Bapco Energy of Bahrain has declared a state of force majeure on its operations as of Monday following an attack that targeted one of its refinery units. The Sitra refinery, which is part of Bapco, imports crude oil from Saudi Arabia through a pipeline that connects the two countries and has a production capacity of 380,000 barrels per day. This announcement signifies a serious disruption in operations, potentially affecting fuel supplies in the region.

Bapco has been a major source of fuels, including diesel, jet fuel, and naphtha, for countries in the Middle East and Asia. Recently, the company increased the refining capacity of the Sitra refinery from 265,000 barrels per day to 380,000 barrels per day to meet rising demands. Despite this attack, Bapco reassured that all local market needs are fully secured according to premeditated plans, ensuring supply continuity without impact on local demand.

The incident has raised concerns in global markets regarding the potential for more energy companies in the Gulf region to declare force majeure due to similar security threats. Just days prior, Qatar Energy announced its own force majeure, and reports indicate that Kuwait Petroleum Corporation also declared a state of force majeure and reduced its production. This pattern suggests an escalating risk to energy operations and supplies in the region, likely causing increased volatility in global energy markets and pricing.