Aramco lubricants JV signs deal with Samsung
Al Khobar, October 21, 2012
Saudi Aramco Lubricating Oil Refining Co (Luberef) has signed a contract with South Korea's Samsung Engineering to expand an oil lubricants refinery in Yanbu, Luberef said.
"The Yanbu Refinery expansion project will greatly help meet the local market's requirements as well as provide Gulf and global markets with high quality base oils," Mu'tassem Al-Ma'shooq, Luberef's chairman was quoted as saying in a statement issued late on Saturday.
Luberef said its total production in both Jeddah and Yanbu refineries would double to 1.2 million tonnes of oil lubricants annually once the project starts commercial production in the fourth quarter of 2015.
Luberef, 70 percent-owned by Saudi Aramco and 30 percent by Saudi Jadwa Industrial Investment, did not disclose the value of the contract but the expansion project is expected to cost around $1 billion.
Industry sources told Reuters last week Samsung Engineering had won the contract. - Reuters