THE MINERAL INDUSTRIES of BAHRAIN, KUWAIT, OMAN, QATAR, the UNITED ARAB EMIRATES, and YEMEN by Philip M
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THE MINERAL INDUSTRIES OF BAHRAIN, KUWAIT, OMAN, QATAR, THE UNITED ARAB EMIRATES, AND YEMEN By Philip M. Mobbs BAHRAIN Information Administration, July 2000, Bahrain—Oil, accessed June 7, 2001, at URL http://www.eia.doe.gov/emeu/cabs/ In 2000, strong international demand lead to significantly bahrain.html). Production of crude oil from the Awali Field, higher than expected international petroleum prices, which which was Bahrain’s sole oilfield, reportedly increased slightly benefited Bahrain’s oil-based economy. Bahraini exports of to nearly 38,000 bbl/d (Rashid H. Al-Dhubaid, Ministry of Oil crude oil and refined petroleum products, which were valued and Industry, written commun., June 10, 2001). The BAPCO at $4.0 billion1 in 2000, accounted for 70% of Bahrain’s total refinery supplemented throughput of Bahraini crude oil with export earnings of $5.7 billion compared with 1999 when imports, which included more than 140,000 bbl/d from the exports of crude oil and petroleum products were valued at offshore Abu Saafa Field in Saudi Arabian waters (Everett- $2.5 billion and accounted for 62% of total export earnings. Heath, 2001a). In 2000, other mineral exports were valued at $211 million Bahrain has been producing crude oil from the Awali Field (Bahrain Monetary Agency, 2001). The nation’s gross domestic since 1932. Compagnie Générale de Géophysique of France was product (GDP) was estimated to have increased by 5% in 2000 contracted to study the remaining production potential of the compared with 1999 because of the surge in oil prices (Evertt- field. Additional petroleum exploration by Chevron Corp. and Heath, 2001a). Texaco Inc. of the United States was underway. Aluminium Bahrain B.S.C. (ALBA) completed a facilities Bahrain National Gas Co. B.S.C. (Banagas) had an input upgrade at its marine terminal. The new facilities included capacity of 8 million cubic meters per day at its liquefied two 50,000-metric-ton alumina silos and a jetty capable of petroleum gas (LPG) plant. Banagas’ two gas-processing trains handling ships of up to 60,000 deadweight tons (dwt). The old near Awali and Jabal al-Dukhan recovered propane, butane, and terminal facilities were limited to ships of 30,000 dwt or less. naphtha from natural gas produced from the Abu Saafa and the The construction of a 450,000-metric-ton-per-year (t/yr) coke Awali Fields. The resultant dry gas was used as an industrial fuel calcining plant continued. ALBA planned to use imported green by ALBA, Banagas, and BAPCO (Bahrain National Gas Co. coke to produce anode-grade calcined coke, which, in turn, B.S.C., [undated], Our process, accessed July 6, 2001, at URL would be used to produce anodes for the aluminum smelter http://www.banagas.com.bh/b_processmain.html). (Aluminium Bahrain B.S.C., 2001, A review of 2000, accessed More-extensive coverage of the mineral industry of Bahrain is July 7, 2001, at URL http://www.aluminiumbahrain.com/ in the 1998 Minerals Yearbook, volume III, Mineral Industries review/projects.htm). The feasibility of adding a fifth potline of Africa and the Middle East. and expanding ALBA’s nominal capacity to 750,000 t/yr from 500,000 t/yr was under active Government consideration KUWAIT (Mining Journal, 2000). Also in 2000, Gulf Aluminium Rolling Kuwait’s economy revolved around the production and Mill Co. B.S.C. began the installation of a 6,000-t/yr foil refining of crude oil. In 2000, the petroleum and natural mill at its 120,000-t/yr-capacity aluminum rolling mill (Gulf gas sector contributed about 48% of the GDP and 93% of Aluminium Rolling Mill Co. B.S.C., 2000, History, accessed Government revenue. The GDP was estimated to have increased July 6, 2001, at URL http://www.garmco.com/page3.htm). to $37.4 billion2 at current prices in 2000, compared with Gulf Industrial Investment Co. pelleted imported iron ore. $29.3 billion in 1999 (Central Bank of Kuwait, 2001, Table A). Pellets from its 4-million-metric-ton-per-year (Mt/yr) plant at Kuwait was the world’s 13th leading oil producer (U.S. Energy Al-Hidd were exported for use in direct-reduction plants. Information Administration, 2001). Cement was produced from imported clinker and raw In 2000, total exports were valued at $19.4 billion, of which materials at the Hundai Cement Factory. The plant’s three oil exports accounted for $18 billion and manufactured fertilizer clinker grinders had a rated capacity of 438,000 t/yr. exports accounted for $65 million. In 1999, total exports were The Government’s Bahrain Petroleum Company, B.S.C. valued at $12 billion, of which oil exports accounted for $10.8 (BAPCO) (closed) continued the upgrade of its 248,900- billion. Total imports in 2000 were estimated to be $6.8 billion barrel-per-day (bbl/d)-capacity refinery at Sitra (U.S. Energy 1Where necessary, values have been converted from Bahraini dinars (BhD) to 2Where necessary, values have been converted from Kuwaiti dinars (KD) to U.S. dollars at the rate of BhD0.377=US$1.00. U.S. dollars at the average exchange rate of KD0.307=US$1.00. 33.1 U.S. GEOLOGICAL SURVEY MINERALS YEARBOOK—2000 (Central Bank of Kuwait, 2001, Table A, Table 40). the manufacturing of cement. Construction continued on Kuwait Cement Co.’s 1.8-Mt/yr Gold was mined from the Rakah deposit near Yanqui. grey clinker kiln. The kiln will burn imported limestone, and the The plant at Rakah processed about 100,000 t/yr of ore. The output will be processed in Kuwait Cement’s existing clinker recovered gold doré and copper-refinery slimes that contained grinding mills. Cement clinker imports were expected to end gold and silver were exported to be refined. Oman Mining Co. once production is established (Bell and others, 2001). LLC fed its copper smelter and refinery operation at Sohar with Petrochemical Industries Co. (PIC) proposed to upgrade the imported copper concentrates. In 2000, National Mining Co. urea plant at Shuaiba to 1,750 metric tons per day (t/d) from of Oman explored for copper, gold, and silver near Sohar. The 1,100 t/d and the ammonia plant to 880 t/d from 800 t/d. PIC Metal Mining Agency of Japan wrapped up its exploration for also planned to construct a 2,000-t/d methanol plant (Middle copper and gold in the South Batinaha area. East Economic Digest, 2001h). Construction of an industrial port at Sohar to service the As international demand for petroleum increased in 2000, mineral industry continued during 2000. A number of mineral- Kuwait increased crude oil production. Additional production processing projects were under consideration; these included capacity was being installed as crude oil Gathering Center an aluminum smelter at Sohar, the construction of a 2,000-t/d 25 came on-line in March. China Petroleum Engineering & ammonia plant and a 3,500-t/d urea plant at Sohar for Bahwan Construction Corp. was building the 190,000-bbl/d-crude- Trading Group, a ferrochrome project, a 5,000-t/d methanol oilcapacity Gathering Center 27 at Umm Gudair and the plant at Sohar for Oman Oil Co., Oman Refining Co.’s 75,000- 200,000-bbl/d-crude-oil-capacity Gathering Center 28 at the bbl/d oil refinery at Sohar, the expansion of the Sharq Sohar Minagish Field (Middle East Economic Digest, 2001c). Proven Steel Rolling Mills to 216,000 t/yr from 180,000 t/yr, and a 115- crude oil reserves at the beginning of the year were estimated t/d Claus unit to recover sulfur. Also proposed was a 248,000- by the U.S. Energy Information Administration to be 96.5 t/yr ammonia plant and a 1.6-Mt/yr granulated urea plant at billion barrels (Gbbl) (including 2.5 Gbbl in the Neutral Zone). Sur. Indian Farmers Fertiliser Co-operative Ltd. of India joined Natural gas reserves were estimated to be 1.5 trillion cubic Oman Oil Co. in the Sur ammonia/urea project. Rashtriya meters (U.S. Energy Information Administration, August 2000, Chemicals and Fertilisers Ltd. of India had withdrawn from the Kuwait—Energy overview, accessed May 11, 2001, at URL venture in 1999 (Bulk Materials International, 2000a, b; Middle http://www.eia.doe.gov/emeu/cabs/kuwait.html). East Economic Digest, 2001e, i, j; Metal Bulletin, 2000c; Stell, The proposed redevelopment of the Abdali, the Bahrah, the 2000; Alexander’s Gas & Oil Connections, July 7, 2000, Oman Ratga, the Raudhatain, and the Sabriyah Fields by international invites tenders for new refinery, accessed August 7, 2000, at oil companies known as “Project Kuwait” remained stalled in URL http://gasandoil.com/goc/news/ntm02744.htm; Arif Ali, 2000. Petroleum product output also flagged after the June 25 November 19, 2000, Oman plans heavy industrial investment explosion at the Mina al-Ahmadi refinery. in diversification bid, accessed May 14, 2001, at URL http: More-extensive coverage of the mineral industry of Kuwait is //www.gulf-news.com/articles/news.asp?ArticleID=2969). in the 1998 Minerals Yearbook, volume III, Mineral Industries Oman LNG LLC brought its two-train 6.6-Mt/yr- of Africa and the Middle East. productioncapacity liquefied natural gas (LNG) plant at Qalhat, about 200 kilometers (km) southeast of Muscat, on-line and OMAN began exporting LNG in 2000 (Oil & Gas Journal, 2000b). Petroleum and natural gas dominated Oman’s economy. In Oman LNG used about 70% of natural gas recovered in Oman. response to increased international oil prices, the Omani GDP The Government was attempting to reduce flaring of natural rose to $19.7 billion3 at current prices in 2000 compared with gas, and in 2000, the Government formed Oman Gas Co.