The BAPCO was set up in 1929 in Canada by Standard Oil Company of California for oil investigation exercises in Bahrain. It assumed control over Bahrain’s advantages of Gulf Oil. In 1930 it acquired the main oil concession in Bahrain. On 31 May 1932, the organization found the Awali oil field. In 1936 the Standard Oil Company of California consented to an arrangement with Texaco, which procured a half of BAPCO’s shares.
In 1975 over 60% BAPCO’s offers was obtained by the Government of Bahrain. In 1980, every one of BAPCO’s offers were assumed control by the Government of Bahrain. In 1999 the present Bahrain Petroleum Company was made when the Bahrain National Oil Company, set up in 1976, converged with BAPCO.