The downstream petroleum industry is witnessing a diversification phase, transforming the Middle East from an exporter of crude to an exporter of finished products.

Mr Shaikh Ahmed bin Mohammed Al Khalifa finance minister and minister in charge of Oil and Gas Affairs said that Bahrain where oil was first discovered in the region, still presented great opportunity for those in the petrochemical business to take part in developments and investments in the region.

Mr Al Khalifa said that "We have reached critical mass and the next step for the region is to move down the petrochemical chain," he said. "Each new investment opens the door to many others to produce more complex and sophisticated products. It also opens the door for smaller investors and joint ventures, who can take advantage of niche markets, overseas or local. The region is starting this phase, turning from a large volume wholesaler to a more sophisticated, high margin producer.”

He said that JV in the petrochemicals industry were the way forward. Partners can provide technology, technical expertise, finance and management and open their marketing channels and expertise to joint ventures. The number of potential petrochemical products could grow exponentially to hundreds. The best location to produce them depends on many factors the most important being the markets. This is one area a partner can be most helpful in and we can develop these markets and products jointly in an efficient manner.

He added that Bapco has recently completed USD 1.2 billion strategic investment program including a joint venture with Neste Oil of Finland, producing high quality lube base oils and is currently involved in a multi-billion dollar modernization program.

Source - Trade Arabia

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