Skip to content Skip to Search
Skip navigation

US approves $500m loan for Bahrain oil project

Bahrain's Bapco signed the Cop28 oil and gas decarbonisation charter, aiming to achieve net-zero operations by 2050 and end routine flaring by 2030 Reuters
Bahrain's Bapco signed the Cop28 oil and gas decarbonisation charter, aiming to achieve net-zero operations by 2050 and end routine flaring by 2030

The US export credit agency has approved a $500 million loan guarantee for Bahraini state-backed Bapco Energies.

The Export-Import Bank of the United States (Exim) board of directors greenlit the project after voting last month to notify Congress about potentially supporting the expansion of an oil and gas field in the Gulf nation.

JP Morgan has acted as the lead arranger for the loan.



Oil and gas continue to play an essential part in Bahrain’s economy, although the kingdom is believed to have one of the most diverse economies in the GCC.

The hydrocarbons sector accounted for 17.7 percent of real GDP in 2022 and 68 percent of total government revenue in 2021.

The island nation has been looking for international financing for a $4.2 billion field oil and gas expansion programme.

This involves upgrades to existing field infrastructure, the drilling and completion of at least 430 new oil wells and up to 34 new gas wells in one of the oldest extraction fields across the Middle East.

All production associated with the Exim-backed project is expected to be consumed domestically in Bahrain, leading to no net increase in export energy supplies.

Bapco has committed to sustainability by signing the Cop28 oil and gas decarbonisation charter, aiming to achieve net-zero operations by 2050 and end routine flaring by 2030.

“This transaction will support thousands of US jobs and play a crucial role in ensuring Bapco Energies is able to achieve its climate goals of enhanced grid interconnectivity, more efficiency, decarbonisation, and investments in large-scale solar projects,” Exim president and chair Reta Jo Lewis said.

The project will prioritise emissions reduction, including implementing leak detection systems, on-site solar energy production, and the elimination of higher-emitting process equipment and non-emergency flaring.

The US is among the more than 30 countries that joined a pledge to end public financing of fossil fuel projects overseas at the Cop26 climate conference in Glasgow in 2021.

Reuters, however, reported that the US export agencies have approved eight fossil fuel projects valued at more than $2 billion since making the pledge.

Latest articles

Microsoft president Brad Smith and G42 CEO Peng Xiao (right) sign the $1.5bn investment deal in the presence of G42 chairman Sheikh Tahnoon bin Zayed Al Nahyan

Microsoft invests in UAE’s AI leader G42 

The US tech giant Microsoft will invest $1.5 billion in the Abu Dhabi-based artificial intelligence (AI) company G42 to help accelerate its global expansion strategy. As part of the deal G42 will run its AI applications and services on Azure, Microsoft’s cloud computing platform. Brad Smith, vice-chair and president of Microsoft, will join the G42 […]

Spinneys CEO Sunil Kumar and chairman Ali Al Bwardy. The company operates 75 grocery retail supermarkets in the UAE and Oman

Spinneys to offer 900m shares in Dubai IPO

Supermarket operator Spinneys will sell 25 percent of its business in an initial public offering (IPO) on the Dubai Financial Market (DFM), according to an intention to float document released on Tuesday. The company’s offering will be open from April 23 to April 29 for retail investors, while institutional investors can subscribe until April 30, according […]

The number of international passengers at DXB reached nearly 87 million in 2023, rising 32% from the previous year

DXB remains world’s busiest international airport

Dubai International (DXB) has maintained its status as the world’s busiest international airport, beating London and Amsterdam, the Airports Council International (ACI), an association of world airports, said in a new report. DXB has secured the top place for the 10th consecutive year, with the number of international passengers reaching nearly 87 million in 2023, […]

Architecture, Building, Cityscape

World Bank raises UAE’s economic growth outlook

The World Bank has raised its UAE economic growth forecast for 2024 and 2025, citing robust non-oil sector growth and higher oil output. The real GDP growth projection for the Gulf state was revised to 3.9 percent this year, up from its previous forecast of 3.7 percent in January, the World Bank said in its […]