By Alex MacDonald
LONDON--U.K.-based oil and gas services provider Petrofac
Ltd.(PFC.LN) said Tuesday it has won a contract to develop the
first phase of the Lower Fars heavy oil project in northern Kuwait
valued at more than $4 billion.
State-owned Kuwait Oil Company awarded the contract to Petrofac
and its partner, Greece-based Consolidated Contractors Company, to
develop the project's greenfield and brownfield facilities. This
includes engineering, procurement, construction, pre-commissioning,
commissioning, start-up and operations and maintenance work for the
main central processing facility and associated infrastructure, as
well as the production support complex.
Petrofac and CCC will build a pipeline of almost 162 kilometers
length which will transport heavy crude from the central processing
facility to South Tank Farm located in Ahmadi, from where KOC has
the option to send it to the proposed Al-Zour refinery in the south
of Kuwait.
The engineering and procurement part of the project includes 10
months commissioning and ramp-up work, is anticipated to be
completed in approximately 52 months following which the plant will
be turned over to KOC. Petrofac and CCC will continue to provide an
integrated team at the site for a further eight months to undertake
operations and maintenance alongside KOC.
"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 &
Construction division.
Petrofac's shares were up 2.7% at 643 pence a share as of 0818
GMT.
-Write to Alex MacDonald at alex.macdonald@wsj.com
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