Petrofac wins first phase of $4bn Kuwait Oil Company contract

Oil and gas services group Petrofac has won a $4bn project for Kuwait's state oil company, having received an award notification for the first phase of the Lower Fars heavy oil development programme in the north of the country.

Part of the Kuwaiti state oil company, Kuwait Oil Company (KOC) has engaged a consortium led by Petrofac to complete initial services around the development, including engineering, procurement, construction, pre-commissioning and commissioning, start-up and operations and maintenance at Lower Fars, with a total project value of more than $4bn.

"This is a significant award for Petrofac in one of our core markets and complements the ongoing projects we have in hand for both KOC and Kuwait National Petroleum Company," said Subramanian Sarma, managing director of Petrofac's onshore engineering & construction (OEC) business.

"With a track record extending over the last 14 years, it represents our eleventh project in the country and reinforces the strategic importance of Kuwait as part of our OEC portfolio."

Petrofac said the complex included a pipeline of almost 162 kms which will transport the heavy crude from the CPF to South Tank Farm located in Ahmadi, from where KOC has the option to send it to the proposed Al-Zour refinery in the south of Kuwait.

The EPC element of the project, which includes 10 months commissioning and ramp-up work, is anticipated to be completed in approximately 52 months following which the plant will be turned over to KOC.

When fully operational it is expected that the initial phase of the Lower Fars heavy oil project will produce around 60,000 barrels of oil a day.