Bapco ups production target for Sitra refinery
3 March 2023
Bahrain's $7bn Bapco modernisation programme (BMP) is expected to boost total throughput at the Sitra refinery to 400,000 barrels a day (b/d) of oil, 20,000 b/d more than the design’s original nameplate capacity.
This will increase the refinery’s capacity by nearly 50 per cent compared to the existing 267,000 b/d.
The decision to push to operate the refinery above the original design capacity was made after completing readiness assessments, Mark Thompson, the chief executive of Bahrain’s state energy conglomerate Nogaholding, told MEED on the sidelines of the International Energy Week conference in London.
“The original design capacity was 380,000 barrels a day, but we are already pushing for 400,000 barrels of oil a day,” he said.
“As we have been looking at it, and doing our readiness assessments, it has become clear that there is room in the design to push it a little bit more.”
Thompson says that the new units at the Sitra refinery will be operational and the facility will be actively processing 400,000 b/d before the end of 2024.
He said: “We will be starting to commission some of the utility packages this summer and we are really looking to try and introduce crude as early as this year but, of course, it is a very complex multi-unit process.
“There are seven units in a row that we have to start up, from the crude unit forward.
“We do expect, even if we are very generous with time, it will be well into 2024 until we get to full capacity.”
Thompson said that the BMP represented a total investment of $7bn.
Refinery modernisation
The Sitra refinery is 90 years old and has crude units on the front end that are 75 years old and still operational.
The BMP project has been delayed several times in recent years and was previously expected to be completed in 2022.
The BMP will increase the complexity of the Sitra refinery to 7.1 on the Nelson complexity index (NCI).
The NCI is a measure to compare the secondary conversion capacity of a petroleum refinery with the primary distillation capacity.
The index provides an easy metric for quantifying and ranking the complexity of various refineries and units. The Sitra refinery is currently rated 6.3 on the NCI.
The BMP will also introduce further depth of conversion and upgrading of heavy oil.
The scope of the BMP originally included:
- Construction of two crude distillation units with a 225,000 b/d capacity
- Construction of two vacuum units with a 100,000 b/d capacity
- Construction of two vacuum gas oil (VGO) hydrocracking units with a 58,000 b/d capacity
- Construction of two diesel hydrotreating units with a 50,000 b/d capacity
- Construction of a residue hydrocracking unit with a 65,000 b/d capacity
- Construction of a tail gas treatment unit
- Construction of a sour water stripper unit
- Construction of an amine recovery unit
- Construction of a bulk acid gas removal unit
- Construction of two hydrogen plants, each with a 125 million standard cubic feet a day (scf/d) capacity
- Construction of three sulphur recovery units with a 250 metric tonnes a day capacity
- Construction of two saturated gas plants, each with a capacity of 30 million scf/d
- Installation of safety and security systems
US oil company Chevron is acting as a consultant on the Sitra expansion project while the project management consultant is Australia’s Worley Parsons.
France’s Tecnip and US-based Bechtel undertook the front-end engineering and design for the project.
The main engineering, procurement and construction contract was awarded in November 2017 to a joint venture of South Korea’s Samsung Engineering, Technip and Spain’s Tecnicas Reunidas.
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At the Future Investment Initiative (FII) in Riyadh in 2019, a head of a regional family business voiced a guarded concern. The worry was that the scale and speed of the Public Investment Fund’s (PIF’s) projects were crowding out the private sector, leaving little space for traditional players to compete.
Fast forward more than six years and much has changed. In 2026, the era of the PIF acting as the principal driver for development is giving way to a new phase where the private sector is taking a more active role.At February’s Private Sector Forum (PSF), officials acknowledged that the kingdom’s priorities have evolved since 2016. This has led to reprioritisation, including the indefinite postponement of the 2029 Asian Winter Games in Trojena and the scaling back of projects such as The Line – moves framed as strategic adjustments amid global economic uncertainty.
With the 2034 Fifa World Cup and Expo 2030 on the horizon, alongside the rapid ascent of artificial intelligence, Riyadh is right to realign its capital. It is far more reassuring to see a government adapt its strategy to a changing global economy than to blindly pursue an outdated plan. The PIF, now managing $913bn in assets, is seeking ‘escape velocity’, allowing sectors such as tourism and real estate to stand independently.
The private sector is beginning to respond. Recent agreements signed at the PSF – ranging from King Salman International airport’s mixed-use developments to Roshn’s logistics partnership with Agility – show that local and regional firms are rising to the challenge.
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But overall, the tide is turning. The crowding out fears of 2019 have been replaced by a drive to get the private sector more involved, and while it will take time for momentum to fully develop, the process of passing the baton has already begun.
READ THE MARCH 2026 MEED BUSINESS REVIEW – click here to view PDFRiyadh urges private sector to take greater role; Chemical players look to spend rationally; Economic uptick lends confidence to Cairo’s reforms.
Distributed to senior decision-makers in the region and around the world, the March 2026 edition of MEED Business Review includes:
> RAMADAN: Data disproves the Ramadan slowdown story> INDUSTRY REPORT: Chemicals producers look to cut spending> INDUSTRY REPORT: Global petrochemical project capex set to rise until 2030> MARKET FOCUS: Egypt’s crisis mode gives way to cautious revival> LEADERSHIP: Delivering Saudi Arabia’s next phase of rail growth> INTERVIEW: Abu Dhabi’s Enersol charts acquisitions pathTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/15842555/main.gif -
Read the March 2026 MEED Business Review3 March 2026
Download / Subscribe / 14-day trial access Saudi Arabia’s priorities have shifted over the past decade, with officials at February’s Private Sector Forum confirming a reprioritisation since 2016 that includes postponing the 2029 Asian Winter Games in Trojena and scaling back projects such as The Line in response to global economic uncertainty.
In 2026, the Public Investment Fund’s role as the main driver of development is shifting towards greater private sector involvement, a transition examined by MEED editor Colin Foreman in the latest issue of MEED Business Review.March’s market focus is on Egypt, where the country’s crisis mode is giving way to a cautious revival.
This edition also reports that the region’s downstream sector may face subdued project spending in 2026 due to flattening demand and weak margins.
In the latest issue, we disprove the Ramadan slowdown story, present exclusive leadership insight from Jacobs on delivering Saudi Arabia’s next phase of rail growth and outline some important lessons learnt from a power plant decommissioning. We also talk to senior executives at Enersol, Lamar Holding and Metito.
We hope our valued subscribers enjoy the March 2026 issue of MEED Business Review.

Must-read sections in the March 2026 issue of MEED Business Review include:
> AGENDA: Saudi Arabia’s private sector picks up the baton> RAMADAN: Data disproves the Ramadan slowdown story
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> Chemicals producers look to cut spending
> Global petrochemical project capex set to rise until 2030> LEADERSHIP: Delivering Saudi Arabia’s next phase of rail growth
> POWER: Lessons learnt from a power plant decommissioning
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> INTERVIEW: Lina Noureddin, CEO of Lamar Holding, on the evolving PPP landscape
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Firms prepare Port of Duqm consultancy bids3 March 2026
Oman’s Port of Duqm has issued tender notices inviting consultants to bid for two packages by mid-March.
The scope of the first tender covers the consultancy services for inspection, scope preparation and supervision of the sewage treatment plant.
The bid submission deadline is 18 March.
The scope of the other tender includes the consultancy services for port marine traffic assessment/simulation and impact study.
The bid submission deadline for this package is on 17 March.
Both tenders were floated late last month.
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Diriyah awards Pendry superblock package3 March 2026

Saudi Arabian gigaproject developer Diriyah Company has awarded an estimated SR2.5bn ($666m) contract to build the Pendry superblock package in the second phase of the Diriyah Gate development (DG2).
The contract was awarded to the local firm Saudi Constructioneers.
The Pendry superblock encompasses the construction of a hotel, known as the Pendry Hotel, along with residential and commercial assets.
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Contractors had submitted final proposals for a contract in September last year, as MEED reported.
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Local firm to develop $598m Muscat tourism project3 March 2026
Oman’s Ministry of Heritage & Tourism has signed an agreement with local firm Sorouh Al-Qurm Real Estate Company to build an integrated tourism complex in the Al-Qurm area of Muscat.
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The agreement was signed by Sayyid Ibrahim Bin Said Al-Busaidi, minister of heritage and tourism, and Khaled Khudair Mashaan, chairman of Al-Argan International Real Estate Company, who signed as the authorised representative for Sorouh Al-Qurm Real Estate Company.
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