Saudi Aramco Base Oil Company (Luberef), one of three members of the Aramco Base Oil Alliance, has announced the signing of an agreement with Saudi oil giant Aramco.
The MoU establishes the framework for technical, commercial, and operational assessments of the potential project, said Luberef in a statement.
A pure-play base oil producer, Luberef operates from its two facilities strategically located on the maritime Silk Road in Yanbu and Jeddah, on the kingdom's west coast. It has a combined capacity to produce 1.3 million metric tonnes per annum of base oils.
As per the deal, the duo will explore the potential for the company to build a base oil plant within the Jazan Refinery. For the project, Aramco will supply the Unconverted Crude Oil (UCO) as feedstock, said the statement.
This initiative represents a significant step within the Group III+ Project, which aims to expand the Company’s production capabilities, it added.-TradeArabia News Service
