|
||||||||||||
The new oil discovery in Bahrain and its effect on real estate development |
||||||||||||
|
This week a major oil discovery was uncovered in Bahrain by authorities. The new oil discovery is considered the biggest in the history of the island kingdom and the second in its history after the first discovery which was in 1932. It’s worth mentioning that Bahrain is the first GCC country to announce an oil discovery, shortly, all other states followed to become the one of the world’s most richest regions. The new field is expected to hold around 80 billion barrels, if operated, the new field will boost the kingdom’s reserve and will absolutely cover its domestic consumption. The discovery was announced by Bahrain’s Higher Committee for Natural Resources and Economics Security in offshore Khaleej Al Bahrain basin. Commenting on the historic discovery, Oil Minister Sheikh Mohamed bin Khalifa Al Khalifa said that the new finds are substantial to support the kingdom’s long-term development process. He said also that the authorities are capable of extracting tigh oil and deep gas. According to the statement, the new discovery includes 80 billion barrels of oil in addition to 13.7 trillion cubic feet (tcf). The new fields are located off Janabiyah on the west coast of the kingdom near the current existing oil fields of Bahrain. It’s worth mentioning that Bahrain is the smallest oil and gas producer between GCC states. It has reserves of 125 million barrels and natural gas reserves of 92 billion cubic metres (3.25 tcf). The kingdom’s production rate is 45,000 barrels per day all from the Awali field located off the western shore of the kingdom. Moreover, Bahrain receives 150,000 barrels per day from Abu Safah field which it shares with Saudi Arabia. The new find won’t only transform the energy field, but it will expedite the whole development process of Bahrain’s economy and will boost other sectors including real estate, infrastructure, and others. The discovery will definitely support Bahrain’s current economic trajectory that aims developing non-oil sectors to increase economic diversity and boost income. Bahrain properties sector will definitely get the biggest focus since it is already vibrant and very promising. The field operation and the start of production will spur real estate activity in respect of transactions and new project. New commercial projects are currently under development in the kingdom including the new IKEA mall which is built in Salmabad and Mourjan Mall in Juffair. Last November, Bahrain celebrated the inauguration of Avenues Mall which displays a new unprecedented shopping and entertainment experience in the kingdom. The new Avenues Mall is expected to be a new traction point in the kingdom attracting visitors from everywhere around the GCC especially from the Eastern Region of Saudi Arabia. For those probing Bahrain real estate market and waiting for the best opportunity to snatch a deal, now is the most perfect time. The market has great expectations for future, moreover, prices are convenient and in hand for most investors. Experts believe that after operating the new field, Bahrain’s property market is expected to enter a new phase where property prices will surge to an unprecedented rates. |
||||||||||||
