Saudi Aramco Awards $5 Billion Zuluf Expansion as Q2 Profits Projected to Drop 15 Percent

Saudi Aramco has greenlit over $5 billion in contracts for the massive offshore Zuluf oilfield expansion, aiming to boost output by more than 600,000 barrels per day—even as oil prices stay subdued. The project, which includes at least five major EPC packages spanning platforms, subsea works, and pipelines, is led by contractors like McDermott and Larsen & Toubro.

Once completed, Zuluf will stand as one of Aramco’s largest offshore undertakings in recent years, underlining the company’s commitment to long-term upstream investment.

The news lands just days before Aramco’s Q2 2025 earnings release on August 5. Analysts expect net profit to fall to $23.7 billion, down from $27.3 billion a year earlier—a drop of up to 14.7%—citing a 22% oil price slide as the main driver.

Despite profit pressure, Aramco continues to ramp up upstream spending, targeting a daily capacity of 13 million barrels by 2027. Executives believe tight global spare capacity will eventually reward these investments, even as current output remains capped by OPEC+ quotas.

Investors are watching closely for not just profit figures, but also signals on Aramco’s capital spending and downstream strategy—as the oil giant positions for the next market upturn.