Luberef Extends Land Lease with Saudi Aramco Until 2030

Luberef, the Saudi Aramco Base Oil Co., has extended its utilities services agreement with Saudi Aramco until December 31, 2030. The extension covers the period from July 1, 2026, to December 31, 2030. According to Luberef, the annual land lease amounts to SAR 1.02 million, and utility service charges will continue to be calculated according to the rates specified in the agreement.

The company stated that there is no change to the pricing terms, and the financial impact of the extension will be recognized from July 1, 2026. Luberef said it received the signed contract from Aramco on August 10. The extension secures the arrangements needed to ensure the continuity of operations at its Jeddah facility, in line with its long-term strategy.

The agreement comes as a relief to Luberef, which had previously announced plans to close the Jeddah production facility in 2026. However, the company may reconsider this plan if the land lease for the Jeddah facility were renewed and alternative arrangements for the facility became available in the future.