| Introduction | Saudi Aramco Base Oil Company – Luberef is pleased to announce 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 business transformation initiative, which is in line with Saudi Aramco’s transformation initiative for its joint ventures (JVs). |
| Date of Announcement of the Award | 2024-01-25 Corresponding to 1445-07-13 |
| Contract Subject Matter | 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, which will be used as feedstock to produce base oils and by-products in Yanbu facility. |
| The Entity with Which the Contract was Signed | Saudi Aramco Mobil Refinery Company (SAMREF) |
| Date of Signing the Contract | 2024-01-25 Corresponding to 1445-07-13 |
| Contract Value | The product price is calculated based on an agreed formula and is linked to Market prices. |
| Contract Details | 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, which will be used as feedstock to produce base oils and by-products in Yanbu facility. |
| Contract Duration | Effective from 25-01-2024 G and 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. |
| Financial Impact and the Relevant Period | 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. Heavy Vacuum Gas Oil volumes are expected 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. |
| Related Parties | Saudi Aramco Mobil Refinery Company (SAMREF). |
