Results are presented from studying the steam cracking of heavy oil at a temperature of 425°C and a pressure of 2.0 MPa over dispersed iron and molybdenum based catalysts in a slurry reactor. The catalysts are synthesized through the decomposition of water-soluble precursors of metal salts in situ. The yield of upgraded oil (the sum of liquid products) is found to grow with steam cracking, in comparison to thermal cracking (80 and 77%, respectively). The use of dispersed monometallic (iron- or molybdenum-containing) catalysts and a bimetallic catalyst for the catalytic steam cracking (CSC) of heavy oil increases the yield of SOPs. In addition, the yield of light fractions (Тb < 350°C) in the CSC process is found to grow in comparison to steam and thermal cracking, and the viscosity and density of products falls, relative to the initial feedstock.