Luberef awards EPC contract to expand Yanbu base oil refinery
Saudi Aramco Base Oil Company – Luberef, one of the largest base oil producers in the world, has announced the signing of an engineering, procurement, and construction (EPC) contract for the expansion of its Yanbu base oil refinery.
The EPC contract with Petrojet is valued at SAR555 million (USD148.2 million). The Yanbu refinery was designed to produce 280,000 metric tonnes per annum (MTPA) of produced Group I base oils. In 2017, Luberef expanded its Yanbu refinery to produce Group II base oils. The expansion, which cost USD1 billion, added 600,000 MTPA of Group II base oil capacity, raising its total production capacity to just over 1.2 million MTPA.
Luberef aims to expand existing units at the Yanbu facility to their maximum potential production capacity to 1.3 million MT in 2025 by increasing Group II base oils productions or introduce the production of Group III base oils. This expansion will allow flexibility for the production of additional Group II and Group III base oils based on market demand.
Following a successful initial public offering (IPO), Saudi Aramco Base Oil Company – Luberef’s shares debuted on the Saudi Stock Exchange (Tadawul) on December 28, 2022.
Petrojet is a joint-stock multidisciplinary integrated contractor founded in Egypt in 1975 to be the construction arm of the Egyptian Petroleum sector. After four decades, Petrojet is recognised as a leading regional EPC Contractor with a strong portfolio covering various businesses like Oil, Gas, Chemical, Petrochemical, Power, Industrial and Infrastructure projects. The company renders its services in numerous countries across the Middle East and North Africa, and is currently stretching its services to Sub-Saharan Africa as well.
The company employs a workforce of more than 40,000 people, and owns a large fleet of modern construction equipment, world-class fabrication facilities for Process Equipment, Offshore Fabrication Yards and pipe coating facilities.