Petrofac has won a $4 billion project in Kuwait.
The international oil and gas services provider’s contract is for the first phase of Kuwait Oil Company’s Lower Fars heavy oil development programme.
Petrofac is leading a consortium with Greece-based Consolidated Contractors Company as its partner.
The work covers engineering, procurement, construction, commissioning, start-up and operations and maintenance for the main central processing facility and associated infrastructure, as well as production support for the development in the north of the country.
It includes a 162km pipeline that will transport the heavy crude to South Tank Farm in Ahmadi. The Kuwait Oil Company then has the option to send it to the proposed Al-Zour refinery in the south of Kuwait.
The project is anticipated to be completed in 52 months, after which the plant will be turned over to Kuwait Oil Company.
Petrofac and CCC will continue to provide an integrated team at the site for another eight months to undertake operations and maintenance.
It is expected that the initial phase of the Lower Fars heavy oil project will produce around 60,000 barrels of oil per day.
Subramanian Sarma, managing director of Petrofac’s onshore engineering and construction business, 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 11th project in the country and reinforces the strategic importance of Kuwait as part of our OEC portfolio.”
Petrofac’s shares rose by 17.50p to 643.50p.