Petrofac consortium wins first phase work of $4bn oil project in Kuwait

A consortium of Petrofac and Consolidated Contractors Company (CCC) has secured a contract for the first phase of Kuwait Oil Company’s (KOC) Lower Fars heavy oil development programme, which is expected to cost over $4bn.

The contract requires the consortium to work on greenfield and brownfield facilities for the project, which is located in northern part of Kuwait.

It includes engineering, procurement, construction, pre-commissioning, commissioning (EPC), start-up and operations and maintenance work for the main central processing facility (CPF) and related infrastructure as well as the production support complex.

Plans include construction of a 162km pipeline to transport the heavy crude from the CPF to South Tank Farm situated in Ahmadi.

KOC has the option to send the crude to the planned Al-Zour refinery in the south of Kuwait.

The EPC part of the project includes ten months commissioning and ramp-up work. It is anticipated to be completed in about 52 months after which the consortium will hand over the plant to KOC.

Petrofac and CCC will continue to provide a team at the site for an additional eight months to perform operations and maintenance.

The first phase of the Lower Fars heavy oil project is estimated to produce about 60,000 barrels of oil per day.

Petrofac onshore engineering & construction (OEC) business managing director Subramanian Sarma said: "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.

"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."

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