Riyadh – Mubasher: Saudi Aramco Base Oil Company (Luberef) inked a new long-term agreement with Saudi Oil Company (Aramco) for the supply of feedstock and the sale of by-products at its Jeddah facility.

The contract, which replaces a previous arrangement, has a duration of 10 years and became effective on 29 August 2026.

Under the terms of the agreement, Saudi Aramco will supply 24,500 barrels per day of feedstock to the Jeddah plant, while Luberef will sell 16,500 barrels per day of by-products back to the energy major.

This supply ensures the facility can operate at full capacity to produce Group I base oils.

The deal enables Luberef to maintain an annual production of approximately 275,000 metric tons of Group I base oils in Jeddah, representing about 20% of the company’s total annual production capacity of 1.46 million metric tons.

The financial impact will be reflected in financial statements starting from 29 August. The agreement includes a revised pricing formula and a payment period of 30 days.

On 9 August, Luberef extended its utility services sale agreement with Aramco, which includes the land lease for the company’s facility in Jeddah.