Logo ofSaudi Aramco Base Oil Co. (Luberef)
The new agreement will replace the current feedstock supply agreement, which is scheduled to end on Aug. 28, 2026. 
Luberef explained in a statement on Tadawul that Saudi Aramco’s notice aligns with the Ministry of Energy’s approval to allocate feedstock to the Jeddah facility. It represents an important step, reaffirming the continued cooperation between Saudi Aramco and Luberef toward a shared strategic goal: ensuring the continuity of the company’s Jeddah facility beyond 2026.
The company stated that with the continuation of operations at the Jeddah facility, it will maintain the facility’s current maximum production capacity of 275,000 metric tons per year (mtpy) of Group I base oils. Once the second expansion project in Yanbu is completed, the company’s total maximum production capacity will reach 1.53 million mtpy.
The company will disclose any material developments upon the completion, signing, and approval of the new agreement in accordance with applicable regulations, it noted.
Luberef’s initial public offering (IPO) prospectus indicated that the Jeddah facility would be shut down by mid-2026, but the availability of feedstock will ensure the continuation of operations at the Jeddah facility beyond mid-2026.
According to data available on Argaam, Luberef recently received notices from the Ministry of Energy regarding the allocation of feedstock to the company’s facilities. The allocation for the Jeddah facility—24,500 barrels per day—will be extended until Dec. 31, 2030, subject to renewal.
Logo ofSaudi Aramco Base Oil Co. (Luberef)
The new agreement will replace the current feedstock supply agreement, which is scheduled to end on Aug. 28, 2026.
Luberef explained in a statement on Tadawul that Saudi Aramco’s notice aligns with the Ministry of Energy’s approval to allocate feedstock to the Jeddah facility. It represents an important step, reaffirming the continued cooperation between Saudi Aramco and Luberef toward a shared strategic goal: ensuring the continuity of the company’s Jeddah facility beyond 2026.
The company stated that with the continuation of operations at the Jeddah facility, it will maintain the facility’s current maximum production capacity of 275,000 metric tons per year (mtpy) of Group I base oils. Once the second expansion project in Yanbu is completed, the company’s total maximum production capacity will reach 1.53 million mtpy.
The company will disclose any material developments upon the completion, signing, and approval of the new agreement in accordance with applicable regulations, it noted.
Luberef’s initial public offering (IPO) prospectus indicated that the Jeddah facility would be shut down by mid-2026, but the availability of feedstock will ensure the continuation of operations at the Jeddah facility beyond mid-2026.
According to data available on Argaam, Luberef recently received notices from the Ministry of Energy regarding the allocation of feedstock to the company’s facilities. The allocation for the Jeddah facility—24,500 barrels per day—will be extended until Dec. 31, 2030, subject to renewal.
