Dubai — Bahrain Petroleum has begun slowing operations at its Bapco refinery because of reduced feedstock from Saudi Arabia, a source close to the matter told Platts.
The drone attack in Saudi Arabia on Saturday has activated the refinery's contingency plans, the person said. Bapco is now actively looking for alternative feedstock to replace volumes from Saudi Arabia's state-owned Saudi Aramco, the person said. The reduction occurred after drones attacked oil facilities in Abqaiq and Khurais in Saudi Arabia.
"Bapco has obligations internationally and incorporates that with the realities of the inventories it has," the source said. The person added that the primary obligation is to meet demand from the domestic market.
Bapco is in contact with Aramco on replacement feedstock volumes, which could be sourced from Ras Tanura in Saudi Arabia, the person said. Another potential source would be other suppliers in the Gulf area. The source said Bapco had not received indication from Aramco about how long the reduced feedstock would last.
Contacting buyers to discuss or modify contractual obligations was "not an imminent concern" for Bapco, the source said, adding that Bapco could use strategic oil product reserves if needed for customers.
"Bahrain has strategic product storage and those are amply supplied," the source added. The Bapco refinery has a capacity of 267,000 b/d, according to Platts data.
--Miriam Malek, miriam.malek@spglobal.com
--Edited by Claudia Carpenter, claudia.carpenter@spglobal.com