Luberef signs agreement with SAMREF to supply heavy vacuum gas oil

Saudi Aramco Base Oil Company – Luberef announced on Sunday the signing of a supply agreement to receive a minimum of 3000 barrels per day of Heavy Vacuum Gas Oil from Saudi Aramco Mobil Refinery Company (SAMREF), subject to product availability. This agreement is a part of the business transformation initiative, which is in line with Saudi Aramco’s transformation initiative for its joint ventures (JVs).

According to the company, the product price is calculated based on an agreed formula. It is linked to Market prices, indicating that the agreement shall continue for a period of five years and renewed automatically for a similar period unless terminated in accordance with the terms of the Agreement.

The positive financial impact is expected from the second quarter of 2024, which cannot be determined exactly and will depend on the base oil market prices.

The Company is also expected to boost the Heavy Vacuum Gas Oil volumes to boost base oils production by approximately 96,000 metric tons per year of heavy grades of Group II base oils, which have higher values.