Saudi Aramco Awards $940 Million For Zuluf Water Expansion
Saudi Arabia, 29 July 2026 - According to MEED, Aramco has awarded contracts worth approximately US$940 million to expand its Zuluf Water Treatment Project, thus increasing its treatment capacity to 308,000 cubic metres per day. It marks another milestone in the Kingdom's long-term strategy to sustain crude oil production while modernising its upstream infrastructure. [1]
The expansion of the Zuluf Water Treatment Plant builds on the success of Phase I. This strategic industrial facility commenced operations in 2023 with a treatment capacity of 185,000 cubic meters per day.
Image Source: meed.com, Zuluf water expansion
The project has been awarded to the same special purpose vehicle (SPV) through an extension of the existing contractual framework, ensuring full alignment with the original concession structure. This SPV is structured as a joint venture between lead party Almar and Al Jomaih Energy & Water Company.
Consistent with the initial phase, the expansion will be developed under a BOOT (Build-Own-Operate-Transfer) concession model, with the franchise period extending to 2050. [2]
The contract award comes as Saudi Arabia continues investing in strategic upstream assets despite a more disciplined global energy investment environment.
Water injection systems are a critical component of mature offshore oil field operations, enabling operators to maintain reservoir pressure, improve oil recovery rates and extend field life. Expanding the supporting water infrastructure therefore represents an essential investment in production efficiency rather than simply increasing output.
The latest investment also reflects Saudi Arabia's continued commitment to balancing energy security with operational sustainability. By expanding centralized seawater treatment capacity, Aramco can reduce operational bottlenecks and improve water management efficiency.
Such investments complement the Kingdom's broader energy strategy, which includes expanding natural gas production, improving operational efficiency and deploying lower-carbon technologies across upstream operations.
The Zuluf development is one of Saudi Aramco's flagship offshore programmes. Over recent years, the company has advanced multiple engineering, procurement and construction (EPC) packages covering offshore platforms, pipelines, processing facilities and supporting utilities. Earlier in July, the Zuluf water treatment plant reached its first water production milestone, indicating steady progress toward the project's broader commissioning schedule.
Industry analysts note that projects of this scale generate opportunities across multiple sectors, including engineering, construction, industrial equipment, desalination technologies, water treatment systems, pumps, valves, automation and digital monitoring solutions.
International EPC contractors, equipment manufacturers and specialist service providers from countries including China, South Korea, Italy, the United Kingdom and the United States have historically played important roles in Saudi Aramco's major offshore developments, and future procurement packages are expected to continue attracting global participation.
References
[1] https://www.meed.com/saudi-aramco-awards-940m-zuluf-water-expansion
