Luberef Inks Decade-Long Deal with Saudi Aramco for Feedstock and Return Streams
Luberef, Saudi Aramco Base Oil Co., has signed a new agreement with Saudi Arabian Oil Co. (Saudi Aramco) to supply feedstock and sell return streams for a 10-year term starting August 29, 2026.
The deal is aligned with Luberef's long-term strategy to ensure operational continuity at its Jeddah facility and Group I base oil production.
The agreement will see Saudi Aramco supply Luberef with a total of 24,500 barrels per day of feedstock, while Luberef will sell a total of 16,500 barrels per day of return streams to the state-owned company.
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.