Bahrain oil company declares force majeure as Iran sets only refinery ablaze

MANAMA — Bahrain’s state energy company declared force majeure on its oil shipments on Monday after an Iranian attack set its only refinery ablaze, the state-run Bahrain News Agency reported. In its force majeure notice, Bapco Energies said its “group operations have been affected by the ongoing regional conflict in the Middle East and the recent attack on its refinery complex.” A strike targeting Bahrain’s sprawling Al-Ma’ameer oil facility caused a fire at the complex along with material damage, state media said on Monday, in the latest attack against Gulf energy installations. “Outbreak of a fire due to the Iranian aggression targeting a facility in Al Ma’ameer, with material damage reported but no casualties recorded, and the competent authorities have begun firefighting procedures,” BNA said in a post on X. The blaze had been brought under control. Videos widely shared on social media showed thick smoke billowing from the industrial zone housing the refinery.Iran’s stranglehold on the Strait of Hormuz has also all but stopped tankers from using the shipping lane between the Arabian Gulf and Gulf of Oman through which a fifth of the world’s oil is carried. Force majeure is a legal provision that frees parties from liability when failure to meet contractual obligations results from events beyond their control. The company said it could still meet domestic demand. The 90-year-old refinery was first reported damaged last week. Bapco had recently modernised the plant and boosted its capacity to up to up to 380,000 barrels per day, upgrading units capable of producing more jet fuel and diesel. QatarEnergy made a similar declaration last Wednesday after two of its liquefied natural gas facilities were struck, forcing a production pause and sending fresh volatility through global energy markets. The energy shock comes as Bahrain reported another Iranian drone attack on a residential area on the island of Sitra overnight, wounding 32 people including children. All of the wounded were Bahraini citizens and there were four “serious cases”, including children, the health ministry said in a statement carried by the state news agency. They included a 17-year-old girl who suffered severe head and eye injuries, and a two-month-old baby, according to the ministry. Also a separate Iranian drone attack damaged one of the kingdom’s desalination plants. Bahrain is an archipelago of 33 natural islands spanning approximately 760 square kilometres, roughly the size of Greater London, with a population of about 1.6 million, making it the third-smallest nation in Asia. It is one of the most densely populated countries on earth, and one of the Gulf’s smallest but most strategically significant oil producers. — Agencies