Riyadh – Mubasher: Saudi Aramco Base Oil Company (Luberef) announced the extension of its utility services sale agreement with Saudi Oil Company (Aramco), which includes the land lease for the company’s facility in Jeddah.
The extension, signed on 9 August 2026, secures the site's operations from 1 July 2026, until 31 December 2030, and remains subject to future renewal.
Under the terms of the agreement, the annual land lease value is fixed at SAR 1.02 million. Utility service charges will be calculated based on various rates specified within the contract.
Luberef stated that there are no changes to the existing pricing structure for these services, and the financial impact of the extension will be reflected starting from the commencement date of the renewal.
The company noted that this move aligns with its long-term strategy to ensure operational continuity at the Jeddah facility and maintain the production of Group I base oils.
Saudi Aramco is identified as a related party in this transaction. Luberef confirmed it received the finalized contract from Saudi Aramco on 10 August 2026.
In the first half (H1) of 2026, the net profits of Luberef climbed by 112.57% year-on-year (YoY) to SAR 992.07 million.
