Kuwait has awarded UAE-based Petrofac International and Greece-based Consolidated Contractors Company (CCC) a $4.2 billion contract to develop Lower Fars heavy oilfield in the north of the country.
The Lower Fars Heavy Oil Development Phase 1 project includes plans to produce 60,000 b/d of heavy crude by 2018 and to build the infrastructure facilities for further phases, the country’s central tenders committee has announced.
The single engineering, procurement and construction (EPC) tender includes five main parts covering a steam injection facility, production facilities, a support complex, tank farms and a 270,000 b/d pipeline to transport the heavy crude to the planned new refinery in the south of Kuwait.
In Phase 2, production is expected to double by 2020. The OPEC member, currently pumping around 2.8 million b/d, was planning to raise its output capacity to four million bpd in 2020 from 3.3 million b/d currently.
In 2014, Petrofac was awarded contracts worth US$12 billion to upgrade two of its three oil refineries in Kuwait and procedures have been underway to award contracts worth US$15 billion to build a new 615,000 b/d refinery.
When the two projects are completed by 2018-19, the refining capacity is expected to be boosted to 1.4 million b/d from 930,000 b/d now.
Source: Oil Review Middle East