In 1999, the government of Bahrain announced it would merge its two companies, Banoco and Bapco. The Supreme Oil Council announced the intent to merge the two companies into a single new entity to be called the Bahrain Petroleum Company.
“The government has decided to consolidate the oil industry in Bahrain and to merge the upstream and downstream sectors, thus it will merge Banoco and Bapco. This provides an opportunity to improve efficiencies and benefit from the economies through integration of services,” said Lubbe.
” In the past, Banoco handled the exploration and production of crude oil and marketing of products, whereas Bapco handled refining, shipping and administration of general facilities. “By making it one company, we can streamline and improve productivity and then optimize the value chain – from exploration, production supply to refining, marketing, etc., so that we can maximize the profit from the total operation,” Lubbe said.
“The Bahraini Government is our shareholder. We know from benchmarking analysis how we rate in competitiveness in terms of international markets. We have state-of-the-art practices.
“As other countries change to make products environmentally friendly, we will have to follow. And Bahrain also has its own set of environmental standards,” explained Lubbe, who admits a tremendous appreciation of Bahrain’s eco-tourism. “The variety of birds on this island is astonishing; we’ve spotted migratory birds here that we’ve often seen in Africa,” he said.