His Majesty King Hamad bin Isa Al-Khalifa, The King of Bahrain issued on 13th December 2005 a Royal Decree, No. (78) with respect to the formation of the Board of Directors of the National Oil & Gas Authority.
The Decree provides that the National Oil & Gas Authority shall be the organization responsible for all matters related to the oil and gas in the Kingdom of Bahrain. The Authority aims at preserving the Kingdom’s oil and natural gas resources and at finding out alternatives for the optimum development of such resources and for obtaining the highest return thereon. It also provides that, in the course of attaining its objects, the Authority may carry out all necessary actions, particularly:
The Board of Directors of the National Oil & Gas Authority is formed in the following manner:
The term of office of the members shall be three years, extendable for other similar terms. The remunerations of the Board members will be determined by the Chairman of the Board. The Board of Directors shall issue rules and procedures regulating its functions and meetings, and entrusting assignments and responsibilities to the members. The Board of Directors may ask any person, or form subcommittees from among the members or others to perform any specific task to assist the Board in considering any matter falling within its functions.
The Board of Directors is the highest body of the Authority, and is responsible for making the Authority’s general policies, running its affairs, approving its major plans, and for monitoring and evaluating its performance. The Board may take any appropriate action to carry out the authority’s functions and to attain its objects provided for herein. The Board may authorize the Chairman to carry out some of such functions.
With the approval of the Council of Ministers, the Board of Directors shall issue the regulations, rules and decisions with respect to the Authority’s administrative, financial and technical matters, and shall establish the Authority’s organizational structure, as well as the employees’ functional regulations. The Authority’s Board of Directors may exercise all powers and take any necessary action for the management of the Authority, for the regulation of its business and for the attainment of its objects. To this end, the Authority may enlist the services of the best local international capabilities without having to comply with the Civil Service rules and regulations or with the financial treatment of its staff or experts.
The Chairman of the Board of the Authority shall oversee the Authority’s affairs, ensure the smooth running of business and implement the resolutions of the Board of Directors. The Chairman may delegate other Board members to carry out some of his functions:
a) The Authority shall have a financial allocation within the State’s Public Budget.
b) The financial year of the Authority shall begin and end with the financial year of the Government.
c) The Authority’s income shall consist of:
i. the financial allocation apportioned for it in the State’s public budget;
ii. the grants and donations, conditional or unconditional, accepted by the Board of Directors; and,
iii. any contribution that may be given by companies operating in the oil and gas sector.
d) In the application of the Penal Code, the Authority’s funds shall be considered to be public funds.