Bapco autonomy move ruled out
Manama, February 8, 2014
Bahrain government has ruled out plans to revamp the kingdom's flagship petroleum company Bapco to ensure its financial independence, said a report.
Such a move will require a series of procedures and other complicated measures, reported the Gulf Daily News, our sister publication, citing the Finance Minister and Minister in charge of Oil and Gas Affairs Shaikh Ahmed bin Mohammed Al Khalifa.
He stressed particularly bonding Bapco and banks to finance its strategic investment projects, the report stated.
Responding to MP Abdulhalim Murad, the minister said any major changes in Bahrain's largest petroleum company would be difficult, stressing the need for a series of complicated measures to ensure successful autonomy.
He cited the operational budget of $800 million which is allocated annually to finance raw oil imports from Saudi Arabia.
The minister also highlighted other expenditure which amounts to a total of $100 million per annum.
Subsidies on oil prices for domestic consumption also average $700 million annually, he said.-TradeArabia News Service