The expansion contracts for Bahrain Petroleum Company (Bapco) are likely to be signed by the end of this year, said the oil minister.
"Bapco will choose the winning bid in the near future, with final contracts to be signed before the end of 2017," said oil minister Sheikh Mohammed bin Khalifa al Khalifa.
"More than 50 per cent of the construction and modernisation work in the southern part of the kingdom has already been completed and the pipeline is being buried in southern Bahrain and the project is in full swing as planned and budgeted," Sheikh Mohammed added.
The oil minister said the move was aimed at doubling the capacity of existing pipelines over 70 years ago.
"Oil will remain the most important commodity in the world. The Gulf region, which has the world's leading strategic location, will continue to have the largest oil reserves and the highest production rates," remarked Sheikh Mohammed.
The price estimated for a barrel of oil in the state budget for the fiscal years 2017-2018, he said.
Regarding construction of a liquefied natural gas (LNG) terminal, the oil minister said that work has begun on the project and is hoped to complete it by the end of next year.
In an interview, Sheikh Mohammed said a work plan is under way to study and develop a deep gas development plan, which includes digging wells on land for extraction.
"Once done, Bahrain will have three sources of gas, namely natural gas, deep gas and liquefied gas," he added.