Saudi Aramco Base Oil Company - Luberef announce the signing of Engineering, Procurement and Construction contract for Yanbu facility expansion (Growth II)
Referring to Saudi Aramco Base Oil Company – Luberef’s prospectus dated December 11, 2022 corresponding to 17/05/1444 in regards to Yanbu growth II expansion; which aims to expand the existing units to their maximum potential production capacity, the Company pleased to announce the signing of engineering, procurement and construction contract for project expansion to increase Yanbu facility base oil production capacity to approximately 1.3 million MT per annum.
Date of Announcement of the Award
2023-02-26 Corresponding to 1444-08-06
Contract Subject Matter
Signing of engineering, procurement and constructions contract with PETROJET Co. for Yanbu facility expansion (growth II) which aims to expand existing units at Yanbu facility to their maximum potential production capacity by increasing Group II base oils productions or introduce the production of Group III base oils. This expansion will allow flexibility for the production of additional Group II and Group III Base Oils based on market demand.
Date of Signing the Contract
2023-02-23 Corresponding to 1444-08-03
Contract Value
Total contract value of SAR 555 million.
Contract Details
Contract Details Engineering, Procurement and Constructions contract with PETROJET Co. for Yanbu facility expansion to increase Yanbu facility base oils production capacity to 1.3 million MT in 2025.
Contract Duration
30 months from the notice to proceeds as per the provisions of the contract.
Financial Impact and the Relevant Period
The positive financial impact is expected after the commencement of commercial operations by 2nd half of 2025.
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