Oil & Gas

Saudi Aramco has recently awarded four major contracts worth approximately $5 billion for the expansion of the Zuluf offshore field, the world’s third-largest oil field. These contracts represent the largest engineering, procurement, construction, and installation projects Aramco has awarded this year (2025), according to the Washington-based Specialized Energy Platform.

The Zuluf expansion is a key part of Aramco’s long-term strategic framework to maintain its ambitious production capacity target of 12 million barrels per day.

The Zuluf offshore field expansion aims to increase oil production by processing an estimated 600,000 barrels per day through a centralized facility by 2026. Located about 240 kilometers north of Dhahran in the Arabian Gulf, the field consists primarily of two formations: Dhaluf and Shrimp.

Discovered in 1965, the Zuluf field contains Mediterranean Arabian crude and is the second largest offshore oil field in Saudi Arabia, ranking third globally after the Shaybah field in Saudi Arabia and the Permian Basin in the United States.

Saudi Aramco’s efforts to develop Zuluf have been ongoing, with significant contracts awarded in recent years. In January 2022, over $4.5 billion was allocated across five major project packages to international contractors. Further progress was made in 2023 when Jazz Arabia Services secured a $37.2 million contract for structural and pipeline installation work, while in November, Aramco awarded $1.7 billion worth of offshore contracts to UAE-based Lamprell and the National Marine Dredging Company of Abu Dhabi. These contracts are vital to enhancing the field’s infrastructure and production capabilities.

The Zuluf field holds estimated reserves of 31.31 billion barrels of oil equivalent, positioning it as one of the largest globally. As of mid-2023, approximately 7.5 billion barrels had already been extracted from the field. Saudi Arabia plans to increase Zuluf’s production from the current 500,000–550,000 barrels per day (2024 figures) to 600,000 barrels per day by 2026, eventually reaching 1.4 million barrels per day by 2030. To achieve these goals, Aramco is accelerating development and expansion projects, underscoring its commitment to securing long-term oil production and sustaining its global energy leadership.