Saudi Aramco Base Oil Co. (Luberef) has awarded a 555-million Saudi riyals ($148.55 million) Engineering, Procurement and Construction (EPC) contract to Egypt’s Petrojet for Yanbu growth II expansion project.
The expansion will expand the Yanbu facility’s base oils (Group II and Group III) production capacity to 1.3 million Metric Tonnes (MT) per annum by 2025, the company said in a statement to the Saudi stock exchange.
The contract duration is 30 months, the statement added.
The Yanbu Facility was commissioned in 1997 with an initial production capacity of approximately 300,000 MT, according to Luberef's 2022 IPO propsectus. The Yanbu Growth I Expansion in 2017 enabled the company to produce Group II Base Oils. After reaching full ramp-up in 2021, the company’s total production capacity of Group I and Group II base oils in Yanbu and Jeddah reached the current capacity of 1.3 million MT annually.
(Writing by D Madhura; Editing by Anoop Menon)
(anoop.menon@lseg.com)
