The Zuluf Oil Development project in Saudi Arabia has entered a new expansion phase through a $940 million water treatment award. The latest investment strengthens infrastructure supporting the giant offshore oilfield in the Eastern Province. Aramco awarded the expansion to Almar Water Solutions through an existing special purpose vehicle. The development will increase treated water production for injection and reservoir pressure support.
The award adds a major water infrastructure component to the wider Zuluf development program. Meanwhile, Aramco continues advancing crude production facilities linked to the field’s planned expansion.
Zuluf Oil Development Project Adds $940 Million Water Facility
Almar Water Solutions will develop the second phase of the Zuluf Water Treatment Project. The company will deliver the expansion through the same special purpose vehicle used for phase one.
The SPV combines Almar Water Solutions and Al Jomaih Energy & Water Company. The arrangement extends the existing concession framework and maintains continuity across the project.
The second phase carries a total investment of $940 million. It will add a new treatment facility with capacity of 308,000 cubic meters daily.
That capacity equals approximately 1.9 million barrels of water daily. The treated water will support injection requirements at the Zuluf oilfield.
The first phase began operations after Fisia Italimpianti produced its first usable water in July 2026. The facility can treat up to 185,000 cubic meters daily.
Fisia Italimpianti, a Webuild subsidiary, designed and constructed the first treatment plant. It will also manage operations and maintenance for 25 years.
The facility treats highly saline groundwater containing minerals, gases, and hydrocarbons. It then prepares the water for reinjection into offshore wells.
Zuluf Oil Development Project Advances Crude Production Infrastructure
Aramco’s wider Zuluf development includes a major crude oil increment targeting 600,000 barrels daily. The company expects the increment to come on-stream during 2026.
Aramco reported continued procurement and construction progress on the Zuluf crude oil increment. The development forms part of its strategy to maintain sustainable maximum crude production capacity.
The project also connects with Aramco’s wider offshore infrastructure program across Saudi Arabia. Contractors continue delivering pipelines, platforms, water injection facilities, and other offshore works.
The wider offshore program initially included packages worth approximately $1.7 billion. Aramco has subsequently issued additional contracts across several producing offshore fields.
Furthermore, the Zuluf development supports Aramco’s broader gas expansion strategy. The Tanajib Gas Plant processes associated raw gas from both Marjan and Zuluf fields.
The plant reached operational status in December 2025. Aramco expects it to reach 2.6 billion standard cubic feet daily during 2026.
Zuluf Oil Development Project Strengthens Saudi Construction Demand
The new water treatment award demonstrates the expanding infrastructure requirements surrounding mature offshore oilfields. Water treatment and injection systems remain essential for maintaining reservoir pressure and production performance.
The $940 million expansion therefore creates opportunities for engineering, construction, equipment, commissioning, and long-term operations services.
It also strengthens the role of private infrastructure developers within Saudi Arabia’s energy construction market. The BOOT concession structure provides a long-term framework extending to 2050.
The development also connects with Aramco’s growing international contractor ecosystem. Recently announced French agreements worth more than $3.7 billion include drilling equipment and OCTG procurement.
Those agreements also introduce industrial artificial intelligence and digital twin cooperation. Consequently, they could support the digitalization of future energy construction and asset management.
Read Also: Contract signed for Saudi Arabia’s $5 Billion Jubail Petrochemical complex
Zuluf Development Project’s Location
The Zuluf Development Project’s location is about 240 kilometers, right along the northern region of Dhahran. Its ownership and operation are under the Saudi state-owned company, Saudi Aramco. Back in 1965, the shallow water oil field was discovered. Thereafter, it was built in 1983, however, due to low demand for Arabian medium crude oil, it shut down in 1995. Nevertheless, Saudi Aramco, restarted the plant in 2016, with the repairing of the GOSP-3. Reports reveal that the development boasts a 250,000 barrels of oil processing capacity. Alongside, 100 million metric standard cubic feet (Mmscf) of gas processing, daily.
Quite impressively, the camera solutions that will be incorporated on-site have been designed to withstand hazardous applications. Furthermore, the surveillance system can operate in temperatures of well up to 70°C. Taking it a step further, the camera stations will include encoding technology alongside the latest thermal imaging. As a result, the development will receive clear visual feedback, through various lighting conditions.
Project Fact Sheet
Name: Zuluf Oil Development Project.
Location: Eastern Province, Saudi Arabia.
Offshore Field: Zuluf oilfield, Arabian Gulf.
Owner: Saudi Aramco.
Sector: Offshore oil and gas infrastructure.
Latest Investment: $940 million.
Latest Development: Second phase of the Zuluf Water Treatment Project.
Water Treatment Capacity: 308,000 cubic meters per day.
Water Capacity Equivalent: Approximately 1.9 million barrels daily.
First Phase Capacity: 185,000 cubic metres per day.
Water Application: Offshore reservoir pressure support and injection.
Crude Increment Capacity: 600,000 barrels per day.
First Water Milestone: Achieved in July 2026.
Concession Model: Build-Own-Operate-Transfer.
Concession Period: Through 2050.
Current Status: Water treatment expansion awarded; crude development progressing.
Main Construction Scope: Water treatment, injection infrastructure, offshore facilities, pipelines, and processing facilities.
Project Team
Project Owner: Saudi Aramco.
Water Expansion Developer: Almar Water Solutions.
Water Infrastructure Partner: Al Jomaih Energy & Water Company.
First-Phase EPC Contractor: Fisia Italimpianti.
First-Phase Parent Company: Webuild Group.
Offshore Contractor: National Petroleum Construction Company.
Onshore EPC Contractor: JGC Arabia.
Specialist Camera Supplier: Synectics.
Operations and Maintenance Contractor: Fisia Italimpianti.
Saudi Energy Authority: Saudi Ministry of Energy.
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