Saudi Aramco Base Oil Company (Luberef) will focus on executing the Yanbu Growth II project in 2025, according to President and CEO Samer Al-Hokail. 

“The project is the cornerstone of our expansion strategy,”  he said in the company’s 2024 result statement.

The CEO said the project will enable the company to produce Group III base oils, making it the region’s sole producer of all three base oil groups.

The project will enhance production flexibility, helping maximise utilisation capacity and capture opportunities in high-netback lubricant markets.

In February 2023, Luberef awarded a 555-million Saudi riyals ($148.55 million) Engineering, Procurement and Construction (EPC) contract to Egypt’s Petrojet for the 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.

Luberef’s 2024 net profit fell 36 percent year-on-year (YoY) to SAR 972 million , driven by a decline in base oil and by-product margins. Revenue rose six percent YoY to SAR 10 billion.

(Editing by Anoop Menon) (anoop.menon@lseg.com)

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