Parliamentary Committee approves Bapco renaming amid Energy Reforms

TDT | Manama

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Parliament’s Financial and Economic Affairs Committee has approved a measure to rename Bahrain Petroleum Company as ‘Bapco Refinery, a Bahrain Shareholding Company (Closed) (B.S.C.)’, part of a broader effort to keep the firm’s identity in step with its parent company, Bapco Energies.

The change, enacted through Royal Decree-Law No. (19) of 2023, was referred to the committee for review.

Officials explained that the new name was necessary to unify the identities of companies under Bapco Energies, which itself underwent a rebranding last year. They added that updates to Bapco Refining’s bylaws were overdue, given the company’s expanded role in refining, trading, and exporting energy products.

Parliament was assured that all previous obligations tied to Bapco’s old name, whether legal or contractual, would remain intact under the new framework.

Under the new framework, Bapco Refining will keep its headquarters in Awali, with the flexibility to open branches abroad. The company’s financial structure also remains robust, with an authorised capital of BHD 755 million and issued and paid-up capital of BHD 320 million, divided into 320 shares valued at BHD 1 million each.

The decree also paves the way for operational changes, including the restructuring of Awali Hospital. Now managed by Awali Hospital Company, an independent entity, the facility remains majority-owned by Bapco Refining. Bahraini employees transitioned smoothly to new contracts while retaining their previous benefits. Meanwhile, expatriate staff were offered revised terms, and the hospital is expected to increase its Bahraini workforce in the coming years.

Another recent move involved the sale of a small stake in Bapco Refining to the American investment giant BlackRock for $4.6 million. Officials described the deal as a step towards raising the company’s international profile. However, speculation about a potential public share offering has been firmly dismissed, with no plans to list the company on any stock exchange.

Bapco Refining’s workforce has also seen adjustments, with 532 Bahrainis hired since the start of its refinery expansion project, while more than 300 foreign workers have been let go. Additional reductions in expatriate staff are expected as the company continues to favour Bahraini talent.