Good fiscal terms needed to make Bahrain oil discovery viable, say analysts - The National

Good fiscal terms needed to make Bahrain oil discovery viable, say analysts - The National:

"Bahrain will need to prepare viable fiscal terms to attract international oil companies to develop unconventional reserves of oil and gas found offshore - the biggest discovery in the island kingdom in over eight decades, analysts said. “Bahrain’s National Oil and Gas Authority will be approaching international partners to contribute funding and technical expertise," said Tom Quinn, senior analyst, Middle East upstream at consultancy Wood Mackenzie. "However, Bahrain’s previous oil contracts had tough fiscal terms by international standards, and the international oil companies' partners made meagre returns. Therefore new fiscal terms will be needed to attract suitable partners.” An estimated 80 billion barrels of shale oil and up to 20 trillion cubic feet of tight gas have been discovered off the west coast of Bahrain in the biggest greenfield discovery for the kingdom since oil was discovered in 1932. Significant amounts of gas have also been found in pre-Khuff reservoirs beneath the historic Bahrain Field, where the first well was spudded in the early thirties."



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