The value of the agreement depends on the net quantities of feedstock received
Saudi Aramco Base Oil Co. (Luberef) signed a new agreement with Saudi Arabian Oil Co. (Saudi Aramco) for the supply of feedstock and sale of return streams, replacing the previous agreement. 
In a statement to Tadawul, the company said the agreement was signed on Aug. 30, 2026, and has a 10-year term starting Aug. 29, 2026. It is renewable by mutual agreement.
The deal is aligned with the company’s long-term strategy to ensure operational continuity at its Jeddah facility and Group I base oil production. It also supports maintaining the company’s strategic presence in the Kingdom’s Western Region and preserving operational flexibility through the availability of two production facilities.
Luberef said the value of the agreement depends on the net quantities of feedstock received and is calculated based on a pricing formula that includes an agreed market index, in addition to logistics and other related costs. The payment period is 30 days.
The company said the financial impact of the agreement cannot currently be determined, noting that it will be reflected in the financial statements starting Aug. 29, 2026. The financial benefits will depend on prevailing base oil prices, production levels and relevant market conditions.
Under the agreement, subject to the availability of feedstock from Saudi Aramco, a total of 24,500 barrels per day of feedstock will be supplied, while a total of 16,500 barrels per day of return streams will be sold.
These volumes represent the Jeddah facility’s full feedstock requirements to operate at full production capacity for Group I base oils.
Luberef added that the availability of feedstock will enable the company to continue producing about 275,000 metric tons per year of Group I base oils at its Jeddah facility, representing around 20% of the company’s total annual production capacity of 1.455 million metric tons.
Luberef also indicated that Saudi Aramco is a related party to the agreement, adding that it received the signed copy of the agreement on Aug. 31, 2026.
Meanwhile, the company noted it received the signed copy of the agreement from Saudi Aramco on Monday, Aug. 31, 2026.
The value of the agreement depends on the net quantities of feedstock received
Saudi Aramco Base Oil Co. (Luberef) signed a new agreement with Saudi Arabian Oil Co. (Saudi Aramco) for the supply of feedstock and sale of return streams, replacing the previous agreement.
In a statement to Tadawul, the company said the agreement was signed on Aug. 30, 2026, and has a 10-year term starting Aug. 29, 2026. It is renewable by mutual agreement.
The deal is aligned with the company’s long-term strategy to ensure operational continuity at its Jeddah facility and Group I base oil production. It also supports maintaining the company’s strategic presence in the Kingdom’s Western Region and preserving operational flexibility through the availability of two production facilities.
Luberef said the value of the agreement depends on the net quantities of feedstock received and is calculated based on a pricing formula that includes an agreed market index, in addition to logistics and other related costs. The payment period is 30 days.
The company said the financial impact of the agreement cannot currently be determined, noting that it will be reflected in the financial statements starting Aug. 29, 2026. The financial benefits will depend on prevailing base oil prices, production levels and relevant market conditions.
Under the agreement, subject to the availability of feedstock from Saudi Aramco, a total of 24,500 barrels per day of feedstock will be supplied, while a total of 16,500 barrels per day of return streams will be sold.
These volumes represent the Jeddah facility’s full feedstock requirements to operate at full production capacity for Group I base oils.
Luberef added that the availability of feedstock will enable the company to continue producing about 275,000 metric tons per year of Group I base oils at its Jeddah facility, representing around 20% of the company’s total annual production capacity of 1.455 million metric tons.
Luberef also indicated that Saudi Aramco is a related party to the agreement, adding that it received the signed copy of the agreement on Aug. 31, 2026.
Meanwhile, the company noted it received the signed copy of the agreement from Saudi Aramco on Monday, Aug. 31, 2026.
