Saudi Aramco has awarded a fresh round of contracts for the mammoth Zuluf oilfield expansion—an offshore project worth around $5 billion, aimed at boosting production capacity by more than 600,000 barrels per day. This latest investment push comes just days before Aramco is set to release its Q2 2025 results, which analysts expect will reflect a double-digit profit decline amid sustained oil price weakness.
According to Upstream, the new Zuluf development phase involves at least five key packages covering offshore platforms, subsea infrastructure, and pipelines. Contractors involved include industry heavyweights such as McDermott and Larsen & Toubro. Once completed, Zuluf’s expansion is expected to be one of Aramco’s largest offshore boosts in years—a move that reinforces the Kingdom’s long-term commitment to oil, despite short-term volatility.
But the timing is noteworthy. Analyst consensus as cited by Amena Bakr peg Aramco’s Q2 net income (including minority interest) at a median estimate of $23.7 billion—down from $27.3 billion in Q2 last year. Others are even more bearish: AlJazira Capital expects a 14.7% decline to $24.2 billion, while Citi flagged a 22% oil price drop as the primary driver of weaker margins.
Despite these headwinds, Aramco appears unfazed. It continues to double down on upstream investment, betting that supply-side discipline and long-cycle megaprojects will eventually pay off—especially as global spare capacity thins. The Zuluf project aligns with Aramco’s target of reaching 13 million bpd in production capacity by 2027, even as current output remains capped under OPEC+ agreements.
With results set to drop August 5, Aramco’s Q2 report will be closely watched—not only for earnings, but for any clues on capital expenditure pacing and downstream resilience. For now, the company is doing what it does best: spending big, planning long, and betting the cycle will turn.
By Julianne Geiger for Oilprice.com
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