Zuluf

Zuluf Oil Field Profile

Location and Ownership

The Zuluf Oil Field is located in the Arabian Gulf, approximately 240km north of Dhahran, Saudi Arabia, or about 40km offshore the north-east coast of the country. It is owned and operated by Saudi Aramco, the state-owned oil company of Saudi Arabia.

Discovery and Production History

The Zuluf Oil Field was discovered in 1965 and began production in 1973. It is a super-giant oil field situated in shallow water, approximately 36-40 meters deep.

Reserves and Geology

The field contains more than 31 billion barrels of oil-equivalent (boe) in proven reserves. The reserves are primarily from the late Jurassic era, stored in shale sandstone reservoirs, notably the Khafji and the main sandstone reservoir structures named Zuluf and Ribyan.

Current Production and Expansion

As of the current operations, the Zuluf field has a maximum production capacity of 800,000 barrels per day (bpd) of Arab Medium crude oil. The field is undergoing a significant expansion under the Zuluf field development program, which aims to increase the production capacity to 1.4 million barrels per day (Mbpd) of heavy crude oil by adding 600,000 bpd of Arabian Heavy crude production.

Expansion Details

• Offshore Infrastructure: The expansion includes the installation of a single well observation platform, three oil production deck manifolds, and associated subsea pipelines. Additionally, nine slipover jackets and decks are being installed. Modern electrified platforms are replacing the aging offshore infrastructure to extend the field's operational life.
• Onshore Central Processing Facilities: New onshore central processing facilities are being built, including a new gas and oil separation plant (GOSP), gas compression facilities, a new water injection plant, and associated pipelines. These facilities will process 600,000 barrels of Arabian Heavy crude oil per day.
• Downstream Pipelines: The stabilized crude oil will be transported to the Ju’aymah crude oil terminal, while the separated gas and condensate will be sent to the Tanajib gas plant through new downstream pipelines.

Contractors Involved

Several contractors are involved in the expansion project:

• Subsea 7 and L&T Hydrocarbon Engineering: Awarded the engineering, procurement, construction, and installation (EPCI) contract for three oil production deck manifolds and subsea pipelines.
• Jacobs Engineering: Awarded the contract for engineering and project management services for the new onshore central processing facilities.
• McDermott International: Awarded the EPCI contract for new platform jackets and a single observation platform.
• Saipem: Awarded the EPCI contract for subsea systems, platform decks, jackets, and associated subsea cables and pipelines, as well as maintenance and dismantling works on existing platforms.
• National Petroleum Construction Company (NPCC): Supplying nine jackets for the expansion.

Infrastructure

The field is developed with more than 270 producing wells and four offshore gas oil separation plants (GOSPs). GOSP-3, which was closed in 1995, was reopened in 2017 after repairs. The expansion includes the development of a new GOSP-4.

Environmental and Sustainability Impact

The expansion project is part of Saudi Arabia's efforts to support the Saudi Vision 2030, aiming to improve energy sustainability. However, it has also been highlighted as a significant contributor to new oil and gas production and associated carbon emissions.

Project Timeline

• Commencement: The expansion project began in January 2018.
• Expected Completion: Initially expected to be completed by 2020, but given the ongoing nature of the project and recent adjustments, the exact completion date may have been extended. The Zuluf Expansion Phase 1 is currently expected to start in 2026, with production design capacity expected to be reached by 2027.

Additional Developments

• Renovations and Upgrades: The project includes the renovation of existing infrastructure, such as the five-story residential platform and the replacement of old electrical systems and mechanical equipment.
• Training and Local Content: The project involves on-the-job training programs to facilitate skill and knowledge transfer, aligning with the In-Kingdom Total Value Add (IKTVA) program to maximize locally manufactured oil and gas materials and services.

The Zuluf Oil Field expansion is a critical project for Saudi Aramco, enhancing the country's oil production capacity and supporting broader economic and sustainability goals.