Bahrain increased its oil imports from Saudi Arabia by more than 15,000 barrels per day in September to meet higher demand as the Gulf country’s own crude output remained unchanged, official figures showed on Wednesday.

From around 220,408 bpd in September 2009, the country’s crude oil imports from nearby Saudi Arabia rose by about 6.8 per dent to 235,460 bpd in September 2010, an increase of 15,052 bpd, showed the figures by the government’s National Corporation for Oil and Gas (NCOG).

The report showed the increase was to cater for higher domestic and foreign demand for oil products as crude supplied to the refinery swelled from around 255,501 bpd in September 2009 to 266,410 bpd in September this year.

Total refining output grew from 259,053 bpd to 272,212 bpd while domestic sales of refined products edged up slightly from 25,000 to 26,000 bpd. But exports surged from 223,230 bpd to 236,437 bpd in the same period.

The report showed Bahrain’s gas production rose by around 3.1 per cent from 1.497 billion cubic feet to 1.544 billion cubic feet during that period.

Unlike other Gulf nations, Bahrain’s hydrocarbon resources are negligible although it was the first country in the region to strike oil nearly 80 years ago.

Its proven crude oil reserves are estimated at around 130 million barrels and natural gas at nearly 92 billion cubic metres.

To face a steady rise in domestic consumption, Bahrain has been locked in talks with neighbouring Qatar to import gas. A NCOG delegation has also visited Moscow recently to discuss possible purchase of Russian gas.

“NCOG has undertaken several initiatives to ensure the country’s gas needs through holding discussions with some countries for the import of gas…the recent visit a NCOG delegation to Moscow and its discussions with senior officials there were within those initiatives,” the report said.

Given its low hydrocarbon resources, Bahrain’s economy is considered as the most diversified in the Gulf as it relies on other key sources of income, including taxes, aluminium exports and its being the region’s financial hub.

But in its latest review of the Island nation, the International Monetary Fund (IMF) urged Bahrain to make further diversification efforts.

“(IMF) Directors supported the authorities’ contingency plan to reactivate delayed investment spending if oil prices were to rebound above the budget price. Directors stressed, however, that a balance needs to be struck between preserving fiscal sustainability and maintaining growth, and encouraged the development of a medium-term fiscal framework,” the IMF said.

“To ensure medium-term fiscal sustainability, Directors stressed the need to diversify the revenue base, and supported the planned introduction of a value added tax, corporate income tax, and excises to reduce the budget’s dependence on oil revenue.”