The value of the 400,000 barrels per day refinery project was not disclosed.
Jazan refinery is being built to meet the growing domestic demand for the refined products, reported Dow Jones.
The refinery project attracted about 20 international engineering firms who bid for its construction.
The refinery is expected to become operational in 2016.
Initially, the Saudi government undertook the responsibility to set up the refinery as a private sector initiate but after a luke warm response it handed over the project responsibility to Aramco.
Aramco is planning to invest $35bn in a span of five years for the exploration and development of crude oil to maintain a healthy production portfolio.
