Petrofac, along with Greece-based Consolidated Contractors, won a contract Tuesday to build the first phase of Kuwait Oil Company’s Lower Far heavy oil development program.
The work includes greenfield and brownfield facilities, including engineering, procurement, construction, pre-commissioning, commissioning, start up and operations, maintenance work and associated infrastructure work.
UK-based Petrofac will also build a 100 mile long pipeline to transport heavy crude from the project’s central processing facility to its south tank farm where it can be sent to a refinery in southern Kuwait.
The project has a total value of $4 billion although Petrofac did not specify how much its first phase contract is worth.
The engineering, procurement and construction work will involve 10 months of commissioning and ramp up work at the site.
Petrofac expects the work to be completed in 52 months.
The initial phase of the Lower Fars heavy oil project is expected to produce about 60,000 barrels of oil per day.
“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 onshore engineering and construction portfolio,” managing director of Petrofac’s onshore engineering and construction business Subramanian Sarma said.