Aljomaih Energy & Water Company (“AEW”) a leading Saudi developer of power and water assets, today announced, the successful signing of financing agreements for the Zuluf water treatment facility, which will provide water injection to the strategic Zuluf Oil block, located in the Arabian Gulf, 240 km north of Dhahran, Saudi Arabia.
The $425 million project, with a capacity of 185,000 m3/day, was formally awarded by Aramco to the consortium of Aljomaih Energy & Water Company and Almar Water Solutions (Almar) in June 2022, followed by the signing of a Water Treatment Agreement between the parties, in December 2022.
The Zuluf water treatment facility is the first of its kind in the Kingdom on a project finance model for water injection technology and will be funded by a combination of senior project finance debt and equity contributions from shareholders.
The senior debt required for the project will be financed through a U.S. dollar-denominated soft mini-perm facility, provided by a consortium of four GCC banks, which are the Arab Petroleum Investments Corporation (APICORP), Riyad Bank, Saudi National Bank and Warba Bank.
Commenting on the achievement, Mr. Ibrahim Al-Jomaih, Chairman of the Board, said: “Aljomaih Energy & Water Company is delighted to play an integral role in the development and delivery of the Zuluf water treatment facility. The signing of the financing agreements marks an exciting new milestone for the project, and reflects our shared commitment, together with Aramco and our partners, in advancing Saudi’s Vision 2030.”
The water treatment plant will be developed under a 25-year BOOT (build, own, operate, and transfer) scheme, including the design, development, financing, construction, commissioning, operation and maintenance, and transfer of ownership; and is aligned with IKTVA requirements, by employing local workers, procuring local services, and contributing to the economic and social development of the region.
Back To News & Insights