Luberef Re-leases Jeddah Facility Land Until 2030

Luberef, Saudi Aramco Base Oil Co., has extended its land lease agreement for its Jeddah facility until December 31, 2030. The extension covers the period from July 1, 2026, to the specified end date and includes utility services.

The annual land lease amounts to SAR 1.02 million, while utility service charges will continue according to agreed-upon rates. Luberef stated that there is no change to pricing terms, with the financial impact of the extension recognized from July 1, 2026.

This move secures continuity for operations at the Jeddah facility, aligning with Luberef's long-term strategy and continued production of Group I base oils. The company had previously planned to close the facility in 2026 but may reconsider this plan if alternative arrangements become available due to a renewed land lease.