US engineering giant KBR has been awarded a key contract to design the next expansion phase of Kuwait’s South Ratqa heavy oil field. The move signals a renewed push to advance the country’s long-stalled ambitions to diversify its production base and significantly boost its heavy crude output.

Kuwait Oil Co. (KOC) has tasked KBR with providing front-end engineering design (FEED) for the project. This is a critical preliminary step that defines a project’s technical specifications and scope, setting the stage for multi-billion-dollar construction tenders. The move aims to revive a multi-stage development programme that has faced significant delays since its first phase came online.

KBR said the project aligns with KOC’s long-term strategy to enhance its energy security and national prosperity. “We are honored by KOC’s longstanding trust in KBR and are committed to support this strategic project,” said Jay Ibrahim, president of KBR Sustainable Technology Solutions, adding that the company continues to “deliver services designed to meet the dynamic market requirements.”

The South Ratqa field is part of the broader Lower Fars Heavy Oil Project. Though the Ratqa asset was discovered in the late 1970s, efforts to develop the challenging resource were largely stifled until the UK’s Petrofac was finally awarded a $4.2bn contract to execute the first phase in 2015. This initial stage, which began operations in February 2020, reached a production plateau of 75,000 barrels per day (bpd).

However, progress stalled shortly after. In September 2020, KOC was reported to have cancelled a $400mn contract to drill new wells, casting doubt on its ambitious expansion timeline. The original master plan envisaged output from South Ratqa growing to 120,000 bpd by 2026/27, with heavy oil from the nearby Umm Niqa field climbing to 80,000 bpd over the same period. Subsequent phases were planned to lift total output from the two fields to 430,000 bpd.

The award of the new FEED contract to KBR marks the most significant step in years towards realising these goals. The industry will now watch closely for a final investment decision and the subsequent tendering of the main construction contracts.