Phase one of Kuwait Oil Company’s (KOC) $4.3bn Lower Fars Heavy Oil (LFHO) field development project is proceeding to schedule, according to a source close to the project.

“All subcontractors have been mobilised and the construction of temporary facilities is progressing,” the source said.

The temporary facilities include workshops and accommodation camps, according to the source. Site preparation activities are also ongoing.

A consortium of UK-based company Petrofac and Athens-based Consolidated Contractors Company (CCC) won the $4.2bn contract for the project in January 2015.

In a statement issued on 20 January, Petrofac said the engineering, procurement and construction (EPC) element of the project is due to be completed in 52 months, after which the plant will be turned over to KOC.

The scope of work covers greenfield and brownfield facilities and includes engineering, procurement, construction, pre-commissioning, commissioning, start-up and operations and maintenance work for the main central processing facility (CPF) and associated infrastructure as well as the production support complex.

This includes a pipeline of almost 162 kilometres, which will transport the heavy crude from the CPF 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.

When fully operational, it is expected the initial phase of the Lower Fars heavy oil project will produce about 60,000 barrels a day (b/d) of oil.