saudi Arabia, Iran and Qatar, the small Gulf archipelago has earned a reputation as one of the best refining stations in the world.

Bahrain lays claim to having built the first refinery in the region some 75 years ago. Still in operation today, the refinery has integrated the most advanced technology for efficiency, safety and environmental protection.

“We have spent $1.2 billion on modernizing our refinery in order to meet new environmental specifications and to make sure we remain competitive in the international market,” Ali Mirza says.

Ensuring that Bahrain’s refining and production facilities stay on the cutting edge is the responsibility of the National Oil and Gas Authority (NOGA). Officially launched under a royal decree in 2005 by King Al Khalifa, the group has consolidated disparate groups, organizations and authorities under one roof. The result has been increased revenue and international investment through innovative thinking and creative action.

“Since the formation of Noga, we have already achieved most of our objectives, something which analysts said would take five years before in terms of innovation and developments,” declared Ali Mirza. He went on to cite across-the-board transparency as the crucial element in achieving government and international support and increasing profits.

“Unlike, the deals you hear about in other countries, where billions of dollars were given as commissions, we strictly avoid such practices. We want to be transparent and provide equal opportunities,” says the minister.

International oil companies have taken note of the newly formed organization. When Bahrain announced it had decided to step up its oil exploration efforts in surrounding waters, they hoped to draw some interest from international experts. Thanks to Noga, rather than having to persuade companies to come look for oil, Bahrain can now choose from various offers.

“A few years back no company bid in the previous tender. This time we got a total of 11 oil companies, which shows the success of being transparent and professional,” states Ali Mirza.

Importing adequate amounts of gas to fuel the growing Bahraini state will prove equally crucial to supporting development. “Now that Bahrain has become a center of attraction for investment, as a result of the political and economic reforms, all new industrial ventures that come here will require energy,” notes Ali Mirza. “Our gas production will not be enough to meet the energy demand in the future, so we have pursued import agreements.”

Production of gas in Bahrain has steadily grown since over the last eight years thanks to the Bahrain National Gas Company (BANAGAS). The Bahraini government owns a 75 percent stake in the company and uses Noga to oversee its operations. The award-winning Banagas focuses on processing associated gas into marketable products, supplying residue gas to support local industrial use.

In terms of authority, Noga has a wide range of responsibility in the oil and gas sector. It can approve the Government’s acquisition, participation and restructuring of companies; it inspects oil tankers that operate out of Bahraini ports; and lastly, it controls the crude oil either produced in Bahrainis field or imported from neighboring countries.

Minister Ali Mizra was quick to point out that Bahrainis looked forward to forging new relationships with foreign countries and organizations. He accredited Bahrain’s healthy relations with Middle Eastern and Western countries and lead of the oil and gas production to Bahraini leaders and the Bahraini people. “The government, headed by H.H. the prime minister, has always realized that Bahrain’s main source of wealth is its people.”