BAC JET Fuel Company holds important shareholder and board of directors meeting

In line with the directives of HRH the Prime Minister vesting the responsibility of building new fuel tanks inside the perimeter of Bahrain International Airport and decommissioning the current aviation fuel tanks situated in Arad to BAC Jet Fuel Company being a 50/50 joint venture between the airport operator, Bahrain Airport Company, and the manager of the oil, gas and petroleum assets of the government, Nogaholding, the first shareholder meeting of BAC Jet Fuel Company was held on 15 June 2016 at the offices of Nogaholding.

The shareholders meeting was attended by the new Minister of Oil HE. Sheikh Mohamed bin Khalifa Al Khalifa from Nogaholding’s side and the Minister of Transportation and Telecommunications HE. Kamal bin Ahmed from BAC’s side.

The shareholders also appointed an audit committee for BAC Jet in line with good corporate governance principles. The shareholders recommended the appointment of Pricewaterhouse Coopers as the first auditor of BAC Jet Fuel Company subject to agreement on terms and conditions. The shareholders authorized the board secretary to draft appropriate board and audit committee charters.

The shareholders received a presentation from Mott Macdonald, the appointed design and supervision consultant to the project, where a comprehensive update on the project was provided by the consultant.

The shareholders meeting was followed by the first meeting of the board of directors of BAC Jet Fuel Company where the board under the new chairman took a number of important decisions in relation to the project including the Company’s operational model, its business plan and the funding of the project. The directors approved the final draft of a number of agreements in relation to the project including an operation and maintenance agreement, a hydrant sale and purchase agreement and a license agreement.

On the occasion the new chairman, Mr. Majeed Al Ghassab, stated that the holding of these two important meetings marks the operational phase of the Company and authorizes essential project agreements to be signed by the Company with the current fuel concessionaires at the airport. This milestone ensures that BAC Jet Fuel Company supports the government’s directives regarding the fuel farm and ensures that they are transformed to reality within the time line provided by the government.

HE. Shaikh Mohamed and HE. Kamal Ahmed both commended the project and congratulated the Company on entering its operational phase. Both mentioned that the new fuel farm is a strategic project intended to grow and contribute to the national economy as a part of Bahrain’s Vision 2030.