Oil Drilling Rigs: Bahrain's Close Encounters With Black Gold

Bahrain has access to a large amount of oil and natural gas, with the Bahrain Petroleum Company (BAPCO) discovering the first oil well in the country in 1931. Since then, Bahrain has become a hub for oil drilling, with several countries vying to sign oil contracts. In 2024, it was reported that Bahrain planned to drill 900 oil wells over the next five years, with the US Export-Import Bank underwriting the drilling of more than 400 oil and gas wells. This has led to a high demand for drilling rigs and related services in the country.

Bahrain's oil drilling plans

Bahrain has been making plans to expand its oil drilling operations, with a focus on increasing its reserves and attracting foreign investment. In 2021, Bahrain's oil minister, Mohammed bin Khalifa Al Khalifa, announced that the country would begin drilling for its new offshore shale oil discovery, the Khaleej al-Bahrain field, by the end of 2022. This field is estimated to contain at least 80 billion barrels of shale oil, making it the country's largest oil and gas find since 1932.

Bahrain has been seeking foreign investment to help develop this field, with test wells being drilled in neighbouring land areas. In 2019, the minister mentioned discussions with U.S. oil companies specialising in shale oil development. However, no development or production-sharing agreements had been reached at that time due to the global economic recession and falling oil prices, which impacted investment by major international oil companies.

Bahrain's state-owned Tatweer Petroleum is leading the evaluation well drilling efforts, aiming to attract international oil firms to invest in the country. Bahrain's onshore and offshore fields have a combined average production of about 42,000-45,000 barrels per day (b/d), and the country aims to increase its reserves, currently estimated at 150-250 million barrels.

In addition to the Khaleej al-Bahrain field, Bahrain has also announced plans to drill 900 oil wells over the next five years, according to Tatweer Petroleum. This expansion includes both regular and shale oil fields, with the latter expected to have a significant impact on the country's oil production and exports.

However, there has been opposition to Bahrain's expansion of oil and gas drilling, particularly from environmental advocates. Some U.S. lawmakers have urged the Export-Import Bank of the United States (EXIM) to refrain from providing long-term loans or financial guarantees for these projects, citing concerns about the negative impact on the climate and the need to align with global efforts to limit global warming.

Oil drilling companies in Bahrain

Bahrain has a long history in the oil and gas industry. In 1931, oil was first discovered in the First Oil Well in Bahrain, which was operated by the Bahrain Petroleum Company (BAPCO). Since then, the country has continued to be a significant player in the oil industry, with a focus on expensive oil products and derivatives, such as ultra-low sulfur diesel.

In recent years, Bahrain has made new discoveries of oil fields and has announced plans to drill 900 oil wells over the next five years. This has attracted the interest of many international companies, with several countries vying to sign oil contracts with Bahrain. The country has signed agreements for cooperation in oil and gas with Morocco and the Republic of Cyprus, and it has a right to re-export Russian gas at preferential prices.

• SLB (U.S.): A global company with a presence in over 120 countries, offering expertise across the entire oilfield value chain, from exploration and drilling to production and reservoir management.
• Halliburton (U.S.): A leading international player, Halliburton provides a comprehensive suite of technologies and services for upstream, midstream, and downstream operations. They focus on innovation and digitalization.
• National Energy Services Reunited Corp (U.S.): This Houston-based company has made significant strides in the region, delivering a wide range of solutions for drilling, completion, workover, and production enhancement.
• Petrodar International (Bahrain): As a local company, Petrodar International has extensive experience in drilling, fracturing, and well completion. Their deep understanding of the Bahraini market and collaboration with national oil companies make them a strong competitor.
• Al-Badi Petroleum Services (Qatar): Al-Badi brings its expertise in drilling, well intervention, and production optimization to the Bahraini market. They prioritize safety, technology, and environmental responsibility.
• MB Petroleum Services (Oman): Operating across the GCC region, MB Petroleum offers services such as drilling, workover, well testing, and logistics. Their success is attributed to their strong partnerships and commitment to quality control.
• Tatweer Petroleum Services LLC (Bahrain): Tatweer is a joint venture between the National Oil & Gas Authority of Bahrain and Schlumberger. They leverage international expertise while also fostering local talent, focusing on advanced technologies and training programs for future growth.

The Bahrain oilfield service market is projected to grow, exhibiting a CAGR of 4.6% from 2023 to 2030, creating opportunities for both established and new companies in the industry.

Oil drilling equipment manufacturers

Bahrain has been a significant player in the oil industry since 1931 when the First Oil Well in the Arabian side of the Persian Gulf was discovered there. In 2018, Bahrain announced the discovery of a large field of shale oil, which is estimated to be the second-largest deposit of shale oil in the world. The country has also recently signed several agreements for cooperation in the areas of oil and gas with other countries.

To support its oil drilling operations, Bahrain would require equipment from manufacturers who produce and supply such machinery. Oil drilling equipment manufacturers create machinery and tools to extract oil from the ground. These manufacturers can be divided into two main categories: custom manufacturers and standard manufacturers.

Custom manufacturers design and build equipment tailored to the specific needs of their clients, such as BHL International Inc., which produces land and offshore oilfield structures and equipment. Another example is Southeast Texas Industries, Inc., which manufactures portable and offshore oil drilling rigs with features like living quarters and mud systems.

On the other hand, standard manufacturers produce a range of equipment for oil drilling that is not highly specialised or customised. Examples include Advanced Measurements, which makes control and information products for the oil and gas service industries, and Prospering International Inc., which manufactures oil drilling rigs, mud pumps, well control equipment, and more.

The performance of oil drilling equipment manufacturers is influenced by various factors, including global events, commodity prices, demand for oil and gas, and import competition. For instance, the pandemic, Ukraine war, and travel slowdowns have negatively impacted the industry, leading to a decline in revenue. However, high oil and gas prices drive demand for production expansion, ultimately boosting machinery sales.

Some of the biggest companies in the oil and gas drilling equipment manufacturing industry in the United States include Nov Inc. and Baker Hughes Company.

History of oil drilling in Bahrain

The history of oil drilling in Bahrain began in the early 20th century, with the discovery of oil in the country coinciding with the collapse of the world pearl market. Bahrain's economy was previously reliant on pearl diving and fishing.

Major Frank Holmes, a British Army quartermaster posted to the Middle East during World War I, played a pivotal role in the initial exploration for oil in Bahrain. Holmes had heard of seepages in and around the Persian Gulf and was convinced that oil would be discovered in Bahrain. Despite facing initial pessimism and opposition from geologists and the British, Holmes successfully persuaded the ruler of Bahrain at the time, Sheikh Hamad Bin Isa Al-Khalifa, to allow him to drill for oil. Sheikh Hamad stipulated that Holmes should first drill for freshwater, which he successfully found in 1925 and was rewarded with an oil concession.

Holmes then sought the support of international oil companies, eventually attracting the interest of Standard Oil of California (SOCAL). In 1929, SOCAL established the Bahrain Petroleum Company (BAPCO), which began the process of oil exploration in Bahrain. On October 19, 1931, the first log entry to commence drilling was made, and oil was first struck on June 1, 1932, at a depth of 1,122 meters. The initial oil flow rate was 9,600 barrels per day, and by the 1970s, the well was producing 70,000 barrels per day.

The discovery of oil transformed Bahrain's economy and society, with revenue from oil exports leading to rapid development. The establishment of oil fields and the subsequent exports turned Bahrain into a land of plenty, attracting foreign nationals and expatriates seeking opportunities in the oil industry. The success of Well Number 1 led to further exploration and the establishment of more oil fields across Bahrain and the Arabian Gulf.

In 1980, the Bahrain Petroleum Company (BAPCO) was taken over by the Government of Bahrain, marking a shift in the ownership and control of the country's oil resources. Bahrain has continued to invest in its oil industry and plans to drill 900 oil wells over the next five years, indicating that the country's petroleum story is far from over.

Offshore oil rig maintenance

Bahrain was the first place on the Arabian side of the Persian Gulf to discover oil, and the country is now looking to capitalise on its reserves. In 2018, Bahrain announced the discovery of a large shale oil field, with an estimated reserve of 80 billion barrels of oil—the second-largest deposit of shale oil in the world. Since then, the country has been vying for oil contracts with several countries, including Morocco, Russia, and Cyprus. Bahrain has also been in talks with Turkey about investing in its oil fields.

With this new-found wealth, Bahrain has announced its intention to drill 900 oil wells over the next five years. This will require a lot of work, including the building and maintenance of oil rigs.

• Electrical Maintenance: Electricians and assistant electricians are responsible for maintaining and repairing electrical equipment, such as generators, alternators, and engine parts. They must be skilled troubleshooters, able to solve unexpected problems and address failures.
• Mechanical Maintenance: Mechanics and their assistants maintain and repair mechanical equipment, including diesel engines and hydraulic systems. They are also troubleshooters, ensuring the smooth operation of the rig by addressing any mechanical issues.
• Air-Conditioning Maintenance: Air-conditioning and refrigeration technicians are in charge of maintaining and repairing cooling systems, which are crucial for comfort and safety in the harsh offshore environment.
• Supervision: Maintenance supervisors oversee all maintenance activities and personnel. They ensure that electrical and mechanical equipment, instruments, tools, and machinery are in good working order. Supervisors may be required at any time to address urgent issues.
• Cleaning: Cleaning is an essential aspect of maintenance, and workers are responsible for keeping designated areas clean and tidy, removing rust, and painting.
• Structural Maintenance: Welders play a vital role in maintaining and repairing metal structures. Their competence is critical to the overall safety of the rig.

These are just a few examples of the diverse range of maintenance activities required to keep offshore oil rigs operational. Each role is essential to ensuring the efficient and safe extraction of oil and gas, and workers are well-compensated for their expertise and dedication.

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