Three international oil companies have been shortlisted for the development of Bahrain Field, which may lead to doubling of oil production in the country.

The government will set up a joint venture with the selected company, Oil and Gas Affairs Minister and National Oil and Gas Authority (NOGA) chairman Dr Abdulhussain Mirza told our sister publication, the Gulf Daily News.

The move could allow Bahrain to double its oil production under development plans and give its economy a massive boost.

"Out of eight companies which submitted the initial bids for onland exploration, we shortlisted three, US firms ExxonMobil and Occidental and Denmark-based Maersk," he told the GDN.

"These three will now submit the final bids and one of them will be selected during the first quarter next year.

"Representing the Bahrain government, NOGA will set up a joint venture with the selected international company."

The new company will operate and manage the Bahrain Field's incremental production, said Dr Mirza.

"Our current base production from the Bahrain Field is about 33,000 barrels per day," he said.

"It is expected that the Bahrain crude production will increase in large quantity once the exploration work is carried out by the selected company.

"The company which agrees to share the maximum from the increased production with the government will be awarded the contract."

The government will enter into a commercial contract with the selected firm.

"The company will carry out the exploration at their own cost," said Dr Mirza. "It will also use the most modern technology."

The project is expected to be commissioned within two to three years, said Dr Mirza.

One of the shortlisted firms, Occidental, is already carrying out exploration work on the offshore block.

Sources told the GDN that the new project may help Bahrain to double its oil production.

A website outlining details of the exploration project was opened in March last year by Dr Mirza during the Middle East Oil and Gas Show 2007.

It was followed by roadshows in London, Los Angeles and Houston, which generated interest in international companies.

"Bahrain has been considering various commercial frameworks for partnering with international oil companies in the redevelopment of both its light and heavy oil reserves, as well as gas reserves," said Dr Mirza.

"We are happy that we have received many good reports on NOGA's transparent activities from international companies and organisations."

The Cabinet earlier studied and approved a memorandum submitted by Dr Mirza on the new joint venture company and the Bahrain Field development. - TradeArabia News Service