Bahrain has cleared the way for a major natural gas exploration project following unanimous approval by the Shura Council of a decree-law endorsing a concession agreement covering the Juba and pre-Tawil reservoirs in the historic Bahrain Field.
The decision, which follows approval by the Council of Representatives last week, enables advanced exploration activities under an agreement signed in August last year between the government, Bapco Energies and EOG Resources Bahrain Awali.
Oil and Environment Minister and Special Envoy for Climate Affairs Dr Mohammed Bin Daina said the project represents a significant step in strengthening Bahrain’s energy security and attracting long-term investment into the sector.
He said the foreign partner has committed around $200 million in investment, including $100 million dedicated to drilling operations. Three out of four planned wells have already been completed, with early indicators described as promising. A further $100 million will fund additional drilling in the next phase.
According to the minister, the concession will help secure gas supplies using advanced international technologies while also contributing to the development of local expertise. He added that the project is expected to create training and professional opportunities for Bahraini nationals, including technical placements abroad.
Officials also stressed the importance of attracting further international partners to support economic diversification and ensure long-term energy sustainability, particularly as Bahrain continues to rely heavily on hydrocarbons for public revenues.
Under the agreement, the foreign partner will finance the exploration phase at no cost to the state. If commercial viability is confirmed, production will proceed under a joint framework. Bahrain will receive a 10% royalty on net profits in addition to applicable taxation.
The Shura Council’s financial and economic affairs committee reviewed the decree before approval. Concerns were raised by lawmakers regarding the long-term outlook of oil and gas resources under the 40-year concession, particularly given the sector’s continued importance to the national budget.
Officials confirmed that the project includes strict regulatory provisions covering environmental protection, auditing, anti-corruption measures and local content requirements. The agreement also aims to facilitate technology transfer, with Bahraini engineers already participating in training programmes abroad.
The Council’s approval signals strong legislative backing for what officials describe as a strategic initiative aimed at reinforcing energy security, expanding investment inflows and developing national technical capabilities in one of the country’s most significant hydrocarbon regions.
In the same session, the Shura Council also approved a taxation agreement with Saudi Arabia, amendments to agricultural drainage laws introducing stricter penalties, Bahrain’s accession to an international maritime pollution convention, and a prisoner transfer agreement with Pakistan.
