Airport Concessions

Bahrain is experiencing an unprecedented era of growth in aviation fuel supply. In April 2016 BAC Jet Fuel Company (BAC Jet) was established as a joint venture between nogaholding and Bahrain Airport Company (BAC) with a vision to establish a more streamlined and efficient aviation fuel supply, operation and maintenance process.

The top priorities for BAC Jet were building a new fuel depot, and expanding the fuel hydrant system for delivery of jet fuel to aircrafts, both at Bahrain International Airport.

To make this vision a reality, there was a need for a suite of connected agreements. This involved a large number of parties, their consultants and technical, legal and insurance advisers as well as a number of multinational companies with their senior management outside of Bahrain. Coordinating and facilitating a compromise acceptable to all parties was critical to keep momentum going during over a year of negotiations.

“Newton Legal, as adviser to both nogaholding and Bapco, had a central role in making this happen.”

The main agreements provided for:

  • A new concession for jet fuel supply at the airport, granted by BAC to Bapco, Chevron and BP
  • The sale of the airport hydrant by Bapco, Chevron and BP to BAC Jet
  • The appointment of Bafco by BAC Jet to operate and maintain the airport hydrant
  • The grant by BAC Jet of the right to use the airport hydrant to Bapco, Chevron and BP.

In April 2017, the signing ceremony for the various agreements was attended by the Minister of Oil, HE Shaikh Mohamed bin Khalifa Al Khalifa, and the Minister of Transportation and Telecommunications, HE Engineer Kamal bin Ahmed Mohammed.

“The agreements mark a turning point for the Bahrain aviation industry.”

“The agreements mark a turning point for the Bahrain aviation industry,” said BAC CEO, Mohamed Yousif Al Binfalah. “This restructuring brings together a wealth of local and international expertise in line with the Prime Minister’s vision for a more effective and responsible aviation industry…We look forward to the beginning of a new era, with more streamlined processes, and we embrace this joint effort to further improve the industry as a whole.”