Aquathermolysis is a promising method to upgrade heavy oil in reservoir conditions. However, application of catalysts can significantly promote transformation of the heavy fragments (resins and asphaltenes) and heteroatom-containing compounds of crude oil mixture into low-molecular-weight hydrocarbons. In this paper, the comparison study of the catalytic performance of the water-soluble metal salts such as NiSO4 and FeSO4 on the aquathermolytic upgrading of heavy oil samples produced from Ashal’cha reservoir was carried out at a temperature of 300 °C for 24 hours. Iron nanoparticles contributed to the highest viscosity reduction degree - 60% in contrast to the viscosity of the native crude oil sample. The viscosity alteration is reasoned by the changes in the group composition of heavy oil after catalytic (FeSO4) aquathermolysis, where the content of resins and asphaltenes were reduced by 17% and 7%, respectively. Moreover, the aquathermolytic upgrading of heavy oil in the presence of FeSO4 led to an increase in the yield of gasoline fraction by 13% and diesel fraction by 53%. The H/C ratio, which represents the hydrogenation of crude oil, increased from 1.52 (before catalytic upgrading) to 1.99 (after catalytic upgrading). The results of Chromatomass (GC-MS) and Fourier-infrared (FT-IR) spectroscopies confirmed the intensification of destructive hydrogenation of resins and asphaltenes in the presence of the water-soluble catalysts. According to XRD and SEM-EDX results, the metal salts are thermally decomposed during the aquathermolysis process into the oxides of corresponding metals and particularly sulfided by the sulfur-containing aquathermolysis products.