Bahrain just announced its biggest oil discovery in decades
- The island nation of Bahrain announced Wednesday that it discovered a shale reserve with at least 80 billion barrels of crude oil.
- Like other producers, Bahrain's government relies on oil revenues to fund itself, and its deficit was worsened by the oil crash that began in 2014.
- Halliburton will frack the shale reserve to evaluate how much oil in the find is actually extractable.
Bahrain announced on Wednesday that it discovered at least 80 billion barrels of crude oil in a shale reserve.
The island kingdom to the east of Saudi Arabia is the smallest and oldest energy producer in the Persian Gulf, according to Bloomberg.
Depending on how much is extractable, the discovery could beef up Bahrain's output in the region that includes heavyweights such as the United Arab Emirates and Iran. Like other producers, Bahrain's government relies on oil revenues to fund itself, and its deficit was worsened by the oil collapse that began in 2014.
Bahraini officials expect production from the well to be up and running within five years. The country currently produces about 50,000 barrels of oil per day, AFP reported.
An "agreement has been reached with Halliburton to commence drilling on two further appraisal wells in 2018, to further evaluate reservoir potential, optimize completions, and initiate long-term production," the statement added.
But Halliburton could find that only a fraction of what's underground is recoverable. According to Bloomberg, citing a local newspaper, the new discovery could one day supply 200,000 barrels per day.
Bahrain isn't part of the Organisation of Petroleum Exporting Countries, an oil cartel, but was one of 11 non-members that agreed to cut their output to help reduce a global oversupply of oil.
Receive a single WhatsApp message every morning with all our latest news: Sign up here.
- These SA towns and suburbs could be the next hotspots for R20 million homes
- There are now 3,200 dollar millionaires living in Paarl, Franschhoek and Stellenbosch
- Dogs see the world very differently from human beings — here's how it works
- This SA-born entrepreneur is helping to build a 'Tesla killer' – a car fully powered by the sun
- 31 things that make the Masters one of the quirkiest events in sports