Unlike most Middle Eastern countries oil production in
Bahrain peaked in 1971. The country’s only indigenous oil is derived
from the onshore and mature Awali field. Decline has been occasionally
reversed during periods of infill drilling and work is scheduled to
allow some recovery of output from 2010 to 2012.
A sharing arrangement with Saudi Arabia provides offshore oil to the
country from the Abu Safah field, which is delivered in cash so is
included in Saudi volumes. New output may arise from prospects located
in a formerly disputed area (with Qatar) but not in the short term.
Gas is produced from the Khuff reservoir beneath the Awali field. Some
expansion is possible as new infrastructure is created but output has
Oil consumption in Bahrain is flat with little potential
for growth in this developed country with declining exports.
Gas consumption is expected to increase as Bahrain implements
infrastructure projects. Accordingly the country has begun importing gas
from neighbouring Middle Eastern suppliers.