Petrofac Wins $4 Billion Contract for Kuwait's Heavy Oil Program

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--The $4 billion contract for the first phase of Kuwait Oil Company's (KOC) (Ahmadi, Kuwait) Lower Fars heavy oil development program has been awarded to Petrofac (LSE:PCF.L) (London, England).

Petrofac will partner with Consolidated Contractors Company (CCC) (Athens, Greece) to work on the project in northern Kuwait. The scope of the engineering, procurement and construction (EPC) contract covers greenfield and brownfield facilities, including engineering, pre-commissioning, commissioning, start-up, and operations and maintenance work for the main central processing facility (CPF), associated infrastructure and the production support complex.

Petrofac also will construct a 162-kilometer (km) pipeline to transport the heavy crude from the project's central processing facility to the South Tank Farm, located in Ahmadi, from where it can be sent to the proposed Al-Zour refinery in southern Kuwait.

"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 and construction (OEC) business.

"With a track record extending over the last 14 years, it represents our 11th project in the country and reinforces the strategic importance of Kuwait as part of our onshore engineering and construction (OEC) project portfolio," Sarma said.

The project is scheduled to be completed in about 52 months. The EPC work will include 10 months of commissioning and ramp-up at the site. When fully operational, the plant is initially expected to produce about 60,000 barrels of oil a day.

For related information, see December 2, 2014, article - Kuwait Invests $40 Billion in Clean Fuels, Refineries.

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