Saudi Aramco Base Oil Company

What Saudi Aramco Base Oil Company does

Saudi Aramco Base Oil Company, operating commercially as Luberef, is the sole domestic virgin base oil producer in Saudi Arabia and one of the largest base oil manufacturers globally by capacity. Founded in 1976 as a joint venture between Petromin and Mobil, the company has been majority-owned by Saudi Aramco since 1996 and listed on the Saudi Stock Exchange (Tadawul, ticker 2323) since 2022. Luberef operates two purpose-built refineries — Jeddah (commissioned 1977, 180,000 MT initial capacity) and Yanbu (commissioned 1997, 300,000 MT initial capacity) — with combined annual capacity of approximately 1.3 million metric tonnes of Group I and Group II base oils, with Group III capacity in development. Together with Motiva and S-Oil under the Aramco Base Oil Alliance, Luberef participated in producing roughly one in every eight barrels of base oil globally in 2021.

The company's product portfolio spans three branded base oil lines — aramcoDURA (Group I), aramcoPRIMA (Group II, launched 2017 via Yanbu expansion), and aramcoULTRA (Group III, under the Group III+ Project). Production is single-feedstock (Arab Light crude) under long-term Ministry of Energy allocations, and yields a diversified by-product stream including naphtha, ultra-low-sulfur diesel, asphalt, sulfur, marine heavy fuel oil, bright stock, slack wax, and drilling fluid feedstock. Luberef also develops the LubeHub Value Park, an industrial park adjacent to Yanbu that enables downstream manufacturers to site operations with direct access to Luberef feedstock under Saudi Vision 2030 local-content objectives.

The business model is B2B enterprise sales via a direct sales force to major international, regional, and national oil companies (NOCs, IOCs) across Saudi Arabia, MENA, India, Asia, the Americas, and Europe, with distribution supported by a long-term shipping partnership (SCShipping). Pricing is quote-based and not publicly disclosed. Revenue is generated from base oil sales and by-product sales, with reported Q4 2025 revenue of SAR 1.57 billion and 2025 net income of SAR 855 million (down 12% year-over-year). Operational excellence is a stated pillar: 99.7% mechanical availability in 2021, 35+ million man-hours without recordable incidents as of March 2024, ISO 45001 certification, and six Saudi Aramco President's Affiliate Excellence Awards between 2021 and 2024.

Name

Saudi Aramco Base Oil Company

Legal name

Saudi Aramco Base Oil Company – Luberef

Website

https://luberef.com

Company type

Public

Founded year

1976

Operating status

Operating

Headcount range

501–1,000 employees

Short description

Saudi Aramco Base Oil Company (Luberef) is a Saudi Arabia-based, Saudi Aramco-affiliated producer of Group I, II, and III base oils for major international and national oil companies globally. It operates two refineries totaling 1.3 million MT of annual capacity and sells base oils plus by-products across MENA, Asia, the Americas, and Europe.

Ownership category

akta.pro rank

Product category

Lubricant Base Oils

NAICS

Petroleum Lubricating Oil and Grease Manufacturing (324191)

SIC

Petroleum Refining (2911), Wholesale-Petroleum Bulk Stations & Terminals (5171)

akta.pro primary industry

Base Oil Production & Supply (Group I–V, Re-refined) (EUALAJAA)

Keywords

• Base oil production
• Lubricant feedstock
• Petroleum refining byproducts
• Industrial lubricant oils
• Naphtha and asphalt

Headquarters

HQ city

Jeddah

HQ country

Saudi Arabia

HQ region

Middle East

Offices2 records

Markets served

GTM type

B2B

Offering type

Hardware or Manufacturing

Cost components

Supply Chain, Operations, Infrastructure, Personnel, Technology or R&D, Marketing or Sales

Revenue model

1. Base Oil Sales: Production and sale of Group I and Group II base oils to major international, regional, and national oil companies globally. Products are sold in Saudi Arabia, MENA countries, India, Asia, Americas, and Europe.
2. By-Product Sales: Sale of by-products including naphtha, diesel, asphalt, sulfur, Marine Heavy Fuel Oil, and specialty products

Go-to-market motion1 record

Distribution channels1 record

Marketing channels4 records

Core offering

Saudi Aramco Base Oil Company (Luberef) manufactures and supplies virgin base oils (Group I aramcoDURA, Group II aramcoPRIMA, and Group III aramcoULTRA) derived from Arab Light crude oil at facilities in Jeddah and Yanbu with combined capacity of 1.3 million metric tonnes annually. The company also produces refining by-products including naphtha, ultra-low-sulfur diesel, asphalt, sulfur, and Marine Heavy Fuel Oil, and operates the LubeHub Lubricants Value Park adjacent to its Yanbu facility to enable co-located downstream lubricant manufacturing.

Product overview

Saudi Aramco Base Oil Company (Luberef) operates as a leading base oil producer with a unified product portfolio centered on three core base oil brands: aramcoDURA (Group I), aramcoPRIMA (Group II), and aramcoULTRA (Group III). The company operates two strategically located production facilities in Jeddah and Yanbu with a combined annual capacity of 1.3 million metric tonnes. Alongside its base oil production, Luberef produces various by-products including naphtha, diesel, asphalt, sulfur, Marine Heavy Fuel Oil, bright stock, slack wax, and drilling fluid feedstock. The company has also developed LubeHub, an industrial value park adjacent to the Yanbu facility that enables investors to manufacture finished lubricant products by providing direct access to Luberef's base oils and by-products as feedstock.

Differentiator

Problem solved

Functional benefit

Brands

• LubeHub: An industrial park project adjacent to the Yanbu Facility providing investors with the opportunity to build manufacturing facilities near Luberef's operations. Part of Saudi Arabia's Vision 2030 diversification goals.
• AramcoDURA
• AramcoPRIMA
• AramcoULTRA

Products and services

• aramcoDURA (Group I Base Oils) Group I base oils derived from straight-run residue Arab Light crude oil, including aramcoDURA 500, aramcoDURA 150, and aramcoDURA 150BS. Used in automotive and industrial lubricant applications.
• aramcoPRIMA (Group II Base Oils) Group II base oils produced from the Yanbu facility expansion, including aramcoPRIMA 230, aramcoPRIMA 70, aramcoPRIMA 500, and aramcoPRIMA 110. Offers enhanced performance characteristics compared to Group I oils for lubricant blenders.
• aramcoULTRA (Group III Base Oils) Higher performance Group III base stocks for advanced lubricant formulations, including aramcoULTRA 4 and aramcoULTRA 8, positioned within the aramcoULTRA® brand slate for the global premium base oil market.
• Naphtha Light hydrocarbon by-product from the base oil refining process, used as a raw material in petrochemical and chemical industries.
• Diesel (Ultra Low Sulfur) Ultra low sulfur diesel produced as a by-product of the base oil production process.
• Asphalt Bitumen/asphalt produced from refining operations, contributing to the Kingdom's infrastructure development for road construction and maintenance.
• Sulfur Sulfur extracted during the refining process, used in various industrial applications including chemical manufacturing.
• Marine Heavy Fuel Oil (MHFO) Heavy fuel oil for marine vessels, produced as a by-product from the base oil refining process.
• Bright Stock High viscosity base oil used as feedstock for producing rubber processing oils and finished lubricants.
• Slack Wax Wax by-product from the base oil refining process, used in various industrial applications.
• Drilling Fluid Feedstock Specialty feedstock for producing oil-well drilling fluids, blended with additives like barite and bentonite.
• LubeHub Lubricants Value Park Industrial park project strategically located adjacent to the Yanbu facility, enabling investors to build manufacturing facilities for finished lubricants, transformer oils, metalworking fluids, white oils, rubber process oils, lubricant additives, and other specialty products with direct access to Luberef's base oils and by-products.

Quantifiable outcome

• 99.7% mechanical availability
• +1 more outcomes

Named customers3 records

Segments4 records

Ideal customer profiles1 record

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature4 records

Partnerships

Four partnerships are on record, tiered core.

• APAR Industries Middle East LimitedcoreStrategic or Co-development Partner · 22 June 2026APAR Industries Middle East Limited signed an agreement with Luberef for supply of base oils within the LubeHub Value Park in Yanbu. The arrangement enables APAR to produce its flagship transformer oils and a range of specialty oils, strengthening its downstream industrial ecosystem and enhancing local content in Saudi Arabia.
• Saudi AramcocoreStrategic or Co-development Partner · 17 February 2026Luberef signed MoU with Saudi Aramco to explore potential for a new base oil plant within the Jazan Refinery and Petrochemical Complex. This initiative is part of the Group III+ Project to expand Luberef's production capabilities and provide a full range of base oil products. Aramco will supply Unconverted Crude Oil as feedstock.
• Aramco Base Oil Alliance (Aramco, Luberef, Motiva, S-Oil)coreStrategic or Co-development Partner · 25 November 2025Luberef participates in the Aramco Base Oil Alliance which together produced 1 in every 8 barrels of base oil globally in 2021. The Alliance aims to integrate Luberef into the prestigious aramcoULTRA base oil slate through the Group III Slating Program.
• SCShippingcoreChannel Partner/ Reseller/ Distributor · 13 October 2025Luberef signed a strategic long-term shipping agreement with SCShipping to strengthen its global presence in base oil exports and support continued excellence and growth. This partnership enables efficient global distribution of base oils.

Scale indicators9 records

Recent moves11 records

Expansion highlights6 records

Direct peers

• Motiva Enterprises: Motiva is a fellow member of the Aramco Base Oil Alliance (alongside Luberef, S-Oil, and Saudi Aramco) and one of North America's largest base oil and lubricant producers. It is the most direct comparable given shared Alliance participation, Group II/III capabilities, and Aramco strategic alignment.
• SK Lubricants: SK Lubricants is one of the world's largest producers of Group III base oils (Yubase) and a major global supplier to lubricant blenders. It competes head-to-head with Luberef in premium base oils and shares similar end-market exposure to automotive and industrial lubricant manufacturers.
• S-Oil Corporation: S-Oil is a South Korean refiner and the third Aramco Base Oil Alliance partner with Luberef and Motiva. It produces Group II and III base oils serving global lubricant blenders, making it a closely matched peer in product slate, Alliance governance, and export-driven distribution.

Regional players

• Indian Oil Corporation: Indian Oil Corporation is a state-owned Indian refiner producing base oils and finished lubricants for the Indian market. It is a regional peer to Luberef in supplying South Asian lubricant manufacturers and competes for Indian and MENA base oil demand.
• Reliance Industries (Base Oils): Reliance operates India's largest refinery complex and produces base oils for the domestic Indian market. It is a regional peer with comparable Group II/III production capabilities serving the Indian subcontinent, which is one of Luberef's key export markets.

Broad incumbents

• Shell Lubricants: Shell produces base oils (including Group II/III) as part of its integrated lubricants business and serves global automotive and industrial markets. Comparable to Luberef as a large-scale base oil producer with global distribution, though Shell also controls downstream finished lubricant brands.
• ExxonMobil Base Oils: ExxonMobil is a major global producer of Group I, II, and III base oils and one of the largest integrated lubricant companies. It competes with Luberef in core base oil categories and is a historical reference point — Mobil was a 30% shareholder in Luberef from 1976 to 2007.
• Neste (Base Oils): Neste produces premium Group III base oils (Neste NEXBASE) in Europe and is one of the leading suppliers to lubricant blenders globally. It competes with Luberef in higher-quality base oils and shares exposure to European and Asian lubricant customers.
• Chevron Base Oils: Chevron produces Group II base oils and finished lubricants through its global refining and lubes business. It is a broader incumbent with overlapping base oil capabilities and serves similar OEM and industrial lubricant customers, but as part of a much wider downstream portfolio.

Emerging players

• APAR Industries: APAR Industries is a specialty oils and cable manufacturer that recently signed a supply agreement with Luberef (June 2026) to produce transformer and specialty oils at LubeHub. While not a direct base oil competitor, APAR is a downstream customer and emerging ecosystem partner that highlights Luberef's LubeHub platform thesis.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat6 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/aramcoluberef
• YouTubeyoutube.com/@aramcoluberef/featured
• LinkedInlinkedin.com/company/luberef

Compliance1 record

Revenue estimate

Valuation estimate

Number of profiles

Profiles13 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

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